Prime Minister Anthony Albanese has dipped his toe into a snap state election campaign in which budget debt is front and centre.
Tasmania is heading to the polls on July 19 after the island state's parliament passed a motion of no-confidence in Liberal minority Premier Jeremy Rockliff in early June.
It is the state's second election in as many years, and the fourth in the past seven.
The no-confidence motion, put forward by Labor and supported by three members of the crossbench, lashed Mr Rockliff's budget management.
Figures released by treasury on Wednesday forecast a worse financial position than estimated in the May 2025/26 state budget.
Treasury predicted net debt would reach $13 billion in 2027/28, above the budget forecast of $10.2 billion.
It called for "explicit policy choices", warning the rate of debt growth was unsustainable and couldn't be addressed solely by economic growth.
"As a state, we are spending more than we earn and the gap is growing," the treasury pre-election financial outlook said.
The Liberals have pledged measures to cut spending in the public service, but abandoned potential state asset sales as a means of paying down debt.
Both major parties have avoided big-spending promises, while Labor says it plans to soon release a more detailed financial strategy.
The Liberals (14 seats) and Labor (10) face an uphill battle to get the 18 seats required for majority.
There was a big swing, and a gain of two seats, for Labor in Tasmania at the May federal election. But it remains to be seen if the sentiment will translate to state level.
Voter polling taken in May showed Labor had 31 per cent support, the Liberals 29, with the remaining 41 per cent either minor parties, independents or "other".
Mr Albanese appeared in Launceston on Wednesday alongside state leader Dean Winter and federal Bass MP Jess Teesdale to announce a plan to boost childcare services.
"It's great to be back here in Tasmania, my second visit in this term of government," he told reporters at an early learning centre.
State Labor plans to "change the rules" to ensure any new public schools or major school redevelopments have a childcare centre.
The Liberals, who have been in power since 2014, promised a reduction in red tape around residential planning approvals, and spruiked a new agricultural learning centre.
