Ten big State Budget Questions answered
Earlier this week we posed 10 big questions the State Budget needed to answer – now we know.
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Earlier this week we asked the ten big questions of the 2020 State Budget – now we have our answers.
HOW BIG IS THE BUDGET BLACK HOLE?
The State Budget black hole is big … very, very big, with a $2.59bn deficit this year. The short-term effects are obvious, funding key infrastructure projects and supporting business. Longer term will be trickier, but the government hopes to return to surplus by 2023-24.
Debt also will soar to a massive $33.2bn over the forward estimates
WILL SOUTH ROAD GET TUNNELS?
Yes, the State Government will build two tunnels as part of what they have described as a ‘hybrid plus’ option.
Treasurer Rob Lucas said he is 100 per cent confident the Federal Government will help to pay for the $8.9bn project by 2030.
The ‘hybrid plus’ option means major heritage icons along the route – including the Thebarton Theatre – are saved along with hundreds of homes that had faced a potential wrecking ball.
HOW DO WE REPLACE THE SUPERLOOP?
South Australians will have to wait to discover what the suite of events to replace the super popular Superloop V8 race through Adelaide streets will be.
An events advisory committee will be established to determine those projects over the coming months.
CAN WE EXPECT CUTS TO THE PUBLIC SERVICE?
The state’s public sector will be expected to find $198 million in savings over the next four years.
But there are no obvious nasties like cuts to public transport, Service SA centres and TAFE that had been included in previous budgets before backflips.
IS THERE A WOW-FACTOR PROJECT?
Much of the talk in the lead-up to the budget has been focused on shovel-ready projects that can be out the door within two years.
And that narrative continued as the State Budget was unveiled.
There is an additional $50 million for a Aboriginal Art and Culture Centre at Lot Fourteen.
JUST HOW UNHEALTHY IS THE HEALTH BUDGET?
Health spending hits a record $7.193bn, almost double its nearest rival Education’s $3.926bn and up a whopping $676m from just last year’s budget estimate as spending on COVID changed plans.
This year it includes $897m over five years for “additional support for the ongoing operation of the health system” as strict plans for efficiency targets to rein in spending are put on hold, also blamed on the pandemic.
WHAT SPORTS WILL GET BIG STADIUM UPGRADES?
Upgrades to major sports facilities including Hindmarsh Stadium and the Memorial Drive Tennis Centre are the big ticket items.
But the Treasurer has left the door open, and some cash, for Infrastructure Minister Corey Wingard to announce more projects soon.
HOW MUCH EXTRA WILL TAXPAYERS COUGH UP?
Fees and charges increased by around 1.9 per cent on July 1, 2020 reflecting the average increase in the cost of providing services.
There will be an increase to the Victims of Crime levy by 50 per cent from January 1, 2021 with the exception of Youth Levy fees which remain unchanged.
Motorists that have their cars clamped or impounded will no longer be able to get them back without paying fines first.
WHAT SUPPORT IS COMING FOR HARD-HIT SECTORS?
One of the major surprises of the State Budget is a $233m payroll tax program that includes a 12-month waiver for companies that put on a new trainee or apprentice.
The program expands on previous support by extending to more businesses with a wider range of circumstances.
WHAT WILL THE GOVERNMENT TRY TO KEEP QUIET?
An Australian-first road user fee for plug-in electric and zero emission vehicles appeared to come from nowhere.
Treasurer Rob Lucas argued the vehicles do not attract fuel excise and therefore make a lower contribution to the cost of maintaining the state’s road network.
DETAILED READING
MAIN WRAP: Tunnels, tennis stadiums and tax relief
SPORTS UPGRADES: $40m upgrades for Memorial Drive, Hindmarsh Stadium
ANALYSIS: Why this Budget will change SA forever
POLICE: High-def cameras to catch drivers on mobile phones
BUSINESS: Payroll tax holiday extended
ACROSS SA: What’s in the Budget where you live