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State Budget overview

The 2017-18 State Budget records a $239 million surplus in 2016-17 and commits to $859 million in operating surpluses across the forward estimates.

Commitments include:

  • a $200 million Future Jobs Fund which will grow the jobs of today and create the jobs of the future
  • $2.2 billion in general government infrastructure spending for this year, leading to an overall investment of $9.5 billion over the next four years. This will support an estimated 5700 jobs on average each year.
  • $1.1 billion investment in health, including funding to upgrade the state’s suburban hospitals and a commitment to build a new Adelaide Women’s Hospital, connected to the new Royal Adelaide Hospital.

Two new schools will be built, under a public-private partnership, to meet demand arising from strong population growth in the north and south of Adelaide. Each school will accommodate 1400 reception to Year 12 students and 100 special school students and there will be a co-located 55-place children’s centre.

The State Government has also committed to its share of $674 million to get on with other key infrastructure projects including the next stage of the South Road upgrade between Pym Street and Regency Road and the second stage of the electrification of the Gawler rail line from Salisbury to Gawler.

This budget also commits $305 million for the first stage of the duplication of Main South Road from Seaford to Sellicks Beach, $15 million for new Park ‘n’ Ride facilities at Klemzig and Tea Tree Plaza interchanges and $3.5 million to upgrade the Blackwood roundabout.

The budget retains funds in contingency for the realignment of the Springbank, Goodwood and Daws Road intersection. The Department of Planning Transport and Infrastructure has commenced detailed design work to create a standard cross intersection. $22.4 million over four years has been committed to increase the frequency of train services on the Gawler, Outer Harbor, Belair and Seaford lines, including nights and weekends.

The budget fully funds the Energy Plan which will secure the state’s power supply and put downward pressure on prices, and commits an extra $8.2 million towards Stage 1 of the hydrogen road map.

A payroll tax rate of 2.5 per cent has been locked in for the state’s small business and the threshold for businesses eligible to receive tax cuts to a taxable payroll of $1.5 million has increased.

The Job Accelerator Grant program will now offer businesses up to an additional $5000, backdated, for each new apprentice or trainee they employ, increasing the total grant on offer to up to $15,000.

The state government is also committing:

  • $40 million over two years for the Fund My Neighbourhood program which will be one of the world’s biggest participatory-budgeting initiatives, allowing the community to direct how public funds are spent in their local area.
  • $20 million to synthetic playing surfaces grants
  • $14 million for the Women’s Sporting Facilities Fund
  • $4.5 million for the Stage 1 upgrade of Netball SA’s Priceline Stadium
  • $1 million for the South Australian Olympic Council.

The state’s courts will benefit from a $31 million upgrade to increase the number of jury court rooms and the jurisdiction of the South Australian Civil and Administrative Tribunal has been expanded with a further $6.1 million in funding. The budget also provides extra resources for the Coroner’s Court to help clear the backlog of cases.

There is an additional $38.3 million over four years to operate an additional 160 prison beds at Mount Gambier Prison, and $28.1 million over four years for programs to reduce reoffending.

The budget also introduces two new revenue measures:

  • a new South Australian major bank levy, which will be introduced from 1 July 2017, and apply to all authorised deposit-taking institutions that operate in South Australia and are liable for the Commonwealth Government’s major bank levy. It is estimated to deliver $370 million across the forwards estimates
  • a 4 per cent conveyance duty surcharge which will apply to residential property purchases by foreign buyers and temporary residents from 1 January 2018. This measure is estimated to raise $48.8 million across the forward estimates.

The 2017-18 State Budget papers are available at

Image Caption: The state budget focuses on jobs, health, education and neighbourhoods.

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