The South Australian 2025‑26 State Budget was delivered on Thursday 5 June 2025 by the SA (Labor) Treasurer, the Hon Stephen Mullighan MP
The 2025-26 South Australian Budget is characterised by targeted support for households and investment in future growth. While it entails a short-term increase in deficit and debt, the focus on housing, cost of living relief, and economic development is designed to deliver long-term benefits for the state’s residents and economy.
Below is a summary of the most significant allocations and their implications for the state’s finances.
Housing Initiatives
Social and Affordable Housing Expansion:
The government has committed over $1.1 billion to increase the supply of social and affordable housing. This includes funding for new dwellings, upgrades to existing public housing, and incentives for private sector participation in affordable housing projects.
First Home Buyer Support:
Stamp duty relief and grants for first home buyers have been expanded, aiming to make home ownership more accessible for South Australians entering the market.
Homelessness Response:
Additional resources are allocated to homelessness services, with a focus on early intervention and support for vulnerable groups.
Implications:
These investments are expected to help address housing shortages, support construction jobs, and provide relief for low- and middle-income households. However, the scale of funding means a significant portion of new expenditure is directed to capital works, with long-term benefits for the state’s housing stock.
Cost of Living Relief
Energy Bill Support
The Budget provides direct energy bill relief for eligible households, including additional concessions and targeted rebates for pensioners and low-income families.
Public Transport and Utilities:
Fare freezes and subsidies for public transport, as well as continued water and sewerage concessions, are designed to ease day-to-day expenses for families.
Health and Education
Increased funding for public hospitals and schools, including measures to reduce out-of-pocket costs for families (e.g., free school supplies for low-income students).
Implications
These measures are intended to provide immediate financial relief to households facing rising living costs. While they support community wellbeing and economic participation, they also add to recurrent expenditure, requiring careful management to avoid structural budget pressures.
General Economic Welfare and Jobs
Skills and Training
Significant investment in TAFE and vocational education, including fee-free courses in priority industries, aims to address skills shortages and improve employment outcomes.
Business Support
Targeted grants and tax relief for small and medium enterprises, particularly in the construction, manufacturing, and renewable energy sectors.
Infrastructure Investment
Continued funding for major infrastructure projects, including roads, public transport, and health facilities, is expected to drive job creation and boost productivity.
Implications
These initiatives are designed to stimulate economic growth, support job creation, and build capacity in key sectors. The focus on infrastructure and skills is likely to have positive multiplier effects on the broader economy.
Underlying Budget Position
Budget Deficit and Debt
The 2025-26 Budget projects a modest operating deficit, reflecting the government’s decision to prioritise cost of living relief and investment in essential services. Net debt is expected to rise in the short term, primarily due to increased capital spending on housing and infrastructure.
Fiscal Sustainability
The government has outlined a pathway to return to surplus over the forward estimates, relying on continued economic growth, prudent expenditure control, and improved revenue from a strengthening labour market.
Implications
The Budget strikes a balance between immediate support for households and longer-term investments in economic capacity. While the increase in debt is notable, it is largely directed towards productive assets. The government’s fiscal strategy aims to ensure that spending is sustainable and that the state remains well-placed to manage future economic challenges.
Revenue Measures
The Budget did not announce any new taxes, levies or duties, or any changes to existing taxes, levies or duties administered by RevenueSA.
ADDITIONAL INITIATIVES
- The state government, in partnership with the Commonwealth Government, has announced a $2.4 billion joint package that seeks to secure the long-term future of the Whyalla steelworks and support the Whyalla community. The package:
- provides immediate on the ground support for the Whyalla community through an emergency response package that includes infrastructure upgrades (including upgrades to the Whyalla airport), creditor assistance payments, local business support grants and a jobs and skills hub (approximately $100 million)
- stabilises the steelworks, by funding its operations during administration, ensuring that workers and contractors will have ongoing work at the steelworks and will continue to be paid ($384 million)
- will invest in the steelworks’ future by working with a new owner to invest in upgrades and infrastructure to ensure the steelworks’ operations has a sustainable long-term future ($1.9 billion)
The 2025-26 Budget also provisions around $390 million over five years (to 2029-30) in state funding to partner with the Commonwealth Government and support a new owner of the steelworks to invest in the necessary infrastructure upgrades to modernise the steelworks and ensure its future sustainability.
The Commonwealth Government has announced a bid to host the 31st Conference of the Parties (COP31) under the United Nations Framework Convention on Climate Change climate summit. These annual meetings bring together world leaders to assess progress on climate change and negotiate solutions, particularly around adaptation to climate impacts. This initiative provides $8.3 million over two years from 2024-25 to support South Australia's preparation for Adelaide to host COP31 in November 2026, should the Commonwealth Government be successful in its bid.
This budget provides additional drought support measures at a cost of $55.4 million over the five years to 2028-29. The package builds upon the $18.0 million in initial assistance announced by the state government in November 2024, taking the total drought assistance available to $73.4 million.
This initiative provides $30.7 million over two years from 2026-27 and $35.7 million per annum (indexed) from 2028-29 for additional sworn police officers to support the demand for frontline policing, and time-limited funding of $3.4 million over four years from 2025-26 for a team of six FTEs to support the recruitment of the additional sworn officers. Together with the expanded police motorcycle capacity initiative, this will increase sworn officer numbers by 243 FTE by 2028-29 (and a further 83 FTE outside of the forward estimates) to reach a target of 5000 sworn officers by 2030-31.
This initiative provides investing expenditure of $29.6 million over two years and operating expenditure of $17.3 million over four years from 2025-26 for the purchase, implementation and ongoing operation and maintenance of additional road safety cameras. This includes mobile phone detection cameras, red light speed cameras at high risk locations and a point-to-point camera to be located on the South Eastern Freeway.
This initiative provides up to $3.0 million in 2024-25 to support South Australian dairy farmers impacted by the collapse of Beston Global Food group.
Grants will be available to eligible dairy farmers listed as creditors in the Beston liquidation process, to enable them to invest in farm modifications, pay invoices or accounts or reduce working capital debt facilities.
The scheme will provide support for around 40 affected dairy farmers.
FOR MORE INFORMATION
If you would like to discuss how the changes will impact you or your business, please contact Devika Shivadekar and Mira Brewster
More information is available at:
Also, see SA Budget 2025-26 Media Releases here:
- Budget prepares for Adelaide to host major COP31 event
- Enhancing police safety with a new weapon
- $5 million State Budget boost to support local exporters amid global trade disruption
- Budget boost to keep your commute safe | Premier of South Australia
- State Budget to deliver more police on more motorcycles
- Funding to improve security at prisons
- SA rules out taking equity stake in Whyalla steelworks