State Budget 2018: Treasurer Rob Lucas cuts Labor programs, public sector jobs and TAFE campuses to reset SA’s economy
TREASURER Rob Lucas has cut dozens of programs, plans to close seven TAFE campuses and will slash the number of public servants, in a savings push he says is key to fixing SA’s finances. Get a quick overview of the 2018 State Budget here.
SA News
Don't miss out on the headlines from SA News. Followed categories will be added to My News.
- Analysis: This Budget has teeth — can the Libs sell it?
- Around our city: What the Budget means for your area
- Seven TAFEs to close — but funds flow in to education
- Libs pick fights with the wealthy and powerful
TREASURER Rob Lucas has swung the axe on dozens of programs, and plans to close TAFE campuses, in a savings push he says is key to fixing SA’s finances and resetting the economy.
Mr Lucas on Tuesday delivered the new State Government’s first Budget since the election in March, and told Parliament he’d inherited a set of books from Labor which read like “a script for an episode of Breaking Bad — mayhem, deception and one atrocity after another”.
Mr Lucas has moved to cull a range of pet programs boosted by the former Labor government, including the renewable technology fund and jobs accelerator program, while insisting he and Premier Steven Marshall were keeping all promises made at the election.
CUTS AND SAVINGS
The most controversial cuts and savings will include a reduction of 4000 public servants over the next four years, to be delivered by transfers to the private sector and a new round of voluntary golden handshakes.
Mr Lucas has earmarked seven TAFE campuses, including at Tea Tree Gully and Port Adelaide, for closure.
The government will also immediately move to outsource operations of the Adelaide Remand Centre, in a series of moves that will buy major fights with the powerful public sector and education unions.
He has also put government-run health providers SA Pathology and radiology on notice that they will be outsourced if unable to deliver expected savings in coming years.
Service SA centres at Mitcham, Prospect and Modbury will close. Bus routes which are “duplicate and low patronage” will be cut, with details to be revealed later.
The Independent Gambling Authority is to be axed, amid claimed duplication.
Fees will be increased on doctors who use public clinics to run a private practice.
THE BOTTOM LINE
The Budget confirms a $397 million deficit in the 2017-18 year, which covers the lead-up to the election and the first three months of the new government. Mr Lucas is predicting to return a $48 million surplus at the end of June next year, and stay in the black thereafter.
However, the Budget papers reveal the recorded deficit in Labor’s final year of government could yet be flipped to a massive surplus as financial boffins bicker over how to account for $1.6 billion in cash from the sale of the Land Titles Office privatisation executed by Labor.
Currently, the cash has been used to reduce state debt. However, it is possible that accounting rules will force the government to book it as income and record a technical $1.1 billion surplus in Labor’s last year.
Mr Lucas has also produced figures he says shows Labor’s past surpluses were “propped up” by the “sugar hit” of the Motor Accident Commission sales.
HEALTH, EDUCATION, JOBS
Mr Lucas said an extra $800 million would be pumped into health over five years, as savings targets in that key area which were predicted by Labor could not be realistically achieved.
TAFE has also received a $110 million bailout, with $31 million extra for child protection.
The Budget delivers on election promises to abolish payroll tax for small businesses, deliver reductions in household ESL bills and start to reduce land tax in SA from mid-2020.
More than $200 million is being pumped into a skills program to ready for the massive defence building program soon to kick off at the Techport shipyard near Port Adelaide.
There is additional money to lure new major events to SA, and tourism marketing.
Education funding will rise by $515 million over the Budget period, delivering what Mr Lucas calls the largest investment in the sector “by any government in the state’s history”.
There will be $11.3 billion spent on infrastructure including South Rd upgrades, electrification of the rail line to Gawler and a range of country roads. Mr Lucas said the increase in infrastructure spending repudiated claims the construction sector was set for decline.
Have your say on the future of our state. Take our Your Say SA survey below — it should take about 20 minutes. Or click here to take the survey if using The Advertiser app
REFORM FOCUS
Mr Lucas told Parliament the Budget “unashamedly is directed towards this reform agenda to create jobs, lower costs for struggling families and provide better services for all”.
“This government will not use the discovery of the extent of Labor’s financial mess as an excuse not to keep our election promises,” he said.
“This government’s reform agenda reflected in the Budget will help create jobs by lowering the cost of doing business for all businesses in this state, rather than relying on politicians and public servants trying to ‘pick winners’ (by) giving handouts to a small number of lucky businesses.
“This Budget will reduce the cost of living for struggling families by cutting waste and taxes and charges, rather than relying on trying to introduce a new tax every Budget.
“It is time for a change. The people of SA voted for change.”
PODCAST: OFF THE RECORD — SA BUDGET SPECIAL
THE KEY NUMBERS
Finances
► $397 million deficit posted in 2017-18 predicted to turn into a $48 million surplus this year and $105 million in 2019-20
► Economic growth expected to remain at 2.25 per cent for the next four years
► Employment predicted to expand 1.5 per cent in 2018-19 before falling to 1 per cent over the following three years
Education
► Annual funding $515 million a year higher by 2021-22
► $100 million new school for Whyalla
► $27.7 million over four years to move Year 7 into high school
► Seven TAFE campuses to close
Households
► Fees and charges increase by an average of 2.2 per cent
► Water and sewerage charges jump by 1.9 per cent, while compulsory third party premiums increase by 2.6 per cent
► Households to save a median $145 a year from reduction in the Emergency Services Levy
$10 week rent increase for Housing Trust tenants
Transport
► $315 million regional fund to improve road quality in rural areas
► $20 million to complete a masterplan for the government’s GlobeLink concept
► Some bus routes will be abolished
Health
► Scale back Labor savings targets to inject $800 million over five years into health
► Force private doctors to pay more to use public facilities
► Repatriation General Hospital to be “reactivated”
Emergency services
► $12.9 million to keep Norwood, Henley and Glenelg police stations open longer
► $9.5 million to aerial firefighting resources
► $3.9 million to keep Mt Barker fire station
Child protection
► More than $30 million spent to bail out department overspending
► $8.8 million extra for foster carers to look after young people up until the age of 21
Small business
► Payroll tax abolished for small business at cost of $157.2 million
► Land tax free threshold increased from $369,000 to $450,000
► $202.6 million to support creation of 20,800 traineeships and apprenticeships
Law & order
► $149 million on building 270 new high-security beds at Yatala Labour Prison
► $20 million for 40 new beds at Adelaide Women’s Prison
► $9.3 million to fund solicitors to undertake police prosecutions for a variety of offences
► Independent Commissioner Against Corruption to receive an extra $14.5 million over four years
Environment
► $10 million to create Adelaide’s second national park at Glenthorne in the southern suburbs
► More than $5 million earmarked to protect the coastline through sand replenishment and research into sand retention
► $5 million to open reservoirs up for recreation
Battle to save animals on the brink at Outback reserve
Conservationists are battling to save animals at an Outback reserve from the effects of the worst drought in recent memory, and have received a funding boost to redouble their efforts.
Country tradie to face court over incomplete work
A country tradesman will face the Elizabeth Magistrates Court over allegations he was not licenced and refused to refund money to clients.