South Australia has handed down a cautious state budget the government says is “healthy”, “confident” and “living within its means”, despite mounting pressure on major infrastructure projects and frontline services.
Debt and Economic Growth
Treasurer Tom Koutsantonis defended the state’s rising debt, insisting it is not a measure of government performance and should instead be viewed as investment designed to keep the economy moving. He said South Australians should judge the government on economic growth, which he argued continues to rise, and confirmed the state’s net debt‑to‑revenue ratio is “dropping every year”.
Women’s and Children’s Hospital
The new Women’s and Children’s Hospital remains budgeted at $3.2 billion, but Koutsantonis conceded the project is “having difficulties” meeting that target. He said he is “working through it” and promised the public would be told if costs blow out. When asked by 7NEWS Adelaide political reporter Mike Smithson how deep Labor’s pockets are if major projects run over, the Treasurer refused to reveal the size of the contingency fund — saying he did not want contractors knowing “how deep they can dig”.
Premier’s Statement
Premier Peter Malinauskas said the Budget delivers the biggest cost‑of‑living relief package in the state’s history while maintaining surpluses and pushing ahead with the largest infrastructure program South Australia has ever undertaken.
Winners
Families
Families with school‑aged children are among the biggest beneficiaries, with Labor progressing its $174 million commitment to make public schooling “fee‑free” from Reception to Year 12 from 2027. A $74 million package aims to “keep kids off screens” by reducing out‑of‑pocket costs for school and extracurricular activities, including one free term of before‑school or after‑school programs and funding to ensure every Year 7 public school student has the opportunity to attend a school camp.
Sports voucher eligibility will also be expanded to include 16‑year-olds and 17‑year‑olds. Parents who rely on out‑of‑school‑hours care will see new centres built at 68 government primary schools, creating more than 2300 places over four years.
Seniors
Older South Australians will benefit from $77 million in stamp duty relief for over‑60s downsizing from large family homes, along with an $8.4 million expansion of the Seniors Card program.
Families Undergoing IVF
An Australian‑first IVF rebate scheme worth $18.5 million will provide $2000 per cycle for up to two cycles to help ease the cost of starting a family.
Regional Patients
Regional South Australians who travel long distances for medical care will see a dramatic expansion of the Patient Assistance Transport Scheme. The accommodation subsidy will jump from $44 to $110 per night, and a new cumulative travel subsidy will support patients who travel more than 300km for renal or oncology treatment.
Housing and Apartment Developers
As part of its $2.5 billion housing plan, the government will set aside $500 million for an Apartment Fast‑Track Fund, allowing the state to act as guarantor for new CBD apartment projects. The rent‑to‑own scheme will also expand, opening 2000 more homes and allowing tenants to pay 75 per cent of market rent for two years before purchasing at a locked‑in price.
Public Housing Tenants
A further $140 million will be spent renovating 300 vacant public homes and creating 200 supported accommodation places for tenants with complex needs.
Health
Health receives a major $1.7 billion boost to meet demand. A $250 million no‑interest loan scheme will deliver up to 650 new aged‑care beds to free up hospital capacity, including a minimum requirement for dementia support beds. Nearly $30 million will go towards mental health services, including a new specialised unit at Royal Adelaide Hospital. Clare Hospital will receive a new 24/7 emergency department, while Murray Bridge Soldiers’ Memorial Hospital will undergo upgrades to its maternity, birthing and renal units. Regional ambulance services will expand with new paramedics and upgraded stations, and 24‑hour pharmacies will be extended with three new sites across Adelaide and Mount Barker. Women’s health services will also grow through $10 million for specialised clinics focusing on endometriosis, pelvic pain, pregnancy and fertility.
Police and Justice
SAPOL will receive $11.5 million to establish a new drone operations unit, while new police stations will be built in Murray Bridge and Mount Barker. A new Serious and Complex Crime prosecution team will be created to manage high‑level court matters and reduce delays in major cases.
Road Users
Road funding remains modest but includes safety upgrades on the South Eastern Freeway, new roundabouts in Adelaide’s south and improvements to Horrocks Hwy following a series of serious crashes. Koutsantonis warned that the North‑South Corridor, currently averaging 25km/h, must be completed or “the grid risks grinding to a halt”.
Arts and Events
South Australia will gain a new international‑standard gymnastics venue worth $100 million, along with a $49.3 million state‑of‑the‑art arts and media hub to be delivered with the ABC and major arts companies by 2029–30.
Innovation and Industry
A landmark $50 million investment will “supercharge” research and development as part of a $650 million innovation package aimed at positioning South Australia as the “Smart State”. The government has also struck a long‑term domestic gas supply agreement with Santos to support the transformation of Whyalla steelworks. Another $319 million will be spent on the now state-owned Whyalla steelworks to facilitate its sale, with a further $6.5 million to oversee the transformation and “divestment” of the state’s gas turbines, with an extension of the Steel Task Force.
Losers
Emergency Departments
There is no specific new funding to directly address ramping, despite ongoing pressure on emergency departments. However, funding allocated to other health departments is expected to help ease the glut of patients who are waiting for hours to be seen in SA’s emergency department.
Parents Paying for School Materials
Parents will be expected to pay for school materials, with the Treasurer ensuring the funding is “fair” no matter what public school you send your child to. Only the school fee, which can be up to several hundred dollars, is to be waived in the new free public schooling rollout. The Treasurer said schools are still welcome to fundraise for materials if required.
Businesses Seeking Payroll Tax Relief
Businesses seeking some easing of cost pressure amid the latest wage rises will be disappointed, as the state government has ruled out any payroll tax relief in this budget.
