Tasmania looks set to have its own AFL team after Prime Minister Anthony Albanese pledged an additional $240 million to the state government to build a new waterfront stadium in Hobart.
The prime minister said some of the AFL's greatest players had come from Tasmania, and it was time for the island state to have its own team.
"It's not the Australian Football League if it leaves off the south island, and that's what's occurred for too long," he told reporters on Saturday.
"What this project will be is a very significant project that will lift up Tasmania and lift up this most beautiful of cities here in Hobart."
The funding will go towards redeveloping Hobart's waterfront on the River Derwent, from Macquarie Point to Regatta Point with a multi-purpose stadium, as well as upgrading the areas transport and ports, and building new housing.
"This is an exciting project," the prime minister said.
"The truth is that more should have been done over the last decade."
The pre-budget announcement to build the sporting facility had been widely tipped this week, after the AFL said Tasmania's entry into the competition could only happen with the construction of the $715 million stadium.
The plan will be developed through engagement with Hobart locals, First Nations groups, the Hobart City Council and RSL Tasmania to ensure the site respects the area's history.
The additional $375 million will come from the Tasmanian government, and $15 million will come from the AFL, and another $85 million will come from commercial land sales, according to the Hobart Mercury.
Mr Albanese said 4200 jobs would be created during construction of the precinct plus ongoing jobs in tourism and hospitality.
The deal was confirmed by Tasmanian Premier Jeremy Rockliff shortly before he appeared with the prime minister in Hobart.
"As I said, I don't want to sit back in 10 years time when I'm back on the farm, thinking 'you know what, if only I drove that a bit harder we might've got that'," the premier said in a tweet on Saturday.
Tasmania would be able to host major events that had previously skipped the state, and the construction and life of the stadium would create investment and new jobs for locals, Mr Rockliff later said in a statement.
The prime minister was heckled during Saturday's announcement over the rising cost of housing in Tasmania, as he said building new homes would be a central part of the broader redevelopment.
Affordable houses, including for essential workers, would be built on crown land at Regatta Point as part of the project, the prime minister said.
"Let's talk about housing prime minister," a woman yelled at Mr Albanese during the press conference.
The Albanese government has also committed $65 million to match state government funding for upgrades to UTAS stadium in Launceston, which will also host AFL matches.
The UTAS Stadium redevelopment will deliver a new eastern stand, improved playing facilities and an entertainment precinct.
© AAP 2023