SA Budget 2019-20: At A Glance

Taking advantage of low interest rates and following in the footsteps of our mainland counterparts, South Australia will increase debt by $7 billion over the next four years to fund a massive $11.9 billion infrastructure spending program.
 
The second Marshall Government budget — and the sixth for Mr Lucas — whilst short on surprises, looks to save money across a range of portfolios and programs, with select areas of Government spending increasing. Here’s our rundown of the key measures. 

 State Taxes
  • A reduction to the top land tax rate from 1 July 2020
    The existing top land tax rate for ownerships above $5 million will be reduced by 0.1 percentage point each year from 3.7 per cent in FY20 to 2.9 per cent in FY27. Once the staged reduction in land tax rates is complete, the top marginal rate will be 2.9 per cent.
  • Land tax aggregation and trust surcharge from 1 July 2020
    A crackdown on those who use separate companies and complex trusts to own different land parcels. Going forward legal structures will be scrutinised to determine the ‘true owner’ of land for land tax purposes.
  • Payroll tax
    Funding will be provided for RevenueSA to undertake additional payroll tax compliance programs focusing on businesses who have failed to register for payroll tax, the grouping of businesses, the use of contractors and other high risk areas.
     

Economic and Business Growth
 
  • $60m for construction of International Centre for Food, Hospitality and Tourism Studies on Lot Fourteen
  • An extra $3.4 million to lift the number of business migrants coming to the state by 1000 in number.
     
  • Road and utilities infrastructure for Thomas Foods
     
  • South Australian Landing Pad investment of $4m over 4 years to attract international and interstate companies for innovation and job creation in priority industries.
     
  • A targeted $105 million package to help builders, trades people and home buyers in the housing market. Includes $43 million to upgrade older SA Housing Authority stock and deposit gap loans up to $10,000 for lower-income borrowers seeking loans via HomeStart (available from 1 September 2019 for 2 yeas).
     
  • Space industry start-ups will be given an extra $600,000 over two years to help international space companies establish a presence at Lot Fourteen.
     
  • Funds to facilitate construction of the Aboriginal Art and Cultures Gallery at Lot 14, plus additional funds to update storage facility of collections.
     

Infrastructure
“If this budget were a person, it would be wearing overalls and a high-vis vest"
Treasurer Rob Lucas

 
  • Roads and transport​
     
    • $692 million for new road infrastructure projects. 

    • An additional $75.5 million will go towards road works including resurfacing on the Sturt Highway, Barrier Highway, Eyre Highway and Princes Highway.
       
    • As announced before the budget, additional funding has been locked in over the forward estimates for the North-South Corridor between the River Torrens and Darlington, with the Federal Government to provide half the funds.
       
    • Funding for the Gawler rail electrification and park and ride facilities on the O-Bahn Busway.                  
       
    • Note: There was no mention in the Budget papers of a privatisation of the state’s rail fleet – despite earlier suggestions from Marshall and Transport Minister Stephan Knoll that the Government was open to the idea.
  • Health
     
    • $550 million for the construction of the new Women's and Children's Hospital, with an estimated completion date of 2025 (at the earliest).

    • Reactivating the Repatriation General Hospital site as a health precinct will come at a cost of $69.1 million over four years, with $5 million in 2018-19 to establish a statewide eating disorder service.

    • Stage three of the Queen Elizabeth Hospital redevelopment will receive an investment of $264 million.

    • $97 million will be provided for upgrades and services at the Modbury Hospital, including a new acute surgical ward for more complex elective surgery.

    • Additional funding of $6.7 million in 2019-20 to support the finalisation of the state's transition to the National Disability Insurance Scheme (NDIS).
       
  • Education
     
    • 3 new government schools in Whyalla, Munno Para and Sellicks Beach/Aldinga.

    • Redevelopment Berri Senior Campus of Glossop High School.

    • Additional funding for TAFE.