Prime Minister Announces $24 Million Funding to Support Tasmanian Paper Mill

Prime Minister Anthony Albanese has revealed a $24 million funding package to support the renovation of Tasmania’s historic Boyer paper mill near Hobart.

This investment is part of the government’s broader initiative “Future Made in Australia,” which aims to rejuvenate Australia’s domestic industrial capacity in alignment with net-zero goals.

The Boyer mill, operational for over 80 years, is Australia’s sole newsprint producer and a significant employer in the Derwent Valley, sustaining 310 local jobs.

The funding is meant to help the mill transition to a decarbonized state and broaden its production capabilities.

“Today, our government commits up to $24 million to ensure the mill’s long-term survival,” stated Albanese.

“This includes $9 million over the next two years to stabilize operations during the transition, along with an additional $15 million in matching funds for electrification and emissions reduction projects.”

Tasmania a Key Election Battleground

Albanese’s announcement comes as he continues his campaign in Tasmania after major policy launches in Perth and a stop in Adelaide.

Tasmania is a competitive state with three of its five electorates set for tight battles between Labor and the Coalition.

Earlier this week, Opposition Leader Peter Dutton also focused on the Apple Isle, unveiling a $124 million regional development package.

A key element of the Coalition’s plan is to establish permanent timber production zones to protect jobs and native forest logging access, alongside a $40 million pledge to boost domestic timber processing and reduce reliance on imports.

“Tasmania needs a government that backs jobs and industries, not one that puts red and green tape ahead of regional livelihoods,” Dutton said during a campaign stop.

The package also includes plans to strengthen the salmon industry, which the Coalition says is threatened by Labor’s environmental regulations and approval delays.

Albanese Stands by Support for Salmon Farming

Labor, meanwhile, is defending its record on Tasmanian jobs and environmental management.

Albanese highlighted bipartisan legislation passed under his government to protect the state’s salmon industry, particularly in Macquarie Harbour, from legal and regulatory uncertainty.

He pointed to a $37 million investment in environmental sustainability measures such as oxygenation to support the industry’s future.

“My government makes no apologies for supporting jobs—especially in regions like this,” Albanese told Parliament. “At the same time, we’re backing sustainability through smart investment, not overregulation.”

To strengthen Labor’s ground game in Tasmania, the party has endorsed long-serving Senator Anne Urquhart as its candidate, leveraging her strong regional connections to try take the seat of Braddon from the Liberal Party.