The Albanese government has been slammed after waving through the $142million sale of Tasmania’s largest farming estate to a UK-owned forestry giant.

Treasurer Jim Chalmers and the Foreign Investment Review Board approved the sale of Rushy Lagoon last week, a sprawling 21,744-hectare property in Tasmania’s north-east.

It paves the way for UK forestry investor Gresham House to convert the prime dairy and beef country into pine plantations.

Rushy Lagoon was previously owned by self-made farming magnate Allan Pye, the New Zealand-born ‘Spud King’ who built a multimillion-dollar potato empire before his death in 2024. 

The decision raised concerns about foreign ownership of Australian farmland, with farmers and the Tasmanian Government claiming opposition to the deal was ignored.

‘Backing a project, and then going through a process to decide if it’s fair or not, does not pass the pub test,’ Acting Premier Bridget Archer said.

‘We recognise the value of investment in regional Tasmania, but we hold serious concerns about the way this process has played out.

‘Rushy Lagoon is one of Tasmania’s most significant farming assets and has made a major contribution to our dairy, beef and cropping sectors for decades. 

Tasmania’s biggest farm (pictured) will fall into foreign hands after the Albanese government approved its $142million sale to UK forestry investor Gresham House

‘This decision will have a significant impact on Tasmanian farmers, the North East community, and Tasmania’s agricultural capacity.’

TasFarmers President Nathan Cox said the decision was a betrayal of Tasmanian agriculture and a breaking of the social contract between government and Australian people by greenlighting the use of taxpayer money against Australian farmers.

‘This is a disgraceful outcome for Tasmania and for Australian food security,’ Mr Cox said.

‘Rushy Lagoon has fed Australian families for generations’.

Critics have also raised concerns about Gresham House’s links to more than $69million in taxpayer-backed financing through the Clean Energy Finance Corporation, intensifying scrutiny of the acquisition. 

The sale is expected to be finalised next month, with Gresham House planning to blanket 9,000 hectares of the sprawling property with an estimated 12million radiata pine seedlings. 

The trees will be harvested in about 30 years, with the softwood timber destined for local mills to supply Australia’s building industry.

But forestry isn’t the only plan for the vast estate.

Federal Treasurer Jim Chalmers (pictured) is under fire after he and the Foreign Investment Review Board approved the sale of Rushy Lagoon in Tasmania’s north-east 

Gresham House’s Tasmanian asset manager Jono Craven said it is also exploring tourism opportunities, including converting some of the farm’s homes into accommodation and opening parts of the property to visitors for tours and mountain biking.

‘Rushy has some sort of significant coastal landscapes with slopes and undulation,’ Mr Craven told ABC News.

‘So it would be a different mountain biking experience, but you know it’s got some amazing coastline and aspect that I think people would be really excited about.’

The uproar over Rushy Lagoon comes as Labor already battles criticism over housing affordability, after taxpayer-funded advertisements promoting a first-home buyer scheme in Mandarin and Arabic triggered controversy this week.

The campaign promotes the government’s five per cent deposit scheme, which allows eligible buyers to purchase a home with a minimal deposit while avoiding lenders mortgage insurance thanks to a taxpayer-backed guarantee. 

On Wednesday, 2GB host Ben Fordham accused the Albanese government of handing One Nation and the Coalition a political ‘free kick’ by promoting its taxpayer-funded first-home buyer scheme in Arabic and Mandarin.

‘If the five per cent deposit scheme was for Australian citizens only there would be no argument.

‘But when you’re opening the door to non-citizens and then promoting it in other languages, you hand a free kick to One Nation and the Coalition. This is a very generous scheme. Make it for Aussies only.’

One Nation said the use of Arabic and Mandarin advertising to promote it is inappropriate when many Australians are struggling to get into the housing market

Labor expanded eligibility to permanent residents in 2023, but says temporary migrants are excluded and the ads comply with standard government communications rules. 

A spokesperson for Housing Minister Clare O’Neil defended the campaign, insisting the ads followed standard government protocol for information campaigns, which includes using languages other than English.