South Australian Budget 2024-25

On Thursday 06 June 2024, Treasurer the Hon Stephen Mullighan MP delivered the 2024-25 South Australian Budget.  The 2024-25 Budget prioritises the Malinauskas Governments’ focus on housing, cost of living relief, jobs and skills, and health.

The 2024-25 Budget is set in an environment of continuing high interest rates and inflation, aiming to provide additional targeted cost of living relief to support South Australians most in need, and small businesses to reduce costs.

This budget includes a significant investment in jobs for the future, including partnering with the Commonwealth Government to address critical skills shortages and increase training in key industries for our economy. It also funds generational reform in early childhood education and care in South Australia by commencing the rollout of universal preschool for 3-year-olds. 

There is further investment in housing, building on last year’s budget, to boost supply and improve affordability. The government continues its investment in the capacity and effectiveness of the state’s health system to address the growing demand for public health services. This budget maintains the government’s infrastructure investment to meet the future needs.

The 2024-25 South Australian Budget can be found here.

The Treasurers Budget Address can be found here.

Budget Outlook  

There is expected to be a $306 million general government net operating balance surplus in 2023-24, with the budget projected to remain in surplus across the forward estimates.

The state’s population has grown strongly (by 1.7 per cent in the year to September quarter 2023), particularly due to a strong recovery in net overseas migration and the return of international students.

The pace of growth (in South Australia and nationally) has slowed, following rising interest rates, higher inflation, and capacity constraints. Inflation has moderated but remains above target rates. Following two strong years of growth (3.4 per cent in 2022-23 and estimated growth of 2 per cent in 2023-24), employment growth is forecast to slow to ½ per cent in 2024-25 returning to long-term growth of 1 per cent per annum in 2026-27

General government sector net debt is expected to rise from $19.1 billion at 30 June 2024 to $33.6 billion at 30 June 2028. The non-financial public sector (NFPS) net debt reflects the combined debt of the general government and the public non-financial corporations (PNFC) sectors. The NFPS net debt is estimated to increase to $44.2 billion at 30 June 2028, up from $27.9 billion at 30 June 2024.

Fiscal Targets Outcomes

Key Budget Indicators

2024-25 Budget Commitments

Economy

The 2024-25 Budget provides for a range of initiatives that will support the South Australian economy, including:

• $43.0 million over two years to undertake significant emergency fruit fly response activities following further outbreaks across the Riverland and the Adelaide metropolitan area
• $4.4 million over four years for the rural financial counselling and family and business support mentors programs
• An additional $32.2 million allocation in 2027-28 to the total value of the Economic Recovery Fund
• $28.0 million over four years to strengthen the state’s green economic credentials including the state’s approach to managing biodiversity
• $24.4 million over five years for net zero agriculture to develop and deliver innovation, on-farm solutions and support the upskilling of the agricultural sector to reduce emissions through low emission intensity farming systems, and to support the state’s target to achieve net zero emissions by 2050.
• $20.8 million over four years to accelerate adoption and consumer awareness of a distinct South Australian destination brand through tourism marketing
• $14.0 million over four years to expand the Business Events Fund with a focus on supporting more events during winter periods
• $6.8 million over four years to increase Defence SA presence at major exhibitions locally and overseas, in particular events in the United States and United Kingdom, and meet growing demand from the South Australian defence industry to participate in local and overseas events
• $6.0 million over four years to extend existing programs to support economic growth and attract investment to the state for the investment attraction program and the global expansion program
• $5.8 million over two years for 32 cabins to ensure the Hydrogen Jobs Plan construction workforce can be housed during project delivery.
• $4.8 million over four years to implement a regulatory framework to assist licensees reduce emissions, and support government meeting its net zero targets
• $4.3 million over four years to continue and enhance Brand SA’s functions to promote South Australian products and businesses and the South Australian brand through market engagement and campaigns, industry partnerships and brand strategy
• $4.1 million over four years for the implementation of the Act and Regulations, including the preparation of regulatory tools needed to support world-leading large-scale hydrogen and renewable energy projects in South Australia.
• $3.6 million over two years to support the implementation of the government’s green iron and steel strategy.
• $4.1 million over four years for the implementation of the Act and Regulations, including the preparation of regulatory tools needed to support world-leading large-scale hydrogen and renewable energy projects in South Australia.
• $1.7 million over two years to enable the Whyalla taskforce to continue to support the long-term sustainability of the local steel industry in South Australia
• $380 000 over two years to extend and expand to all age groups the SAYES program, a business mentoring and learning program designed to help South Australian entrepreneurs establish a business or further develop and grow their existing business.

Round 1 of the Economic Recovery Fund focussed on Manufacturing Innovation and Regional Tourism Infrastructure Development. This round has been completed with total financial assistance of $26.3 million offered to the successful applicants.

The 2024-25 Budget allocates $20 million under Round 2 of the Economic Recovery Fund to support eligible small businesses and not-for-profit organisations to invest in energy efficient equipment or improvements to reduce and manage their energy usage and costs. Details of future rounds under the $154.2 million fund, including sectors to be targeted, funding amounts available and the relevant dates will be announced at the commencement of each round.

Cost of Living

The 2024-25 Budget provides $266.2 million over five years for initiatives that support South Australians facing cost of living pressures, including:

• $112.8 million over four years for a range of initiatives including:
  • $51.5 million in 2023-24 to provide a once-off additional Cost of Living Concession payment of $243.90 to all recipients who have received the Cost of Living Concession payment in 2023-24
  • $36.6 million over four years to double the Cost of Living Concession for tenants and Commonwealth Seniors Health Card holders by aligning to that of homeowners 4
  • $14.1 million over four years for initiatives including improving access to concessions for tenants in share houses, expanding access to glasses, emergency electricity payment and funeral concessions as well as providing companion card holders access to Changing Places facilities 
  • $10.6 million over four years to extend public transport concessions to all Health Care Card holders
  • $54.6 million over four years from 2024-25 to expand the sports vouchers program from 1 January 2025 and address the cost of participating in sport and recreation activities. The initiative will double the number of vouchers able to be claimed per child from 1 to 2 to encourage school aged children to participate in multiple activities or allow parents to claim a $200 deduction on sport and recreation fees per child on the one activity per calendar year. The program will also be expanded to include music lessons as an eligible activity
  • $35.8 million over three years for a social housing energy upgrade initiative to provide thermal shell upgrades and replacement of inefficient appliances to deliver energy efficiency and cost saving benefits to tenants in both the public and community housing sectors. This is expected to provide energy efficiency upgrades for over 3500 homes
  • $24.0 million in 2024-25 to deliver a $200 reduction to government school parents, caregivers and independent students for the materials and services charge for the 2025 school year. This builds on the relief provided in 2023 and 2024
  • $20 million under Round 2 of the Economic Recovery Fund to support eligible small businesses and not-forprofit organisations to invest in energy efficient equipment or improvements to reduce and manage their energy usage and costs
  • $18.4 million over four years to support non-government organisations in meeting the costs associated with wage and inflation pressures. This is in addition to the supplementation announced the 2022-23 MYBR and 2023-24 Budget.

Skills

The National Skills Agreement represents a $2.3 billion investment in skills over five years in partnership with the Commonwealth Government. The 2024-25 Budget provides an additional $610.3 million over the forward estimates ($692.6 million to 2028-29) to deliver on the requirements under the agreement, ensuring that South Australians get the skills they need for the jobs being created across the state and drive higher completions. This includes:

• $275.6 million to increase the number of training places by around 35 per cent to over 160 000, prioritising the future skills needs of the state in areas including Defence, health, building and construction, early childhood education, clean energy transition and ICT. This includes a 20 per cent increase in TAFE SA places in regional SA.
• $62.6 million for quality training including a boost to audits and investigations to ensure training providers and employers meet their obligations. This includes a strong focus on apprenticeship safety and addressing unacceptable behaviours in the training system.
• $56.2 million to support students and increase training completion rates, including additional funding for financial and other wellbeing supports, such as help to find secure housing and manage financial stress, access to career and course information, and foundational skills programs.
• $53.1 million to increase the VET workforce, develop curriculum to meet the state’s economic priorities, and invest in teaching plant and equipment and student infrastructure.
• $18.3 million for Closing the Gap initiatives that deliver tailored education programs to First Nations students, and support lifting the proportion of Aboriginal people with a Certificate III or above.
• $13.3 million to support the state’s workforce planning and defence industries pathways programs.
• $9 million to support programs in regional areas to connect learners, employers and trainers to get people into training and work where it is needed most.

Early Childhood Education and Care Reform

The government is investing $1.9 billion up to 2032 ($715 million over the forward estimates) for generational reform of early childhood education in South Australia. The investment reflects the government’s response to the Royal Commission into Early Childhood Education and Care.

The reform priorities will deliver universal 3-year-old preschool, align the support offered through 4-year-old preschool with the enhanced support framework being developed for 3-year-old preschool, provide more hours and support for children most in need, and grow and support early childhood workforce.

This includes

• $339.7 million over five years to deliver universal 3-year-old preschool in government and non-government settings, including long day care centres.
• $10.3 million in central support for government out of school hours care (OSHC) provision and to establish an OSHC reform team.
• $127.3 million over four years to increase the minimum 15 hours to 30 hours of preschool for 2 000 children at greatest risk of developmental vulnerability at age 3 and 4 in local settings and integrated hubs
• $96.6 million over four years including a $56 million early childhood workforce development fund and support for quality teaching and learning in readiness for universal preschool delivery.
• $96.1 million over four years to support the Office for Early Childhood Development in its role as system steward of the early childhood development system in South Australia
• $30.6 million over four years to align the support offered through 4-year-old preschool with the enhanced support framework being developed for 3-year-old preschool, including bringing together education, allied health and other specialist supports.
• $14 million over four years to establish the Royal Commission’s recommended fund commencing in 2026 and reaching full scale from 2029.
• $10.8 million over four years to expand early childhood parenting groups through the Child and Family Health Service from 2025-26, deliver ongoing funding for Words Grow Minds.

Housing

The 2024-25 Budget continues the government’s significant investment in improving housing outcomes for South Australians, including:

• $576 million from 2023-24 to 2034-35 (including over $195 million between 2023-24 and 2027-28) to redevelop SA Housing Authority (SAHA) land at Seaton estimated to deliver 1 315 dwellings including 388 social and 197 affordable homes, and to redevelop government owned land at Noarlunga Downs estimated to deliver 626 dwellings including 80 social and 90 affordable homes.
• $150.2 million from 2023-24 to 2030-31 (including over $80 million between 2023-24 and 2027-28) will be invested to consolidate and redevelop various government sites at Noarlunga Downs. This is expected to deliver 626 dwellings, including 80 social and 90 affordable homes
• $135.8 million to build and upgrade 442 new social housing dwellings as part of the Social Housing Accelerator Payment funded by the Commonwealth Government
• As part of the new national agreement, the Commonwealth Government will provide the state with $67 million for enabling infrastructure in order to expedite housing development and new social housing.
• $65.9 million in 2025-26 to assist SAHA to meet public housing build commitments announced as part of A Better Housing Future
• $30.0 million over three years from 2024-25 to provide additional assistance to grow regional housing
• $5 million over four years to extend intake for the Aspire homelessness program for a further 36 months to 30 June 2027, expected to assist a further 264 people
• $1.1 million over two years for Consumer and Business Services to provide further assistance to consumers seeking to resolve disputes with builders and contractors on various issues in the building industry, and to better monitor and investigate non-compliance by builders.
• $289 000 over five years for resourcing required to assess outline consent applications, a new assessment tool enabling an applicant to obtain an early development application decision before committing substantial resources to the project.
• $14 million over four years to remove the property value stamp duty thresholds for eligible first home buyers who enter into a contract to purchase a new home or vacant land to build a new home on or after 6 June 2024
• $16 million over four years to remove the property value cap of $650 000 on the First Home Owner Grant for eligible contracts entered into on or after 6 June 2024.

All first homebuyers will now be eligible for stamp duty relief and the First Home Owner Grant on purchase of new homes. The 2024-25 Budget also extends the Aspire homelessness program and provides worker accommodation at Whyalla to support the Hydrogen Jobs Plan.

Health

The 2024-25 Budget provides a substantial increase in the level of health resources including:

• $1.6 billion over five years to recognise the recent increase in the national efficient price, and the higher cost of service delivery across local health networks. Support will be phased out as SA Health progressively increases the efficiency of its services
• $742.3 million over five years to meet activity demand pressures in our public health system.
• $17.1 million over four years to expand renal haemodialysis in the northern metropolitan area, providing an additional 21 chairs and supporting an additional 84 patients to receive services in the area
• $11.5 million over four years to support the Port Pirie emergency department upgrade and provide for a multi profession simulated training and development service, including a clinical simulated training laboratory.
• $24 million over three years to support the government’s ambulance station boost strategy by building new stations in Whyalla, Marion and Two Wells, rather than refurbish existing ones
• $15.2 million over three years to respond to and manage current tuberculosis outbreaks across South Australia, and support the delivery of improved detection, monitoring and treatment of tuberculosis transmissions in Aboriginal communities.
• $5 million over four years to support youth mental health services, including an expansion of child and adolescent virtual urgent care services, mental health workshops, and to support carers and families of those with eating disorders.
• $4.3 million over three years to build a new integrated cancer consult suite at Mount Gambier Hospital
• $23.5 million over two years for the SA Ambulance Service electronic patient care record system
• $16.5 million in 2024-25 to provide 20 additional general inpatient beds at Lyell McEwin Hospital
• $13.7 million over two years to provide 36 additional surgical and general inpatient beds at the Queen Elizabeth Hospital
• $10.7 million over four years to provide additional staff for the clinical telephone assessment service as part of the SA Ambulance Service clinical hub.

Education

• $155.3 million over five years (including $1.1 million in 2028-29) to respond to demand for school enrolment places in the northern suburbs by providing an additional 1 300 places through the construction of a new secondary school
• $62.7 million over four years to respond to demand for school and preschool enrolment places in Mount Barker by providing an additional 100 preschool places and 350 primary school places through the construction of a new preschool and primary school.
• $38.1 million over four years to address urgent and high priority facilities upgrades in the following five government schools:
  • Mount Gambier High School ($6 million)
  • Le Fevre High School ($4 million)
  • Mount Barker High School ($4 million)
  • Bellevue Heights Primary School ($7.6 million)
  • Surrey Downs Primary School ($16.5 million).
• $212 000 in 2024-25 to support year two of the research project aimed at assessing and boosting disability and inclusion studies in South Australian teaching degrees

Infrastructure

There will be a $25.6 billion spend over four years for total public sector infrastructure. This includes:

• $15.4 billion for theNorth-South Corridor – River Torrens to Darlington (including $7 billion up to 2027-28, expected completion 2031
• $3.2 billion for the Women’s and Children’s Hospital (including $1.7 billion up to 2027-28), expected completion June 2031
• $498 million for the Flinders Medical Centre (FMC) upgrade and expansion (including $408 million up to 2027-28), expected completion December 2028

Roads & Transport

• $200 million over three years to complete the delivery of a managed motorway between the Tollgate and Crafers on the South Eastern Freeway
• $150 million over four years to upgrade two interchanges with the South Eastern Freeway at Mount Barker and Verdun to reduce congestion and improve safety.
• $31.8 million over three years for the construction of three overtaking lanes on Main South Road between Normanville and Cape Jervis
• $20 million over four years towards planning for transport network improvements to support the Riverland region to improve network resilience following the River Murray flood event
• $10.8 million over five years to commence operations of the Port Dock railway line to provide a 30-minute service on weekdays and weekends, and bus connectivity to the new Port Dock bus and rail interchange.
• $10 million over three years towards planning for transport network improvements to support Adelaide’s northern growth areas.
• $10 million over two years towards planning for outer metropolitan and regional passenger rail service extensions
• $5 million in 2024-25 to complete planning for bus and depot infrastructure to support transition to a zero-emissions public transport bus fleet
• $2 million in 2024-25 to deliver planning studies to identify solutions to support transition to a zero-emissions public transport rail fleet.
• $38.7 million over four years for the purchase, implementation and ongoing operation and maintenance of additional road safety cameras
• $35 million over three years to deliver additional road safety maintenance for regional and metropolitan roads
• $3.8 million over three years for the construction of a new heavy vehicle rest area at Salt Creek along the Princes Highway
• $2.6 million over three years to implement reduced speed limits of 40km/h at priority locations on arterial roads near schools

Arts, Recreation & Sports 

• $83.1 million over four years to to redevelop the Netball SA stadium at Mile End, increasing the number of indoor courts allowing greater capacity for indoor netball and other indoor sports, upgrading the 26 existing outdoor courts, and improving supporting infrastructure
• $20.7 million over 5 years to establish an arts investment fund to drive targeted investment in strategic initiatives across South Australia’s arts, culture and creative industries
• $19 million over three years for new accommodation for the State Theatre Company, State Opera and Country Arts South Australia
• $7.2 million over three years to continue the partnership between the South Australian Film Corporation and the ABC for the production of screen content in South Australia
• $720 000 in 2024-25 to construct four permanent structured pavilions in Mount Gambier for Generations in Jazz
• $20 million over three years to provide upgraded sporting and community facilities at Lyndoch Recreation Park, in preparation for Gather Round 2025
• $8.3 million over four years to ensure the Tour Down Under continues as a world-class, compelling event, delivering growth in visitor expenditure and community outcomes.

Supporting Communities

• $70 million in 2023-24 to support the number of children and young people in non-family-based care placements
• $16.4 million over four years in additional support to the RSPCA to provide compliance activities, welfare assessments and assist in the enforcement of animal welfare provisions.
• $5.6 million over four years for additional staff to the Office of the Public Advocate
• $4.6 million over four years to perform the statutory functions of the Guardian for Children and Young People, Training Centre Visitor, and Child and Young Person’s Visitor.
• $4.4 million over four years for the continued appointment of an additional Coroner and associated support staff in the Coroner’s Court
• $4.3 million over four years to improve the outcomes of children living in the northern suburbs through place-based, collaborative and coordinated approaches, designing the solutions they need.
• $2.6 million over four years for early intervention and prevention of youth violence within African South Australian communities including supporting the African Communities Council of South Australia to deliver community programs
• $1.8 million in 2024-25 to support the acquisition of a parcel of land in Mitchell Park to enable the development of a purpose-built community hub, managed by not-for-profit community organisation MarionLIFE
• $1.6 million over three years for the extension of the multi-agency response to support the safety and wellbeing of remote Aboriginal visitors, residents and businesses in Adelaide and regional South Australia
• $992 000 in 2023-24 to conduct the Dunstan by-election
• $1 million over four years to support veteran community programs
• $250 000 in 2024-25 to support a municipal service review and development of an asset management plan
• $175 000 in 2024-25 for the Ukrainian Community Support Project

Policing & Justice

• $36.7 million getting police back to front line duties
• $19 million over four years for an online system to provide a range of services currently only available from a police station.
• $9.3 million over four years to facilitate the redeployment of 24 police officers into priority operational policing duties by civilianising various administrative and support positions in SA Police.
• $8.5 million over four years to accelerate a new telephone resolution desk
• $25.3 million over four years to deliver the National Firearms Register
• $18 million over four years to construct a new purpose-built police station in Naracoorte
• $16.6 million over five years for Consumer and Business Services to expand the licensing, compliance and enforcement functions
• $5.8 million over four years for the ongoing maintenance and upgrade of the Justice Audio Visual Link network utilised by the justice sector.
• $5.4 million over two years to upgrade the electronic security components in the Kurlana Tapa Youth Justice Centre
• $5.1 million over four years to enable the continued operation of Lemongrass Place, and provide an alternative custody facility that supports Closing the Gap
• $4.8 million over four years to streamline the trial allocation process, improve training and develop and implement a wellbeing program for staff.
• $205.7 million over four years to construct 312 high security beds in recognition of increased prisoner numbers, which are expected to come online at the end of 2027.
• $21 million over two years to construct 40 additional residential beds in recognition of increased prisoner numbers.
• $3.4 million over four years to repurpose the former juvenile detention centre at Cavan
• $332 000 over four years to increase funding for Crime Stoppers SA to $300 000 per annum

Emergency Services

• $10.1 million in 2023-24 for the extension of aerial firefighting aircraft availability in line with bushfire risk and costs associated with significant fire events.
• $5 million over two years to undertake per- and polyfluoroalkyl substances (PFAS) testing and remediation of Metropolitan Fire Service (MFS) and Country Fire Service (CFS) facilities, as well as determine future requirements
• $2.8 million over three years to support the relocation of the Prospect SES unit to a new facility in Angle Park
• $817 000 over two years to undertake an audit of CFS facilities
• $450 000 in 2023-24 for the CFS to purchase two new 4WD quick response vehicles
• $435 000 over two years for the state’s Volunteer Marine Rescue associations to maintain their rescue capability

Environment

• $30 million over four years to help protect and conserve our iconic natural places, enhancing biodiversity outcomes, visitor experiences, and connection with nature.
• $26.3 million over five years to support River Murray operations, maintenance and monitoring programs to help sustain the ongoing health of the river system and surrounding environments
• $15.4 million over three years to construct a new acid drainage treatment plant at the former Brukunga mine site
• $13.7 million over three years to deliver infrastructure at the Lake Hawdon North wetland site to improve availability and quality of the habitat for target waterbird species that inhabit the Coorong
• $2.5 million over two years to continually improve the management of the Lower Lakes, Coorong and Murray Mouth, Chowilla Floodplain and the River Murray Channel
• $1.1 million over two years to continue clean up and remediation works on Crown Land infrastructure following the River Murray flood event
• $14.3 million in 2024-25 to commence restoring West Beach and to start trials to evaluate the suitability of nearshore dredging as a long-term recycling option
• $6.4 million in 2024-25 to enable the continued replenishment of sand at West Beach and other Adelaide coastal areas whilst the works associated with the Adelaide Beach Management Review are completed
• $200 000 in 2024-25 for education and community engagement and to plan, implement and deliver strategies to help increase and diversify participation in recreational fishing activities including RecFish SA’s ‘Reel Women’ fishing diversity program

Safety and Security

• $1.5 million over two years to establish a central response unit to address and coordinate information requests and across government effort associated with the Royal Commission.
• $3.3 million in 2024-25 to ensure the continuation of a number of innovative domestic violence pilot programs
• $12.2 million to recruit 38.6 FTE new front line community workers under the 500 Workers initiative over 2022-26
• $3.4 million to trial new projects that support men and boys to examine, and change, their behaviour under the Innovative Perpetrator Responses initiative over 2022-27

Further Information

For more information, please contact Hawker Britton’s Associate Director, Stephen Halliday on +61 418 808 799 or Managing Director, Simon Banks on +61 419 648 587.

Further Hawker Britton Occasional Papers are available here.