The South Australian State Government has reported a budget surplus of $413 million for the 2023/24 financial year, surpassing projections by $107 million since the June Budget.
This marks the second consecutive year the Malinauskas Labor Government has achieved a budget surplus, following three years of deficits under the former government. Treasurer Stephen Mullighan said the positive outcome was influenced by revenues from property transactions and motor vehicle taxes, which eclipsed expectations.
The government’s fiscal documentation displays an additional revenue of $450 million, though this has been slightly offset by an increase in expenditures totalling $342 million. The expenses were primarily directed towards critical services including health, police, child protection, and road maintenance.
Specific areas that contributed to the higher-than-anticipated revenue include sales of goods and services and higher regulatory fees, which were $163 million over projections. Taxation income was also $162 million higher, mainly from stamp duty on residential properties. Despite increased interest rates, the state’s property market continues to perform strongly.
Contributions from National Partnership payments boosted total Grant revenue, reaching $157 million above expectations. Yet, this was slightly tempered by a $80 million shortfall in GST revenue grants compared to what was projected.
Stephen Mullighan, while addressing the financial results, reiterated the government’s commitment to maintaining fiscal health, stating, “The Government has reconfirmed its commitment to getting the budget back into surplus, with this year’s result following last year’s return to surplus.”
He also highlighted that the state’s economy is outperforming national averages, which has helped increase revenues and provided the government with enhanced capacity to invest in significant services and major infrastructural projects. “Our economy continues to perform strongly compared to the rest of the nation, boosting revenues and giving more capacity to invest in better services and major infrastructure developments,” said Mullighan.
Looking forward, the state is set to embark on extensive infrastructural works, including the North-South Corridor tunnels and the construction of the New Women’s and Children’s Hospital, which are likely to benefit from the continued economic health and budget surpluses.
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