South Australia Hands Down 2026 Budget, Prioritizing Health and Infrastructure

South Australia's Treasurer Tom Koutsantonis delivered the re-elected Malinauskas Government's first state budget on Thursday, June 4, 2026. The budget outlines significant spending on health and infrastructure, while projecting operating surpluses despite rising state debt.

State debt is forecast to surpass $50 billion by the 2029-30 financial year. However, Koutsantonis assured that the debt remains "manageable," pointing to billions of dollars allocated to major projects like the new Women's and Children's Hospital and a key transport corridor through Adelaide. The budget also forecasts $1.4 billion in operating surpluses over the same period.

The budget prioritizes delivering on the Labor party's election promises, including making public education free for primary and high school students and accelerating housing supply. Health spending constitutes approximately one-third of the state's budget, with $1.7 billion earmarked over five years to address increasing demand within the public health system.

In the lead-up to the budget announcement, the government revealed plans to cut public service jobs, with about 1,000 full-time equivalent positions not being filled in the next 12 months to save $120 million annually. Additional funding was also announced for initiatives such as stamp duty concessions for survivors of domestic violence, support for first home-buyers, and expanding preschool access for three-year-olds.