South Australians will receive significant cost of living relief in the Federal Budget which also reinstates funding for road upgrades in the Adelaide Hills, and makes further investments in skills training for the housing construction and naval defence industries.
The previously-announced stage three tax cuts, delivering an average saving of nearly $1,900 to each worker, are now joined by a $300 energy rebate, expected to benefit approximately 800,000 SA households.
The Malinauskas Government also welcomes:
- A 10 per cent increase in Commonwealth rent assistance;
- $3 billion to deliver cheaper medicines;
- The waiving of $3 billion in student loans under the Higher Education Loan Program providing debt relief for students;
- $2.8 billion to strengthen Medicare including $882.2 million to support older Australians avoid hospital admission or be discharged from hospital earlier;
- $1 billion in 2023-24 to fund urgent and significant enabling infrastructure to increase housing supply.
SA will benefit from an upwards revision to GST grants with an additional $162 million this year and $35 million in 2024-25 compared to estimates in the state's Mid-Year Budget Review. The future year impacts will be considered as part of the 2024-25 SA Budget.
The Commonwealth has revised down its forecast national GST pool growth from 5.7% to 2.5% in 2024-25, which is lower than the inflation forecast, indicating a significant softening of consumption across the national economy over the coming year.
Infrastructure funding for SA in the federal budget is significantly above our population share, with funding for the $15.4bn Torrens to Darlington project reaffirmed. The budget reinstates interchange upgrades at Mt Barker and Verdun, projects strongly advocated for by the Malinauskas Government.
There is also $100 million for the South Eastern Freeway Upgrade.
The federal budget provides $101.8 million for workforce development initiatives to support nuclear-powered submarines construction at Osborne. The funding includes $68.4 million over seven years for initiatives delivered through the new Skills and Training Academy at Osborne.
South Australia is well-placed to benefit from the $22.7 billion allocated to the Future Made in Australia package of to accelerate investment in priority industries, including renewable hydrogen, green metals and low carbon liquid fuels, including $6.7 billion in Hydrogen Production Tax incentives.
The government has committed $566.1 million to map critical mineral resources across Australia's which has the potential to unlock further mining development in South Australia.
As put by Stephen Mullighan
The budget's focus on cost of living relief will be welcomed by workers receiving the stage three tax cuts, households getting energy bill relief and increases to rent assistance and cheaper medicines.
The Malinauskas Government also welcomes the reinstatement of interchange projects at Mt Barker and Verdun which will provide meaningful improvements for motorists and residents.
The Malinauskas Government has advocated loudly for hills residents since funding was removed from the projects last year.
South Australia has retained a relatively large slice of infrastructure spending.
Large scale projects such as the tunnels and more broadly, the building of nuclear-powered submarines at Osborne, are testament to our strong working relationship with the federal government and its confidence in SA.
