MYBR For 2016-17 Provides A Strong Platform To Invest In Other Projects

MYBR For 2016-17 Provides A Strong Platform To Invest In Other Projects

South Australia Treasurer Tom Koutsantonis

Surpluses Maintained While Investing In Jobs Health And Education

Victor P Taffa

Mid Year Budget Review (MYBR) forecasts continued surpluses over the forward estimates, with the Government to invest in infrastructure, health, education and child protection.

“This has been a challenging MYBR after the Liberal Party broke 160 years of convention and blocked the Budget Measures Bill, resulting in the loss of $370 Million in revenue from the Major Bank levy that was earmarked to support job creation.” Treasurer Tom Koutsantonis said.

“We’ve cut our cloth, however, and have maintained forecast budget surpluses over the next 4 years. This follows successfully delivering a Budget surplus of almost half-a-billion dollars in 2016-17.”

MYBR invests $1.1 Billion in additional initiatives, supporting local jobs. This investment includes:

  • $372.6 Million over the forward estimates as part of the $692 Million Building Better Schools Infrastructure Program
  • $200 Million for the duplication of the Joy Baluch AM Bridge in Port Augusta
  • $82.4 Million for upgrades and additional services at Modbury Hospital
  • $467.4 Million over 4 years will be provided to meet increased demand in our hospitals
  • $159.1 Million in additional funding over the forward estimates will support children in care
  • $130 Million has also been committed for stage 2 works to continue the duplication of South Road from Aldinga to Sellicks Beach.

State Government will implement an efficiency measure of $370 Million over 4 years across Government agencies, to make up for revenue lost as a result of the Liberals blocking the Budget Measures Bill, which included the Major Bank Levy.

Measure will apply to back office activities and will not impact frontline employees such as nurses, doctors, teachers, ambulance officers, firefighters or Police.

Increase in the Foreign Investor Surcharge from 4 % to 7 % and larger than forecast receipts from payroll tax will also contribute additional revenue to the Budget.

“Our economy is performing well, with report after report showing we are ahead of our competitors interstate. Last year South Australia’s Gross State Product increased by more than any other state on per capita terms up 1.6 % compared with the national rate of 0.4 %.” Treasurer Tom Koutsantonis said.

Surplus in 2017-18 is forecast to be $12 Million, rising to $334 Million by 2020-21.

After the State Government was released from commercial-in-confidence obligations, the MYBR also records the cost of leasing and purchasing South Australia’s State-owned gas power plant.

Cost of purchasing the gas power plant was $227.2 Million, while the leasing and establishment costs were $111.5 Million. This falls well within the State Government’s $550 Million budget for the energy plan.