State Budget: Jobs, mental health and road upgrades for South Australians
South Australians will see thousands of new jobs, drive across refurbished roads and benefit from increased mental health support in the state’s COVID-19 recovery budget.
Bouncing back from the COVID-19 pandemic was at the forefront of the South Australian 2020-21 Budget, with residents to benefit from a $4 billion spending spree expected to create thousands of jobs over the next two years.
The state government has reinvested heavily in its coronavirus economic stimulus package, which benefits businesses, not-for-profits and construction projects, in a bid to deliver “an adrenaline hit to the state’s economy”.
The South Australian government has projected a deficit in its budget for the next two years, and is expecting a surplus of $406 million in the 2023 financial year.
Premier Steven Marshall said the focus on government spending was on projects that could be completed or significantly completed within the next two years, in a bid to urgently create jobs and back business at a time when SA needed it most.
He dubbed the new measures as “the single biggest economic stimulus by the state government in SA’s history”.
“We’ve always said we will do whatever it takes to save as many lives and livelihoods throughout the greatest economic challenge of our time in COVID-19,” he said.
“We want to see shovels and ladders, hi-vis and hard-hats, overalls and paint brushes right across the state.”
As part of the investment, tradies will be rewarded through an $851 million package for projects that provide a pipeline of building or construction works.
The government is also investing $87.9 million over two year to deliver more training through the Job Trainer Fund National Partnership Agreement with the federal government — a move said to be “critical” to recover from the pandemic by Treasurer Rob Lucas.
It will build on the existing Skilling South Australia initiative, driving growth in apprenticeships in government agencies and funded projects.
An additional $32.9 million, under the billion scheme, will fund 750 new traineeships and apprenticeships.
The stimulus package, which was unveiled on Tuesday, also included a $230 million boost to the Business and Jobs Support Fund which now totals $530 million; an additional $15 million for the Community and Jobs Support Fund which now totals $265 million; and an extra $220 million investment in the Economic and Business Growth Fund.
As part of the state’s response to COVID-19, $93 million is allocated to purchase five million medical respirator masks and 40 million level 3 barrier protection surgical masks for SA Health.
There is also $83 million to increase SA Health’s Communicable Diseases Control Branch contact tracing capacity, continue operating a state control centre emergency information call centre, expand SA Pathology’s coronavirus testing capacity and continue proving a hotel quarantine system.
An estimated 10,000 eligible small businesses and not-for-profit organisations impacted by the pandemic will benefit from the scheme by applying for a second round of $10,000 cash grants.
For the first time, businesses that suffered financial hardship and do not employ staff — including sole traders and partnerships — that operate from a commercial premise will have access to a $3000 grant.
The money will help cover ongoing or outstanding operating costs like rent, power bills, supplier and raw materials costs and other fees.
SA residents will also be able to get to and from work safer under a $268 million road maintenance and upgrade package across metropolitan and regional areas.
The state government allocated $100 million in Tuesday’s Budget while the Federal Government will invest $168 million from its $2 billion funding for shovel-ready small scale safety projects announced in the Federal Budget.
Projects part of the funding include maintenance works on metropolitan roads such as Port Road, Fullarton Road, Marion Road, Greenhill Road and Anzac Highway.
Across the infrastructure and transport sector, more than $1.5 billion will be invested for projects to improve road safety network, marine infrastructure, sporting facilities and the public transport network.
In a bid to help struggling industries and attract companies to the state, the Economic and Business Growth Fund will receive $150 million over four years, on top of a $70m commitment made earlier in the year.
South Australians needing support for their mental health through the COVID-19 pandemic will also benefit from $15.1 million allocated for a range of services, including initiatives for children and young people impacted by social isolation, as well as counselling, and drug and alcohol services.
The funding boost will add to the $7.6 million announced earlier this year as part of the state government’s immediate response to support bushfire affected communities.
By the time the Matildas play in the FIFA Women’s World Cup in 2023, Adelaide’s Hindmarsh Stadium will have been revamped, with the budget allocating $45 million to the arena out of a $204 million, four year investment to upgrade key stadiums and facilities.
The redevelopment aims to be completed by the end of 2022 or start of 2023 to be ready for the international soccer tournament.
The money for the stadium upgrade will purchase shade covering over the eastern grandstand; new lighting; new and upgraded change rooms and toilets; and improved food and beverage outlets as well as disability access, media/broadcast and corporate facilities.
A total of $44 million was also allocated for the second stage of redevelopments to the Memorial Drive Tennis Centre, where the Adelaide International tournament is held.
The money will continue to transform the facility — which is due to be completed by the end of 2021 — and will cover four new grandstands with a seating capacity of 6000, areas for event activities and general function spaces, elite training and recovery facilities, improve access and digital infrastructure.
Mr Lucas said the space could also be used for concerts and other artistic events.
A number of major cash injections were announced prior to the State Budget which included an allocated $100 million, to be matched by local governments, for upgraded local facilities or the construction of new ones such as libraries, museums, performance spaces and swimming pools.
Local residents will benefit from the investment which will also allow for new roads, stormwater and park infrastructure and walking and cycling trails under The Local Government Infrastructure Partnership Program, which is also expected to create new jobs.
As part of the state’s plans to become an exporter of green energy to world markets, $37 million will go towards upgrading the Port Bonython jetty to unlock export and investment opportunities.
SA’s $240 million hydrogen project was launched last week, which saw a 75MW electrolyser installed near Whyalla which has the ability to produce enough hydrogen to create 40,000 tonnes of ammonia each year.
The State Budget will include a $2.9 billion deficit for this financial year, with the state’s debt soaring to $33.2 billion over the forward estimates.
There will also be a $1.3 billion drop in forecast GST grant revenues.
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