South Australia hands down 2026 budget with housing and health at the centre
The South Australian government has handed down its 2026 budget, with A$1.8 billion in additional housing supply funding and A$1.2 billion of new hospital investment. The state treasury forecasts the deficit narrowing to 1.2% of gross state product by 2027.
ABC News AustraliaSouth Australian Treasurer Stephen Mullighan presented the 2026 budget to the state parliament on Wednesday. Its core pledge is to deliver 4,500 new homes through an A$1.8 billion allocation over four years. Of that, A$1.1 billion is for social housing and A$700 million for support programmes aimed at first-home buyers.
In health, a new A$1.2 billion investment package was announced, headlined by a redesigned emergency department at the Royal Adelaide Hospital and two new regional hospitals at Mount Gambier and Whyalla. 'We had to expand the budget to bring down the deficit without falling behind on health and housing infrastructure,' Mr Mullighan told reporters. State Greens MP Tammy Franks criticised the plan as having 'inadequate climate measures', and the opposition Liberal Party criticised the state debt-to-GDP ratio rising to 19%.
The state treasury projects this year's deficit at A$1.4 billion, narrowing to 1.2% of gross state product in fiscal 2027. The projections are based on an assumed A$380 million annual rise in royalty receipts from copper and iron-ore exports. Additional infrastructure investment, coordinated with the federal government, is on the table as part of the Olympic Dam expansion project. State elections are scheduled for 22 March 2027.
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