What’s on Vincent Tarzia’s State Budget wish list?
On Budget Eve, InDaily spoke with the alternative premier about how he’d spend the state’s money.
Forecasting the specifics of the State Budget is always fraught.
There’ll usually be one or two surprises hidden away, and the big measure of the day is usually saved for a newspaper front-page splash on the morning of.
Not to mention the costings and debt figures the government would rather we didn’t dig out during lockup, which will be repeated ad nauseum for the following week back to the Treasurer on morning radio.
But it’s safe to say the 2025/26 State Budget will be more of the same from the Malinauskas government: health, housing and cost-of-living.
Those themes are already apparent from what’s been announced so far, including the ‘Rent-To-Buy Affordable Housing Initiative’, $13.9 million for a mental health emergency program and $2.2 million for 24-hour pharmacies.
The trio of topics have defined the first-term Premier’s turn at leadership so far, and show few signs of easing up, as Opposition Leader Vincent Tarzia is often at pains to point out.
Health was the domineering theme of Treasurer Stephen Mullighan’s third budget one year ago, where he announced an extra $2.5 billion would be poured into the hospital system over the following five years.
As was the $266.2 million cost-of-living package, which delivered $243 concession payments to 210,000 South Australian households.
At the mid-year Budget review, the Treasurer announced he would spend a further $672.5 million to keep up with demand on the public health system.
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There, the Treasurer also announced the government was in surplus of $413 million in 2023/24 – $107 million more than what was predicted in June.
But spending, particularly on the state’s megaprojects like the Torrens to Darlington, will have an impact at some point.
As such, most recent estimates show net debt rising to $46 billion by 2027/28.
Last year, the Opposition called the debt situation a “bomb”.
Speaking to InDaily about tomorrow’s budget, Tarzia worried the government was borrowing at the expense of the next generation.
“Debt is spiralling. We’re worried about the government racking up more debt on the state credit card without a plan to actually address that,” he said.
“Especially when they’ve done things like gamble on the state credit card, like they have with the hydrogen plan.
“Using debt for productive infrastructure is one thing, but at the moment, the government seems to be accumulating debt but not offering delivery.”
The leader of the opposition said he expected to see record state debt in tomorrow’s budget, which is “putting a mortgage on young people’s futures”.
On his wish list is a “proper plan for when it comes to reducing energy prices”, and rebates for solar home batteries.
“We know they’ve wasted money on this hydrogen vanity project and we want to see a plan to put downward pressure on energy bills,” he said.
He’s found an unlikely ally in SA Greens leader Robert Simms on the solar battery subsidy front.
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Simms told InDaily that the government could scrap subsidies to fossil fuel companies to fund the measure, which would assist households and small businesses with power bills.
Pointing to Australia Institute research, the MLC claimed the government was spending nearly $100 million on subsidies for fossil fuel companies over the forward estimates; an amount he called “reckless”.
“Climate change is hurting our economy,” he said.
“The algae bloom crisis and the drought in SA have shown the impact that burning fossil fuels has on our economy & environment.
“Scrapping fossil fuel subsidies is the responsible budget choice for SA.”
While Tarzia wouldn’t agree with Simms approach to funding the battery scheme, his policy costed the proposal at $19-20 million.
“We’ve capped that and we think that’s a good level to start at,” he said.
“At the moment, we just want to see some level of solar battery incentive. Most of the other states around Australia have got it, the Federal Government have got a scheme in place, so we want to start with something modest like that.
“But I wouldn’t agree with Rob Simms’ proposal.”
Neither would he agree with Simms’ push to ban pokies in South Australia: “those debates have been had in the past”.
“I think we’re certainly open to reform when it comes to safe regulation, but we also acknowledge and appreciate the hospitality sector as a very important sector,” Tarzia said.
“These small businesses are under enormous pressure. They provide jobs to thousands of people in our state, but we’re certainly open to addressing harmful forms of gambling.”
Tarzia also said, if he were handing down tomorrow’s budget, he’d like to see further stamp duty relief for first-home buyers, the scrapping of the GP payroll tax, and funding for the Greater Adelaide heavy vehicle bypass.
“Also, immediate drought relief. I think an extension to that is consideration of no-interest or low-interest loans,” he said.
“Mental health support is welcome, but what they really need is cash flow support.
“We’re here to do our jobs as an opposition, but if we see a good idea and a good measure, we’re certainly open to supporting it if it’s in the best interest of our state.”
InDaily will be in the 2025/26 State Budget lockup tomorrow, and will publish a special edition newsletter in the afternoon.
