Problem to be addressed
The University of Tasmania operates campuses in Launceston and Burnie. These facilities are outdated, in inconvenient locations and limit the university’s capacity to offer modern courses.
Together, these deficiencies have contributed to student enrolments falling and have limited the opportunity to improve social outcomes for northern Tasmania. Many residents are faced with the challenges of high unemployment and below-average levels of education, leading to low workforce participation and low economic growth compared with national levels.
The proposed $300 million program includes relocating existing campuses in Launceston and Burnie to new inner-city locations, with state-of-the-art teaching and research facilities.
It also includes the delivery of new types of degrees and courses that better meet the needs of students and industry, including associate degrees, bachelor degrees and short courses.
There is substantial strategic merit in improving educational participation, which is often linked with improved living standards and higher levels of productivity.
Economic, social and environmental value
The largest estimated benefit from the project is the increase in the lifetime earnings and employability for new students who would not have otherwise obtained higher education.
The proponent’s stated benefit-cost ratio is 2.41, with a net present value of $483 million (7% real discount rate).
Capital cost of initiative as stated by proponent (2019 business case) $300 million (P90, nominal, undiscounted) | Australian Government contribution $150 million | State government contribution $75 million | Private sector contribution $75 million