The ocean region around Tasmania forms an interface between major ocean basins and represents a significant global ocean hotspot due to a rate of warming higher than the global average. Nearshore Tasmanian waters are of central importance for shallow-water ecosystems and a range of human activities, including recreation, aquaculture and fisheries which have become increasingly impacted by warming in recent decades. However, the fine-scale spatial and temporal variability of sea surface temperature (SST) in these waters is not well understood, limiting opportunities for effective local-scale mitigation and adaptation measures in the face of ongoing warming. We use a high-resolution (0.02 °x 0.02°, 1992–2020) satellite SST received at local stations (validated against in situ temperature) to explore variability over seasonal, interannual, decadal and multi-decadal timescales at spatial scales from the nearshore up to the entire study domain. The SST is used as a proxy for seasonal circulation by removal of the broad-scale radiative forcing (estimated by a region-wide latitudinal gradient of SST). The main circulation drivers of nearshore SST are the East Australian Current Extension (EACx) and Zeehan Current (ZC) acting on the east and west coasts with respective peaks in summer and winter. New results include the seasonality of three summer upwelling systems, the first direct evidence of EACx inflow into eastern Bass Strait, a time series of the endpoint of the ZC/EACx intersection, and a full year description of the ZC, from warm winter inflow transitioning into a summer cooler than ambient intrusion. We find that local SST variations are controlled by coastal geometry with intensified atmospheric forcing in enclosed waters. We have identified two modes of low frequency SST variability (including 1, 2 and 10-year periods) associated with the EACx (63% of the variance) and the ZC (12%). The EACx mode induces a rapid adjustment of the entire ocean region around Tasmania. Multi-decadal warming trends occur in all regions, modulated by coastal boundary flows, changes in upwelling mechanisms and local topography. Trends in the eastern shelf arise from intrusions of EACx waters, with local processes driving trends on the western shelf. Both east and west nearshore SST trends are around + 0.4°C decade−1 with the highest value of + 0.55°C decade−1 on the central west coast, possibly associated with outflow from Macquarie Harbour.