South Australian Budget 2010-11

The 2010-11 South Australian budget was introduced to Parliament this afternoon by Treasurer Kevin Foley.

South Australia is forecasting a $389 million deficit in 2010-11, but with a return to surplus next year.
While the Budget is partly focussed on delivering savings to offset lost revenue resulting from the impact of the Global Financial Crisis, it does contain a number of new spending measures, of which an overview is provided below.
Key numbers over the forward estimates
  • $167 million surplus in 2009-10;
  • $389 million deficit in 2010-11;
  • $55 million surplus in 2011-12;
  • $216 million surplus in 2012-13;
  • $370 million surplus in 2013-14.
Savings and revenue initiatives
Increases to mining royalties
  • A three-tiered system will replace the existing two-tiered system that charged 3.5 per cent for existing mines and 1.5 per cent for new mines.
  • The new  top rate of 5 per cent will apply to metallic and energy minerals, ores and concentrates including yellowcake uranium, iron ore and copper concentrate – this is in line with Western Australia.
  • The 3.5 per cent rate will continue for refined metallic products such as refined copper, gold and silver.
  • The existing concessional rate of 1.5 per cent for the first five years of new mines will increase to 2 per cent.
Public sector reform
  • To deliver savings of $308.5 million over four years, 3743 full time jobs will be reduced from the public sector.
  • This includes reducing the number of public sector executives by 20 per cent.
Other savings measures
  • $118.1 million over three years from efficient price reform across metropolitan hospitals to increase efficiencies;
  • $98 million over four years from a restructure of the Department of Trade and Economic Development;
  • $76.9 million over four years by reducing the eligibility for the First Home Bonus grants to the construction of new dwellings. The amount for new dwellings will also be doubled from 4000 to $8000;
  • $76.1 million over four years by reducing the number of consultative outpatient services provided in public hospitals;
  • $65 million over four years in departmental efficiencies in the Department of Transport, Energy and Infrastructure;
  • $56.9 million over four years from health corporate services reform relating to the integrated finance function, integrated workforce function and consolidation of ICT service;
  • $49.8 million over four years from the elimination of the regional petroleum subsidy scheme; and
  • $31.5 million in facilities management savings.
Key spending measures
  • $502.2 million over four years (in addition to $117.9 million in 2009?10) for additional resources for health services;
  • $111.0 million to implement strategies to achieve a four hour emergency department target for 95 per cent of cases where clinically appropriate;
  • $88.6 million to provide an additional 260 000 elective procedures across metropolitan and country hospitals;
  • $71.7 million over four years to upgrade the Women’s and Children’s Hospital, including $64.4 million for the capital upgrade, which includes eight new high level neonatal intensive care cots, two additional operating theatres, a new central sterilisation unit, room upgrades and a new medical day unit and dialysis unit;
  • $46.0 million over three years to upgrade and expand the emergency department and deliver a 36 bed rehabilitation inpatient unit at the Modbury Hospital;
  • $38.6 million over two years as part of the $125.0 million redevelopment of The Queen Elizabeth Hospital to provide a new emergency department, nine new operating theatres.
  • $60 million, plus a further $10 million to be allocated from the existing investing budget, to expand the capacity of four specialist government high schools: Adelaide High School; Glenunga International High School; Brighton Secondary School; and Marryatville High School;
  • $26.5 million to expand the network of children’s centres with the establishment of an additional 10 centres;
  • $16.0 million for non-government schools to support the development of skills and knowledge in science and mathematics, to address behaviour management, and support students with English as a second language.
Transport, energy and infrastructure
  • $445.5 million for the duplication of the Southern Expressway from Darlington to Old Noarlunga, including a grade separated interchange at Darlington;
  • $36.1 million over four years for additional buses and bus services across the existing metropolitan system and expansion in the outer metropolitan areas plus $5.2 million over four years for the upgrade and replacement of bus shelters;
  • $12.4 million over four years to expand the Rural Road Safety and Black Spot programs;
  • $12.0 million over four years for the Greenways and Cycle Paths project; and
  • $6.1 million over two years for regional road projects, including a $3.6 million state contribution towards the $18.0 million McLaren Vale Overpass project and $2.5 million for a road management plan and upgrade of the Highway One/Burgoyne Street intersection in Port Augusta.
  • $33.8 million over two years to meet the requirements of recent and expected extensions to the Exceptional Circumstances drought relief program by the Commonwealth Government;
  • $29.9 million over two years to refurbish the Port Bonython jetty;
  • $20 million over four years to establish a Riverland Sustainable Futures Fund;
  • $12.8 million in 2010-11 to tackle plague locusts in the spring of 2010;
  • $10.2 million over four years for the Plan for Accelerating Exploration (PACE 2020) to assist further exploration and mining developments in South Australia.