South Australia is predicting budget surpluses in the coming years. Photo: SA Department of Treasury and Finance.
South Australia’s Labor Government has announced that it forecasts a $1.4 billion operating surplus in the 2026-27 State Budget, with a healthy outlook for the coming years.
In a statement, the government said ongoing surpluses underpinned confidence in the state’s economy, providing greater certainty for business.
The budget shows a surplus for the current financial year of $189 million, more than $100 million above the forecast in the December mid-year review.
More surpluses are expected in subsequent budgets, with a 2026-27 net operating balance of $223 million, an expected surplus of $285 million in 2027-28, $348 million in 2028-29 and a 2029-30 surplus of $327 million.
“The Malinauskas Government has delivered a surplus in every budget we have handed down since we were first elected in 2022,” Treasurer Tom Koutsantonis said.
“Ongoing surpluses fortify us against economic shocks and unforeseen spending, and allow us to sustainably manage debt and retain strong economic credentials.”
The government went on to lay out the benefits of a healthy budget surplus, which it said protected the state against unforeseen challenges such as inflationary shocks related to international conflicts like the US/Israeli War on Iran.
Other issues include the Whyalla Steelworks, Nyrstar, rescuing Bedford, the algal bloom problem and the upcoming government response to the Royal Commission into Domestic, Family and Sexual Violence.
“This fiscal discipline has provided us the flexibility to respond to unforeseen circumstances: drought, an international fuel crisis, finding a new steelworks owner, saving Bedford and dealing with an unprecedented algal bloom,” Premier Peter Malinauskas said.
‘We are delivering these surpluses while delivering targeted tax relief and a record investment in productive infrastructure to set our state up for the growth opportunities to come.”
Since the 2025-26 mid-year budget review, GST and key state tax revenues have been revised across the forward estimates. The increase in GST grant revenue of $225 million in 2025-26 and $794 million over the period 2026-27 to 2029-30 reflects the stronger national pool of GST, as well as population share forecasts.
The government said increased payroll tax and conveyance duties reflected the continued strength of the property and labour markets.
