BUDGET

Despite further significant investments in key services and assistance for our regional communities doing it tough, the government has budgeted for net operating surpluses in each year over the forward estimates. This is consistent with the commitment to implement priorities in a fiscally sustainable manner.

As a result of these investments and the government’s record infrastructure program, totalling $27.3 billion over the period 2025‑26 to 2028‑29, non-financial public sector (NFPS) net debt is estimated to increase to $48.5 billion by 30 June 2029. South Australia has a net debt to revenue ratio that is second lowest in the nation and has a AA+ credit rating.

NFPS NET DEBT AS PERCENTAGE OF TOTAL REVENUE AS AT 30 JUNE 2028, BY JURISDICTION¹

ECONOMIC OVERVIEW

South Australia’s population grew by 1.2 per cent in the year to the September quarter 2024, (slower than the previous year but still above the previous decade average). South Australian employment growth of 2.4 per cent through the year to April 2025 has been ahead of previous forecasts and above population growth, with the unemployment rate staying low at 3.9 per cent.

Despite subdued consumer spending and business investment, the economy has continued to grow, supported by significant public and dwelling investment. With inflation now within the Reserve Bank of Australia’s target range, lower interest rates should support growth in household consumption and private investment.

The South Australian economy is forecast to grow by 1¼ per cent in 2024-25 and strengthen to growth of 1¾ per cent in 2025-26.

KEY ECONOMIC INDICATORS UNDERLYING THE BUDGET AND FORWARD ESTIMATES
– SOUTH AUSTRALIA