The SA Government predicts another budget surplus. Photo: Parliament of South Australia.
The South Australian Labor Government is forecasting an $18 million budget surplus in 2024-20205 and has predicted surpluses every year across the forward estimates.
In total, the 2025-2026 budget provides $4.3 billion over the period 2025-2026 to 2028-2029, in addition to $1 billion in 2024-2025 for new expenditure initiatives and revenue measures to support key priorities of the government.
This represents the third consecutive Malinauskas Labor surplus.
A further $179 million surplus is predicted for 2025-2026 and $369 million for 2026-2027.
The forecast budget surplus for this year was a whopping $201 million but has been drastically reduced due to drought relief and spending on the Whyalla Steelworks.
The government stated that part of the advantage of surpluses was the ability to respond to such challenges.
“The 2025-26 State Budget continues the Malinauskas Labor Government’s record of strategic investment balanced with fiscal discipline,” South Australian Treasurer Stephen Mullighan said.
“Posting three consecutive surpluses gives the government greater flexibility to respond swiftly to unexpected events, such as the Whyalla rescue and drought relief packages.
“Maintaining a budget surplus also allows the state to keep debt at a manageable level as we invest in the projects of the future such as the completion of the non-stop North-South Motorway and the new Women’s and Children’s Hospital.”
Non-financial public sector net debt is projected to grow to $48.5 billion by 2028-2029. This debt helps fund critical productive infrastructure such as the Women’s and Children’s Hospital and the South Rd tunnels.
For the financial year to date, net debt is $2 billion lower than was forecast in the last budget of the previous Liberal government and the South Australian Government says the state’s finances have improved during Labor’s term.
Since the 2024-2025 mid-year budget review GST grant revenue has been revised up by $189 million in 2024-20 25 and by $386 million over the period 2025-2026 to 2027-2028. The government stated the change largely reflected the outcome of a stronger national GST pool and changes to the South Australian population share forecasts in the next Commonwealth Budget.
The government also stated South Australia’s credit rating had improved and was under a “positive credit watch”.
