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Hobart AFL stadium business case released, seeking $240 million from federal government

The Tasmanian government has detailed how it proposes to fund a $715 million roofed stadium at Macquarie Point in Hobart, the timeline for construction and how it would integrate into the city.

Premier Jeremy Rockliff handed over the final business case to Prime Minister Anthony Albanese on Thursday, seeking $240 million — one-third of the total — in Commonwealth funding starting in 2026-27.

The stadium cost is cheaper than the $750 million floated when it was first proposed, and the requirement for Commonwealth funding has dropped from half the total cost.

The roofed stadium is described as a "key requirement" for Tasmania's entry into the AFL from 2027, as identified by the other clubs — but it faces political challenges from all sides. 

The Tasmanian government has committed $375 million, the vast majority in 2026 to 2028, while asking the  Commonwealth to provide $50 million in 2026-27, $175 million in 2027-28 and $15 million in 2028-29.

The business case argues that the stadium would generate $85 million in direct economic activity per year, and 950 ongoing jobs, in addition to 4200 construction jobs.

After the AFL chips in $15 million, it leaves $85 million remaining, which the state government argues will come from borrowings against land sale, or lease for commercial uses.

But according to the business case, "all that remains" is the Commonwealth contribution — which would allow the project to progress to planning and construction.

"It will also deliver our dream of our own AFL side, finally allowing Tasmania to take our rightful place on the national sporting stage," Mr Rockliff said.

On Friday afternoon, the Prime Minister said the federal government would "examine the detail" of the proposal.

Mr Albanese said the stadium plan would be viewed through the lens of finally transforming and utilising Macquarie Point — "that beautiful part of Hobart".

The business case has also provided further insight into what the roofed stadium might look like on the 9.3-hectare Macquarie Point precinct, adjacent to Hobart's waterfront and CBD.

It uses the planned Te Kaha stadium in Christchurch as an example, which is scheduled for completion in 2025.

Hobart's stadium would have a similar roof structure, with a north-facing clear roof, and a solid component at the southern end, but with a smaller capacity of 23,000.

The stadium was described as "boutique", on a smaller scale than the Gold Coast Sun's stadium, and would include corporate and events spaces, with potential for 1,500-person hotel accommodation.

Stadium works were estimated to be $527 million, and site works at $150 million and escalation was $64 million, but $26 million was taken off the project cost due to already-funded Macquarie Point works.

The business case estimates the planning phase could be completed by late 2024, contractor appointed in early 2025 and construction complete by mid-2028, meaning the Tasmanian AFL team would need to play its first two seasons at Bellerive Oval and Launceston's York Park.

The government hopes that the workforce being used on the Bridgewater Bridge project can flow into the stadium project, when the bridge is completed.

It has also listed four options for the planning phase — go through the standard council process, use the government's major projects legislation to circumvent roadblocks, declare it a project of state significance, or create specific legislation for it.

About 10,000 cubic metres of contaminated material will need to be removed, existing warehouses demolished and a brewery relocated as part of the enabling works.

The site has already had 67,000 tonnes of soils removed, along with 2.3 million litres of contaminated groundwater, underground tanks and mechanics pits. 

The majority of the land was described as "remediated to a point where it can be safely capped/sealed" to minimise vapour risks.

Plans for "The Park" open public space area, and the Antarctic and Science Precinct, are unchanged, with public art to be "integrated" with the stadium precinct.

The government considered six sites for the proposed stadium, but settled on either Regatta Point or Macquarie Point as its preferred options.

Former premier Peter Gutwein announced the former in March, but this was changed to the latter in July due to additional costs for the "floating" design on the regatta grounds.

This decision also followed a visit to Hobart by top AFL executives, who preferred Macquarie Point.

The business case detailed issues with Bellerive Oval, including the inability for expansion due to nearby residential areas, and its distance from the CBD.

The government also argued the proposed Macquarie Point stadium would benefit from an expanded Derwent River ferry service, with four new terminals — including at the Derwent Entertainment Centre — planned for the coming years, funded by the Commonwealth.

Minimal transport network changes were proposed, but the business case assumed the northern suburbs transit corridor would be developed for transport uses by 2029. The stadium would sit at the end of this corridor.

The government earlier commissioned a report which cited attendance estimates, released under Right to Information.

This included a prediction that seven regular season AFL matches would average crowds of 20,000, that three A-League and two Super Rugby matches would get 7,500 each, and the Big Bash League would average 10,000 across four matches.

The document also estimated the stadium would attract three international-standard concerts per year with 30,000 people in attendance.

The business case continued to cite this document for its attendance estimates.

Also included in the business case are testimonials from supporters of the project, including UK entertainer Robbie Williams, current and former AFL players and identities and local media, tourism, hospitality and union figures.

Replying to a question about whether he would like to perform at a new stadium in Tasmania, Williams said: "I would actually love to, even if they have a medium-sized stadium. I've never been there and I'd like to go."

Language change

The ball is now, entirely, in the Commonwealth's court.

But Mr Rockliff said his meeting with Mr Albanese on Thursday was not just about the stadium, but about all infrastructure priorities for Tasmania.

The government has also changed its language around the project, with it morphing from the Macquarie Point "arts, entertainment and sporting precinct" into the Macquarie Point "urban renewal project".

Mr Rockliff said the urban renewal aspect included housing and transport developments on the northern suburbs transit corridor.

The government faces a challenging political sell, with Labor-commissioned polling showing 67 per cent of Tasmanians oppose the idea.

Tasmania's federal Liberals have also voiced opposition, including Bass MP Bridget Archer, Braddon MP Gavin Pearce, and senators Jonathon Duniam, Wendy Askew and Claire Chandler, but senator Richard Colbeck has spoken of his support.

The federal Labor government has avoided stating a position until it sees the final business case.

State Labor MP Ella Haddad today said the opposition would "certainly look at the business case" but that housing and the health system should be a priority instead for any money.

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