The Tasmanian Government has decided against pursuing a public-private partnership (PPP) for the development of the proposed Macquarie Point stadium in Hobart, Tasmania, Australia.

Instead, it will appoint a single contractor to design and construct the stadium. This decision follows a market-sounding process that, while indicating strong interest in a PPP, revealed concerns that such an arrangement could lead to higher taxpayer costs, extended timelines, and diminished public ownership of the asset. The 23,000-seat covered stadium is envisioned not only as a home ground for the AFL team but also as a venue for business events, featuring a 1,500-person function room and a stage pocket. The government anticipates that commercial development opportunities within the Macquarie Point precinct will attract private sector investment. 

To address a funding shortfall—estimated at a minimum of AU$ 145 million (US$ 93 million) the government plans to borrow over AU$ 200 million (US$ 128 million) through the Macquarie Point Development Corporation (MPDC). Additionally, it intends to sell approximately 17,000 square meters of commercially zoned land and a future underground car park within the Macquarie Point precinct to private developers. These measures aim to cover the gap beyond the AU$ 630 million (US$ 404 million) already committed by the state and federal governments, along with contributions from the AFL. The stadium, initially estimated to cost AU$ 775 million (US$ 497 million), has faced independent assessments suggesting costs could rise to AU$ 900 million (US$ 577 million) or more. Borrowing is expected to commence around 2027, with the stadium slated for completion by 2029.