SA 2023-2024 State Budget

2023 – 24 South Australian State Budget

Introduction 

On Thursday 15 June, South Australian Treasurer the Hon Stephen Mulligan MP delivered the 2023-24 South Australian Budget.

This is the second Budget of the Malinauskas Government and aims to deliver on the government’s commitment to housing, health and cost-of-living relief while laying strong foundations for the state’s economic future.

The centrepiece of the 2023-24 Budget is an additional $2.3 billion over five years in health funding, a $474.7 million housing package, and $471.3 million in cost-of-living relief for South Australians.

The South Australian Economy

The 2023-24 Budget forecasts the South Australian economy growing by 3.5% in 2022-23, before slowing to 1% in 2023-24, impacted by a return to trend crop outputs and slower national economic growth.

Employment is expected to grow at 3% in 2022-23 with growth slowing in 2023-24 and 2024-25, returning to the longer-term average of 1% per annum from 2025-26.

The Budget is expected to record a deficit of $249 million in 2022-23, before returning to surplus in 2023-24 and increasing in following years.

Reference – Budget Overview

The complete 2023-24 Budget Papers can be found here. A summary of the 2023-23 Budget Papers, by portfolio is below. Please note that expenditure is in the next 4–5 year period.

For more information, please contact Hawker Britton Associate Director Stephen Halliday at [email protected], or Director Emma Ramage, on +61 430 811 929 or [email protected]

Cost of Living

The Malinauskus government’s priorities of housing, health and cost of living relief are addressed in this budget. $471.3 million in cost-of-living relief initiatives were identified and they include:

• $57.2 million in additional funding for non-government organisations.
• $44 million to increase existing concessions. This will bring relief to over 200,000 eligible South Australian households on low or fixed incomes.
• $32.1 million to increase carer payments.
• $12 million to continue a $100 subsidy for 120,000 government school students.

Housing

$474.4 million housing package to support the building of 3,600 homes (over next 5 years). Initiatives include.

• More public housing.
• Releasing 25,000 new blocks across Adelaide’s northern and southern suburbs.
• Delivering over 1,200 more social and affordable homes.
• Establishing an Office for Regional Housing and creating a Regional Key Worker Housing Scheme.
• Developing 111-129 Franklin Street, to be capable of housing 1,000+ people.
• Greater access to HomeStart’s Interest Free Starter Loan.
• Reforms to residential tenancy.
• The First Homeowner Grant Property Value Cap will be increased.
• HomeStart will introduce a new home loan with 2% deposit.

Energy Bill Relief

$254.4 million in energy bill relief for pensioners and eligible families.

Health

$2.3 billion over 5 years – additional investment in health.

• $100.8 million to ensure the new Mount Barker Hospital meets the needs of the community.
• $67.8 million to expand virtual care services for adults, and $30.8 million for children aged between 6 months and 18 years.
• $56.4 million to support health workers with access to cheaper parking.
• $31.5 million to establish the State Health Control Centre.
• $31.1 million to extend and deploy the Electronic Medical Record program across all regional Local Health Network hospitals.
• $27.6 million to increase medical staffing in major hospitals on the weekends.
• $22.3 million to continue operation of transitional accommodation for NDIS patients.
• $20.1 million to upgrade the Paediatric Intensive Care Unit.
• $20 million to build and upgrade ambulance stations.
• $17.6 million for individual patient support, to enable the discharge of long-stay patients from hospitals.
• $15 million to establish a cancer genomics laboratory, as part of the Australian Cancer Research Foundation Genomics Facility.

Women’s Statement

The Malinauskas government is committed to tackling gender inequality and promoting safety, wellbeing and equality for women and girls. A range of programs will be implemented to support economic wellbeing, leadership and participation, women’s safety and security, and women’s health.

Indigenous Communities

In March 2023 South Australia became the first state to establish a First Nations Voice to Parliament. The government has made a financial commitment to support the ongoing operations of the First Nations Voice to Parliament, and other initiatives for Closing the Gap and wellbeing programs.

Child Protection

Reducing the number of children and young people in care requires a coordinated and considered approach across government, the community, and the child protection system. The Government is investing $216.6 million in child protection community and early intervention services.

Education & Skills

$155.6 million in education and $63.8 million new skills initiatives.

• $100.2 million in government school and pre-school upgrades.
• $35 million for student wellbeing programs.
• $15.8 million to replace regional school buses.
• $28 million to address current and emerging skill shortages and support training.
• $12.2 million to establish a Regional Skills Development Fund.

Jobs & Economy

$186 million to strengthen the SA economy. $5.5 million to support the implementation of the AUKUS submarine construction program.

• $33 million to repurpose the government’s commitment to the Australian Space Park proposal.
• $25.4 million to support the National Collaborative Research Infrastructure Strategy facilities.
• $20 million for the Research and Innovation Fund.
• $13.5 million for the extension of the SA video game redevelopment rebate scheme.

Digital Investment Fund

$200 million to drive strategic and targeted investment in cyber security and digital initiatives across the South Australian public sector.

Infrastructure

$21 billion public sector infrastructure spend. Major initiatives include:

• $348.9 million for new facilities to support the Forensic Science SA and SA Police Forensic facilities.
• $55 million in additional funding to build a new Adelaide Aquatic Centre.
• $30 million to upgrade prisoner accommodation and staff facilities at Port Augusta Prison.
• $20 million to address the condition of state jetties, and $15 million to repair Railway Station Roofs.

Road Safety, Roads & Public Transport

$98 million road safety package and capital improvements to include:

• The Mount Barker roundabout upgrade.
• New road safety cameras.
• Regional road safety treatments.
• Regional bus services.

Justice

$102.4 million for additional resources for the Police. Initiatives to recruit additional Police Security Officers and accelerate the recruitment by increasing the number of courses available will be put in place.

Emergency Services & Flood Response and Recovery

$26.7 million to secure additional aircraft to enhance the state’s aerial firefighting capability. $142.8 million in programs that include emergency accommodation assistance, clean-up and waste program, small business recovery grants.

Primary Industries & Environment

Initiatives including Fruit Fly Eradication Response, Snapper Fishery Management and Future Drought Fund are included in the Budget.

Regions

$588.4 million in new measures supporting regional South Australia. Many of the initiatives are summarized in the portfolio area.

Major Events, Sporting & Arts

$70 million in programs to support major events, the arts and racing industry.