South Australians may face rise in fees and charges to fix $500m State Budget black hole

South Australians could be slugged more in fees and charges in June’s State Budget, with Treasurer Rob Lucas confirming he had asked government departments to consider increases.

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South Australians could be slugged more in fees and charges in June’s State Budget, with Treasurer Rob Lucas confirming he had asked government departments to consider increases.

Mr Lucas said he was considering a “range of options” to balance the Budget after a $500 million reduction in expected GST revenue in 2019-20, including a “possible one-off larger increase in fees and fines”, or extra savings measures. He said a final decision about whether fees and fines increased substantially or by the usual indexation rate would not be made until next month, and unveiled in June’s State Budget.

“Due to the massive $517 million cut in expected GST revenue next year, the Government is considering a range of options, including further savings measures and a possible one off larger increase in fees and fines,” Mr Lucas said.

Treasurer Rob Lucas

“As part of the Budget process all departments have been asked to consider and model impacts of possible savings measures and increases in fees and fines.

“However, final decisions on the extent of increases in fees and fines will not be taken finally until May in the lead-up to the State Budget.”

Mr Lucas originally predicted a Budget surplus in 2019-20, but a $517 million reduction in expected GST revenues from the Federal Government means a deficit is projected.

Mr Lucas has continually stressed the need for spending restraint to keep the Budget “in balance” following the write-down. Labor treasury spokesman Stephen Mullighan said the revenue problem was “one entirely of Rob Lucas’s making”.

He said he’d been told departments had been asked to model fees and fines increases of up to 5 per cent, which is about double the current inflation rate.

“That would not be easily absorbed by South Australians,” Mr Mullighan said.

“Last year, Rob Lucas had a massive GST windfall and he spent all that money. Now he’s had the GST return to usual levels and he’s looking at a massive increase in fees and charges.”

SA Council of Social Services chief executive Ross Womersley said there was “absolutely no doubt” an increase in fees, fines and charges would have a significant impact, particularly on low-income South Australians.

“We would urge for the Government to look elsewhere for savings, and instead look at measures that are likely to have more impact on those that can afford it, rather than those that can’t,” he said.