Home is at the heart of the South Australian budget, with almost half a billion dollars to be spent on new affordable homes, public housing and help for almost 4000 first homebuyers each year.
Premier Peter Malinauskas said his government’s second budget was very much a health and housing budget with a focus on the cost of living as South Australia’s economic growth is forecast to soften from 2.5 per cent to 1.25 per cent this year.
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“Generally there is no bigger cost to a South Australian household than the cost of putting a roof over your head,’‘ he said.
The government unveiled a $474.7 million housing package for affordable homes and city apartments, 1140 more public houses and 25,000 new blocks in Adelaide’s north and south with an average price of $300,000 to address housing shortage and rental crises.
Stamp duty for first homebuyers would be abolished, adding to its ongoing First Home Owner Grant of $15,000 which would provide a combined benefit of $44,580 for people purchasing a new home valued up to $650,000.
This would benefit about 3800 first homebuyers each year, add to housing stock and support the construction industry, Treasurer Stephen Mullighan said.
“For young South Australians in particular when they’ve seen property values increase over the last 12 months in the order of 25 per cent, when interest rates are going up substantially… this budget gets them fairly and squarely back with home ownership in their grasp,’‘ he said.
Another $471.3 million will be provided for cost-of-living relief for already-flagged energy bill relief for households and small business and $44 million over five years to index government concessions in line with inflation.
The government unveiled a $249 million deficit for 2022-2023, in sharp contrast to the $233 million surplus forecast in the budget last year.
The deterioration was blamed on $2.3 billion in higher health costs to ease pressure on emergency departments, lower GST grant revenue and more than $100 million to assist people affected by the River Murray floods.
Budget forecasts slow growth
A surplus of $250 million is forecast for 2023-2024 and to increase to $639 million over four years.
Net debt is set to increase from $26 billion to $37.6 billion over the forward estimates.
The debt will go toward the $21 billion in public sector infrastructure, including $5.3 billion for the North-South motorway and $1.2 billion for a new Women’s and Children’s Hospital over four years.
An extra $2.3 billion was earmarked for health, in a continuing bid to ease pressure on the hospital system.
The Australian Medical Association welcomed the government’s recent commitments but said there was much still to be funded if South Australians were to receive the health care they needed now and in the coming years.
‘We cannot look past the ongoing code whites and ramping that continue to create system pressures,” state president John Williams said.
Peak welfare group the South Australian Council of Social Service urged the government to “keep spending boldly” to address social inequity.
The Liberal opposition similarly called for more action to ease hip-pocket pain.
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