What’s in the 2026 South Australian State Budget?
Economic overview
The state government is forecasting a surplus of $189 million for this financial year, from a net operating balance of $223 million.
The net debt was projected to hit $53.6 billion by 2030.
GST revenue saw $225 million flow to government coffers in 2025–26, and was expected to bring in $794 million from FY26 until FY2029.
Surpluses were projected through forward estimates until 2029-30, with $285 million in FY27, $348 million in FY28 and $327 million in FY29.
Tax
- Payroll tax is expected to raise $2.1 billion by June 30, and by FY29, is expected to raise $2.6 billion for government coffers.
- Gambling revenue is expected to bring in $704 million this financial year. This result is $33 million higher than the forecast last year, due to higher-than-expected collections from hotel and club gaming machines.
- Stamp duty is expected to have brought in $1.7 billion for the government in the year ending June 30, with stamp duty waivers for first home buyers on new builds still applying.
What South Australians will be paying:
- The Emergency Services Levy will increase from $164.55 to $170.50 a year for residential properties in the Adelaide metropolitan area.
- Car registration will also go up, with a four-cylinder vehicle costing drivers $162 to register this year, compared to $157 last year. A seven-cylinder vehicle would cost $477, up from $462.
- Speeding fines would also be hiked, with drivers travelling less than 10 kilometres over the speed limit expecting to pay $215, up from $208. Driving by 20 kilometres over the speed limit would result in a fine of $987.
Cost of Living
- This year’s cost-of-living focus was on families, with a smiling mother with three kids on the front page of the budget books. Many of these commitments are spread across health and schools.
- For renters, $7 million over four years would go towards a portable rental bonds scheme. This would support people moving house to transfer their existing bond to their new property, with the government guaranteeing the amount of the original landlord.
- Over two years, $15 million would continue rolling out community batteries to lower electricity bills for about 10,500 low-income households.
- Eligibility for Seniors Card holders has been expanded with an $8.4 million package over four years to offer cost-of-living relief for thousands more seniors.
- The Seniors Card was previously only available to people over 60 working less than 20 hours a week. The changes remove working restrictions and would be available to all SA permanent residents aged 60 and over, and Aboriginal and Torres Strait Islander people aged 50 or over, from July 1.
- There was no annual increase to metroCARD fares this year, as the government committed to pausing any hikes until at least October 1, 2026. Once the freeze is lifted, travellers can expect to pay $4.75 for a single Adelaide metro ticket, up from $4.55.
Whyalla Steelworks
- A further $319 million over two years was allocated to continue supporting the sale of the embattled steelworks, now down to two bidders.
- This brings total funding to the steelworks to $1.087 billion, split evenly with the federal government.
Indigenous Affairs
- From 2026-27, $8.5 million over four years was allocated to establish a truth-telling Commission and progress a Treaty with First Nations South Australians.
- This initiative will be divvied out with $1.9 million annually from 2026-27.
- $1.5 million was also allocated this year to improve the way Aboriginal heritage applications are processed, due to increased demand. This includes seven full-time staff.
Health
Today’s budget revealed the Malinauskas government’s total health spend of $12 billion since it came to government in 2022 – $2 billion more than the record spend announced by the Health Minister last week.
A $1.7 billion figure over forward estimates has been committed to ensure hospitals meet demand.
Some of the key health spend included:
- $28 million over four years for a specialised mental health unit at the RAH
- $18.5 million over four years for SA’s first IVF rebate scheme, providing $2000 per IVF cycle for up to two cycles to make IVF treatment more affordable for families.
- $22 million for a new emergency department for Clare Hospital
- $15 million over four years for upgrades to Murray Bridge Soldiers’ Memorial Hospital
- $13.9 million over four years for a regional ambulance service
- $10 million over four years for dedicated women’s health clinics
Energy and Mining
- An extra $2.7 million investing expenditure will be spent in 2027-28 to support the delivery of 16 community batteries through the emPowering SA program. This initiative was expected to benefit 10,500 low-income households through an annual energy bill saving of 25 per cent off the default market offer with AGL Australia
- $250,000 will be spent over four years from 2026-27 for the expansion of the Landowner Information Service, which provides information to stakeholders on the project development process, key interaction points and the robustness of the regulatory process
- $4.9 million (including $1,287,000 in operating expenses and $750,000 in investing payments in the 2026-27 budget) would be spent over four years to reduce public safety risks at the Leigh Creek Coalfield site.
- $3.1 million will be spent over four years from 2026-27 for grants to accelerate mineral exploration and discovery.
Housing
- A housing package totalling $2.5 billion includes $500 million to purchase land and fast-track development, and $500 million for city apartments.
- A $50 million infrastructure fund would fast-track building 400 new homes by the end of 2027. The new homes are slated for Playford Alive, which the government said would be the first neighbourhood exclusively for first homebuyers in the country.
- The SA Housing Trust has $140 million in this budget to renovate 300 vacant public homes along with 200 supported accommodation places for tenants with complex needs.
- A $29.5 million Housing Skills Package would create 1000 new tradie pathways to boost the construction workforce through scholarships and apprenticeships.
- The government’s HomeStart initiative has $500,000 over two years to create an online hub for supporting first homebuyers.
Schools
- The rollout of three-year-old preschool has been brought forward with $624.5 million over five years, which includes opening eight new preschools, 20 integrated hubs and infrastructure upgrades at dozens more school sites. In 2027, more than 7500 three-year-olds would be able to start preschool under a $1.9 billion Flying Start package.
- $65 million will be spent over six years from 2026-27 to support introducing a second phonics check for Year 2, establishing a specialist pathway to increase the number of STEM teachers in government schools, introduce a new pathway to allow teachers to start working at government schools at the beginning of their degrees, expand professional learning opportunities for teachers and school service officers and roll out the autism inclusion program.
- $45.5 million will be spent over four years from 2026-27 to establish Out of School Hours Care at 68 government primary schools across South Australia, creating an additional 2300 places.
- $76 million will be spent over four years for programs aiming to keep kids off screens, including free school camps for Year 7 students, expanding the Student Volunteer Award program and expanding sports vouchers to include 16 to 18-year-olds from January 2027.
- $650,000 each year over four years for an annual Newshound media literacy digital learning program for every primary school across the state.
- $174 million for free public school from 2027 as a cost-of-living measure.
- $210,000 will be spent over six years (including $11 million in the 2026-27 budget) for school infrastructure, including $87 million for the redevelopment of Mount Barker High School, $12 million for a new gym and upgrades at Kilkenny Primary School and $10.8 million for upgrades to Kapunda High School.
- $126 million will be spent over four years from 2026-27 (including $10 million in the 2026-27 budget) and $24 million over three years from 2027-28 to create three new technical colleges, including one regional campus in Murray Bridge and two metro campuses in Marden and Gawler.
Police
- $300,000 will be spent in the 2026-27 budget for a new Crime Stoppers online reporting portal.
- About $2.8 million will be spent each year from 2026-27 to establish up to four drone base stations in metro Adelaide and nine across regional SA for SAPOL to undertake unmanned aerial surveillance and policing functions.
- $5 million (including $2.5 million in the 2026-27 budget) will be spent over two years from 2026-27 to undertake planning work for two new police stations at Mount Barker and Murray Bridge.
Public Service
For the next 12 months, a partial freeze would apply to the recruitment of non-frontline positions across all state government agencies, which the Treasurer said would save about $120 million annually.
The measure would result in 1000 fewer full-time equivalent staff, but would not involve forced redundancies, the government said.
Environment
- $750,000 will be spent each year from 2025-26 to Friends of Parks and Nature groups to undertake weeding, planting and seed collecting in national parks and across the landscape.
- $1.5 million will be spent each year from 2026-27 for native vegetation heritage agreements on privately managed properties to support improved biodiversity.
- $250,000 will be spent each year from 2026-27 for Landcare SA to employ a state land care coordinator and help with ground planting, weeding and other conservation work.
- $1.2 million will be spent in 2026-27 to improve the Heysen Trail by purchasing land near Cudlee Creek, so hikers no longer have to walk on a busy road, as well as for upgrades at Flinders Chase National Park.
- $250,000 will be spent each year from 2026-27 on the Pastoral Lands Unit to help with the completion of land conditional assessments in pastoral lands.
- $800,000 over two years will be given to the Kangaroo Island Landscape Board to support the eradication of feral cats on Kangaroo Island.
- $5 million will be spent over three years from 2026-27 for regional landscape boards to put in place a plan to clean and revitalise rivers and waterways.
- $55.9 million over five years will be spent on mass restoration of sand at West Beach.
Fuel
- The state government has established a strategic fuel reserve of 20 million litres of diesel for an unspecified cost to address fuel shortages caused by conflict in the Middle East.
- $300,000 will be spent each year for extra Consumer and Business Services inspectors to undertake an additional 100 fuel price compliance inspections a month.
- $4.4 million was spent in 2025-26 to support the Remote Area Energy Supply Scheme’s operational budget in response to fuel price rises caused by conflict in the Middle East.
Business
- $50 million will be spent over four years for a Research and Development Productivity Fund to increase the scale and impact of research activity in South Australia. The fund will aim to speed up the translation of research into commercial outcomes, as well as to support the adoption of new technologies and practices to improve productivity across the economy. It is hoped the fund will attract world-class researchers, innovative businesses and additional co-investment from domestic and international partners.
- $1.8 million will be spent over four years (including $450,000 in the 2025-26 budget) to double funding to the South Australian Business Chamber growth accelerator program to support businesses to compete in international markets.
Arts
- $49.3 million for the Tapangka state arts media precinct, to be spent by 2029. This was promised by the government ahead of the election and thr project would put the State Opera, State Theatre, Country Arts SA and the ABC under one roof.
- Adelaide Fringe would continue to be funded at its current levels – $1.5 million over four years. Total state government funding for the Adelaide Fringe was $20 million over four years.
Domestic, sexual and family violence
- $673.6 million over 10 years was allocated to respond to the recent Royal Commission into Domestic, Family and Sexual Violence (DSFV).
- $231.6 million would be spent between 2026 and 2029. The largest winner out of this funding pot was SA Police, who would receive $182.8 million to boost resourcing to establish a dedicated DFSV service.
- $82.6 million would provide new services to those experiencing violence, and $43.7 million would expand prevention programs.
- Access to forensic medical exams would also get a $36.2 million package, while a 24/7 central phone and online support service would cost $25 million.
Child protection
- An extra $100,000 over the estimated $20,000 allocated in the 2025-26 budget will be spent to increase the grant to Connecting Foster and Kinship Carers – SA Inc, which is the peak representative body for foster and kinship carers across South Australia.
- About $82,000 per year will be spent over the next four years to increase the grant to Grandcarers SA, which supports grandparents and other informal carers with financial assistance, personal support, information provision and advocacy.
- $350 million (including $97,000,000 in the 2026-27 budget) will be spent over five years from 2025-26 to support children and young people in care, which includes increasing the number being cared for in a family-based environment
Sports
- $5 million will be spent in the 2026-27 budget for upgrades at Karen Rolton Oval, including new lighting, accessible terracing and landscaping.
- $100 million (including $25,000,000 in the 2026-27 budget) for a new State Gymnastics Centre.
Emergency services
- $250,000 will be spent in 2026-27 to increase to $1 million in 2029-30 to Surf Life Saving SA.
Justice
- $52,000 will be spent in 2025-26 and about $645,000 each year from 2026-27 for an additional 60 monitoring devices and to manage the supervision of offenders across the state.
- $668,000 will be spent in 2025-26 and $5 million each year from 2026-27 for 59 temporary beds at Mount Gambier Prison until the expansion of Yatala Labour Prison is finished.
- $5.3 million will be spent over two years from 2026-27 to upgrade the air conditioning system at Port Augusta Prison.
- From July 1, 2026, mediation fees of $2000 will be introduced in the Supreme Court, while it will cost $1500 for mediation by a Judicial Officer in the District Court. This measure is expected to generate $170,000 in additional revenue each year.
Defence
- $26.8 million ($6,460,000 in the 2026-27 budget) over five years to build South Australia’s AUKUS skills workforce by supporting more than 1000 new university, trade and skill opportunities, including mechanical and fabrication engineering, electrical and electronic engineering, and maritime, nuclear and submarine naval architecture.
Road safety
- $18 million will be spent over four years (including $800,000 in the 2026-27 budget) for road safety upgrades along the Horrocks Highway.
- An additional $90 million (including $20 million in the 2026-27 budget) will be spent over five years from 2026-27 for the upgrade of the South Eastern Freeway. This includes replacing retaining walls and stabilising slopes.
- $16 million will be spent over three years from 2026-27 to upgrade the roundabout at The Chandlers Hill Road and Happy Valley Drive intersection, as well as installing a new roundabout at Windebanks Road and Happy Valley Drive.
- $80 million (including $17,500,000 in the 2026-27 budget) would be spent over five years to upgrade the Adelaide and Hawthorn Road Intersection, including signalisation and the widening of intersections, installation of new turning lanes and the widening of Adelaide Road.
Public Transport
- $100,000 will be spent in 2026-27, increasing to $150,000 each year from 2026-27 to expand the Footy Express bus service to Murray Bridge.
- $1.9 million will be spent in the 2026-27 budget to expand the metroCARD zone to Murray Bridge. This will increase to $1,948,000 in 2027-28, $1,996,000 in 2028-29 and $2,046,000 in 2029-30.
- The frequency of buses between Murray Bridge and Mount Barker and Murray Bridge to Adelaide will increase, with an operating expenditure of $1.9 million each year (indexed) from 2028-29 and an investing expenditure of $2.8 million in 2028-29.
- $7 million (including $500,000 in the 2026-27 budget) would be spent over three years to build a new Park ‘n’ Ride at Torrens Park railway station.
- $3.5 million (including $500,000 in the 2026-27 budget) will be spent over three years from 2026-27 for a battery-powered passenger train trial to operate on the Belair Line.
- $1,000,000 will be spent to pause the annual increase on metroCARD fares until at least October 1, 2026, to deal with fuel supply issues caused by the conflict in the Middle East.
Regional SA
- $250,000 will be spent in the 2026-27 budget to develop a comprehensive strategy to strengthen the long-term prosperity of the McLaren Vale region by supporting agricultural diversification, expanding market access for local producers and driving tourism investment.
- $200,000 will be spent over four years from 2026-27 to extend and expand the Project 250 wine program, with the aim of addressing current supply challenges, growing domestic market opportunities, sales and experiences, and improving competitiveness, prosperity and the sustainability of SA’s wine industry.
- $200 million will be spent on establishing a drought loan scheme to support grain and livestock farmers affected by drought in the Murray Mallee, Riverland and Upper North regions, who will have access to low-interest loans of up to $250,000.
