The South Australian state budget has announced a freeze on public sector recruitment, cutting approximately 1000 jobs over the next year. This move is expected to save $120 million annually, targeting non-frontline positions. It is part of the Malinauskas Labor government's first budget following its decisive election victory in March.
Budget Measures and Investments
Alongside the hiring freeze, the budget includes several initiatives aimed at boosting the housing sector, improving education, and reducing ambulance ramping. Key measures include stamp duty relief for domestic abuse victims and downsizers, a $50 million housing development for first-time buyers, and funding for a treaty commission led by Aboriginal leaders.
Key Budget Highlights
- $174 million over four years to abolish fees at public schools.
- $50 million for a 400-unit housing development exclusively for first-home buyers in Munno Para, north of Adelaide.
- A $250 million loan scheme to reduce ambulance ramping and create 650 new aged care beds.
- Stamp duty relief for domestic abuse victims and those over 60 downsizing to properties worth up to $2 million.
- Expansion of the seniors card scheme to all people aged 60 and over, and Aboriginal and Torres Strait Islanders aged 50 and over.
- Funding for additional long daycare services to allow three-year-olds to attend preschool.
- $210 million over six years to redevelop and upgrade 37 public schools.
- $28 million for a mental health assessment unit at the Royal Adelaide Hospital.
Treasurer Tom Koutsantonis presented the budget to parliament on Thursday, emphasizing fiscal responsibility. He stated, "The 2026-27 budget lives within its means, the surpluses are genuine and debt to revenue rates are lower than previously budgeted."
Premier Peter Malinauskas described the budget as "modest" and "restrained," noting that there are no new taxes and no surprises for businesses. He said the government is honoring its commitment to not create new taxes to justify expenditure.
However, the budget faced criticism from One Nation's SA leader Cory Bernardi, who called it a budget of "bread and circuses." He argued that the handouts come at the cost of future generations, with an additional $4 billion in debt expected each year.
