SA Budget 2026: Who Gains and Who Loses

Key Focus Areas of the 2026–27 South Australian Budget

South Australian Treasurer Tom Koutsantonis has introduced the 2026–27 state budget, highlighting a focus on reducing costs for families and ensuring stability for businesses. This budget comes just months after the state election, with minimal surprises and significant financial commitments to various initiatives. However, it also projects a rise in state debt, which is expected to exceed $53 billion by 2029-30.

Major Infrastructure Projects

Several key infrastructure projects have received funding, including:

Torrens to Darlington project: Continued funding includes $2.3 billion allocated for 2026-27.
South Eastern Freeway safety upgrade: $90 million is set aside for this initiative.
Horrocks Highway improvements: Another $90 million will be used for works in the Mid North region.
Mount Barker roads intersection: $80 million is earmarked for upgrades at this location.
Local community infrastructure: $29.7 million is allocated for various local projects.
Happy Valley Drive roundabouts: $16 million will be used for an upgraded and new roundabout.
Lefevre Peninsula transport planning: $15 million is dedicated to a business case and design for future transport infrastructure.
Torrens Park railway station: $7 million will fund a new park and ride car park.

Housing and Community Development

The budget includes several measures aimed at improving housing and community services:

Rent-to-own homes: $1.3 billion is allocated for 2,000 rent-to-own homes, including on surplus Defence Force land.
Housing Fast-Track Fund: $500 million is dedicated to this initiative, with the same amount allocated for an Apartment Fast-Track Fund.
Vacant housing renovation: $140 million will be used to renovate 300 vacant Housing Trust homes.
Stamp duty waivers: Concessions worth $77 million over five years will waive stamp duty for downsizers.
First home-buyer support: $50 million is allocated to accelerate construction of 400 houses for first home-buyers in Munno Para.
Housing Skills Package: $29.5 million will be used for scholarships, apprenticeships, and industry partnerships.
Portable Rental Bonds Scheme: $7 million over four years will establish this scheme.

Health and Social Services

A range of health and social services are also receiving funding:

Women’s and Children’s Hospital: Continued funding includes $508 million in 2026-27.
Aged care beds: $250 million is allocated for a no-interest loan scheme to deliver up to 650 new aged care beds.
Mental health assessment unit: $28 million will be used for a specialised unit at the Royal Adelaide Hospital.
Clare Hospital emergency department: $22 million is allocated, with $12 million beyond the forward estimates.
IVF rebate scheme: $18.5 million over four years will support this initiative.
Patient Assistance Transport Scheme: $16 million over four years will expand services for regional patients.
Murray Bridge Soldiers’ Memorial Hospital: $15 million is allocated for infrastructure upgrades.
Ambulance services: $13.9 million will be used to expand ambulance services in Ceduna, Yorketown, Millicent, and Barmera.
24-hour pharmacies: $13.2 million will expand the initiative in the west and north-east of Adelaide, as well as at Mount Barker.
Medical school training centre: $13 million will fund a training centre in Mount Gambier.
School redevelopment: $210 million over six years will be used for public school upgrades, including $87 million for Mount Barker High School.
Technical colleges: $150 million is allocated for three new technical colleges in Murray Bridge, Marden, and Gawler.

Education and Youth Programs

Education and youth programs are also highlighted in the budget:

Preschool access: 50 long day-care centres will provide preschool for three-year-olds starting next month, with an additional 140 centres offering the service from January.
Free school camps: $76 million over four years will fund one free school camp for all year 7 students.
After-school activities: Funding will cover before or after-school activities, come-and-try sessions for sport, dance, and music, and an expanded Sports Voucher Plus scheme.
Student support programs: $65 million over six years will be used for these initiatives.
Out of Hours School Care: $45.5 million over four years will expand services at 68 government primary schools.
AUKUS skills development: $26.8 million over five years will be used for this purpose.
TAFE expansion: $25.5 million will expand TAFE in Mount Barker.

Additional Financial Measures

Other notable financial measures include:

Public school fee abolition: $174 million over four years will be used to abolish fees at public schools.
Community batteries: $15 million over two years will be allocated for their rollout.
Adelaide Metro services: $11.7 million will expand services to Murray Bridge and provide more buses for the city.
Fare increase delay: The fare increase for Adelaide Metro has been delayed until October 1, costing $1 million.
Seniors Card expansion: The Seniors Card will become available to an additional 80,000 older South Australians from July 1, costing $8.4 million over four years.
Mount Gambier Prison capacity: $16.5 million will be used for additional capacity.
Police drones: $11.3 million over four years will be allocated for drones for SA Police.
Office of the Inspector: $4.3 million extra will be provided for oversight of anti-corruption bodies.
New police stations: $5 million will be used for new stations in Murray Bridge and Mount Barker.
Court improvements: No extra funding is allocated for improvements to the Supreme Court, Sir Samuel Way building, or the Adelaide Youth Court.
Court mediation fees: $700,000 in revenue is expected from new court mediation fees over four years.
Gymnastics centre: $100 million is allocated for a new state gymnastics centre.
Whyalla steelworks support: $319 million will be provided for support.
Drought loan scheme: $200 million is allocated for this initiative.
Business Growth Fund: $128.7 million in savings will be achieved by cutting the fund, with all existing commitments met.
Research and Development Productivity Fund: $50 million will be allocated for this initiative.
Leigh Creek coalfield: $4.9 million will be used for site management.

Cultural and Artistic Initiatives

Cultural and artistic initiatives are also included:

Tarrkarri Aboriginal Art and Cultures Centre: No funding is allocated for this project.
Arts and media hub: $49.3 million will be used for a new arts and media hub for the ABC and state arts agencies in 2029-30.
Truth-telling commission: $8.5 million will be allocated for a commission to undertake truth-telling and treaty activities.

Economic and Fiscal Outlook

The budget also outlines the state’s economic and fiscal outlook:

Debt growth: The state’s debt is expected to grow from $34.7 billion in 2025-26 to $53.7 billion by 2029-30.
Budget surplus: A surplus of $223 million is projected for 2026-27.
Revenue from fines: Revenue from fines and penalties is expected to grow from $177 million in 2025-26 to $315 million in 2029-30.
Housing and development fees: An extra $10.7 million in housing and development lodgement fees is expected over four years.
Public service reduction: The government will replace only one in two employees who leave non-frontline positions, saving $120 million annually and resulting in 1,000 fewer full-time equivalent back office jobs.

These measures reflect a comprehensive approach to addressing the needs of South Australians while managing the state’s financial responsibilities.