South Australia State Budget 2018-19

How to be COVIDSafe when visiting Grant Thornton offices. Find out how

South Australia State Budget 2018-19

05 Sep 2018

South Australia State Budget 2018-19

Headline items from the budget include:

An estimated deficit of $397 million for 2017-18;
A $48 million budgeted surplus by the end of 2018-19;
Estimated State debt of almost $13 billion for 2017-18, growing to the budgeted $17 billion by 2021-22;
$11.3 billion for new roads and key infrastructure projects; and
$1.2 billion for health initiatives.

Major announcements

Major announcements made include:

Infrastructure and transport

$578 million Gawler Rail Electrification project ($615 million total project)
$439 over four years for community infrastructure
$354 million for Regency Road to Pym Street
$264 million for the Seaford to Aldinga Main South Road duplication ($305 million total project)
$315 million over four years for the Regional Roads and Infrastructure Fund, with guaranteed funding equal to 30 per cent of royalties
$109 million for the redevelopment of Lot Fourteen (former Royal Adelaide Hospital Site)
$89 million Port Wakefield Project
$82 million over four years for the Regional Growth Fund, Mobile Phone Black Spot funding and for Regional Development Australia Boards

Health

$800 million over five years to improve the sustainability and efficiency of the South Australian health system
$272 million for The Queen Elizabeth Hospital redevelopment
$140 million over 10 years for country hospital capital works and health infrastructure
$91 million for the Modbury Hospital upgrade
$40 million to reduce elective surgery waiting lists

Education

$515 million education spend increase
$692 million to upgrade schools, increase capacity and to facilitate the transition of Year 7 students to High School
$361 million for two new reception to Year 12 Schools in the metropolitan area and a secondary school in Whyalla
$261 million for two new birth to year 12 schools in northern and southern metropolitan suburbs (to be delivered via a public-private partnership)
$109.8 million over five years for TAFE SA for delivery of a new quality system and completion of remediation of qualifications

Social Responsibility

$454 million for residential housing
$360 million emergency services levy remissions over four years without affecting funding to emergency services
$169 million for 270 high security beds at Yatala Labour Prison and 40 beds at Adelaide Women’s Prison
$146.4 million to meet the total estimated cost of the National Redress Scheme to help heal the pain of those that suffered sexual abuse as children in government institutions
$30.9 million over two years to meet additional costs for children in care

Jobs and Other Economic Opportunities

$202.6 million over four years for the Skilling South Australia initiative to create up to 20,800 additional apprenticeships and traineeships (in partnership with the Commonwealth government)
$150 million over 10 years for regional economic opportunities and regional communities
$100 million over four years for the economic and business growth fund

Energy

$184 million to improve energy market reliability and improve electricity affordability
$150 million over four years for grid scale and household battery storage systems

State taxes changes

The budget delivers the following State taxes changes:

1. Payroll tax relief

Small businesses with a payroll of up to $1.5 million in taxable wages will be exempt from payroll tax from 1 January 2019.

Phased payroll tax relief will also be available for employers with a payroll of between $1.5 million to $1.7 million. Specifically, these employers will pay a tax rate that increases proportionately from zero per cent at $1.5 million in taxable wages to 4.95 per cent at $1.7 million in taxable wages.

All other employers will not be affected by any payroll tax changes.

In the meantime, the government will also continue the small business payroll tax rate measure introduced by the prior government until 31 December 2018. This measure provides small business with taxable wages between $600,000 and $1 million with a payroll tax rate of 2.5%, phasing up to the general rate of 4.95% for taxable wages above $1.5 million.

2. Land tax relief

The tax-free threshold will increase from $369,000 to $450,000 from 1 July 2020. In addition, a new 2.9 per cent marginal tax rate will be introduced (to replace the current 3.7 per cent rate) for landholdings between the current top threshold of $1.2 million to the new $5 million threshold.

Should you have any queries how the South Australia State Budget measures will impact you and your organisation, please contact your usual Grant Thornton advisor or the below contacts.

South Australia State Budget 2018-19

The new South Australian government handed down its first State budget on 4 September 2018. In his budget speech, Treasurer Rob Lucas emphasised that this budget focuses on the government’s “comprehensive reform agenda based on new priorities, projects and programmes”.

Headline items from the budget include:

State taxes changes

1. Payroll tax relief

2. Land tax relief

Should you have any queries how the South Australia State Budget measures will impact you and your organisation, please contact your usual Grant Thornton advisor or the below contacts.

For more information, please contact: