SA Budget 2016-17
7 July 2016
OVERVIEW
South Australian Treasurer Tom Koutsantonis delivered his third budget today, confirming a focus on health and education spending, and job creation. The 2016-17 Budget confirms a surplus of $258 million for 2015-16 and predicts a surplus of $254 million for 2016-17, with projected surpluses totalling $1.5 billion over the next four years.
Treasurer Koutsantonis said today’s Budget brings South Australia “back in the black” and demonstrates the State’s budget position is “sound”, while also providing a buffer against economic uncertainty and a clear plan for the transition to a “high-tech modern economy” following the end of local automotive manufacturing. The Treasurer also confirmed that almost 6,000 jobs have been created in South Australia over the past 12 months, while the Budget predicts employment growth of 0.75 per cent in 2016-17. The Treasurer also said the Government is “pulling every lever available to create new jobs” and considers the unemployment rate to be unacceptably high.
The centrepiece of this Budget is a $109 million Jobs Accelerator Grant scheme designed to provide incentives for small and medium-sized businesses to hire additional staff members. The Budget also features $50 million to extend Adelaide’s tramline and an investment of $250 million for building and upgrades to science, technology, engineering and mathematics (STEM) facilities in 139 public schools.
An increase to the State’s solid waste levy over the next four years features in the Budget, which is estimated to create $64 million in additional revenue. As previously announced by the Treasurer, the Budget also introduces a new 15 per cent “place of consumption” gambling tax on the net wagering revenue of all betting companies offering services in South Australia, which is expected to raise $9.2 million in annual revenue.
KEY PARAMETERS
- Budget surplus of $254 million in 2016-17, reaching $466 million by 2019-20
- Net debt of $6.2 billion in 2016-17, which includes $2.5 billion for the new Royal Adelaide Hospital that appears on the balance sheet for the first time this financial year
- Economic growth of 2 per cent estimated for 2016-17, increasing slightly to 2.25 per cent in 2017-18
- Employment growth of 0.75 per cent in 2016-17, increasing to 1 per cent in 2017-18
- Total revenue of $18.2 billion in 2016-17, with expenditure totaling $18 billion.