Federal budget 2025: What’s in it for South Australians?
The 2025 federal budget has landed. So what’s in it for South Australia? Here’s your quick guide.
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South Australia’s $2.4bn Whyalla rescue plan is snaffling the state’s greatest share of federal budget dollars but pandas, Port Augusta and a northern suburbs road crossing have won funds.
The state has been allocated a paltry $125m in the national infrastructure budget to remove the Curtis Road level road crossing while eastern states are delivered billions of dollars in road and rail building riches.
However, the Whyalla steelworks and mines bailout announced last month includes a $1.9bn joint commitment “to the long-term transformation of the steelworks,” the budget papers said.
The papers deeming the funding a “fiscal risk” and also said more support could be needed in the future after GFG Alliance’s OneSteel Manufacturing was pushed into administration.
South Australians will benefit from the big ticket national items of two new tax cuts, $150 help for every household with electricity bills, cheaper medicines and another billion dollars for SA public schools over the next 10 years.
Defence is expected to continue fueling jobs across the state despite the government setting itself on a collision course with US President Donald Trump as it fails to meet his demands to boost spending to three per cent of Gross Domestic Product.
The total defence budget was estimated to come in at $56.6 billion in this year’s budget, this is 2.1 per cent of GDP with plans to push it to 2.3 per cent by the early 2030s.
Budget papers said the AUKUS nuclear-powered submarines project based in SA was expected to create 20,000 jobs in Australia over the next 30 years - with almost half of those started before 2030.
Another regional town, Port Augusta, gets $6m over two years for a new anti-crime program along with millions of dollars to upgrade its heritage-listed wharf.
While the new giant panda duo living at Adelaide Zoo is attracting almost $15,000 in federal government funding every week for the next decade.
A healthy chunk pays for a bottomless bamboo buffet as the male of the pair, Xing Qiu, reportedly chews through up to 30kg a day.
Budget papers showed federal government will contribute $760,00 a year – or $14,615 a week – until mid-2034.
CURTIS RD LEVEL CROSSING REMOVAL
South Australia scored a paltry $125m spend on its road infrastructure as eastern states were lavished with billion-dollar budget riches.
The state’s single “Investing in Infrastructure” project announced in the budget is a level crossing being removed from Curtis Road in the northern suburbs as the Whyalla rescue plan appears to have soaked up SA’s funds.
Even Tasmania will get more money than SA with $200m for its Arthur Highway upgrade.
Of the total $17.1bn over 10 years earmarked for road and rail projects in the budget, Queensland scored $7.2bn for the Bruce Highway upgrades, New South Wales gets more than $5bn and Victoria $2bn.
Western Australia gets $350m for Kwinana Freeway and Northern Territory has $200m to duplicate its Stuart Highway between Darwin and Katherine.
WHYALLA: THE ‘FISCAL RISK’ DRAINING SA’S BUDGET DOLLARS
Whyalla is labelled a “fiscal risk” in the federal budget with the funding door left open to spend even more than $2.4bn announced to save the struggling steelworks and mine.
The dramatic federal and state government Whyalla rescue package was announced last month after GFG Alliance’s OneSteel Manufacturing was thrust into administration.
“The Australian Government has also committed to make additional financing contributions, subject to commercial negotiations, as part of the $1.9bn joint commitment to the long-term transformation of the steelworks,” the budget papers said.
“Further funding to support an extension of the administration process could also be considered if necessary, but this would be subject to a future decision of government so is unable to be quantified at this time.”
The rescue package, that included $595m from the state government, appeared to leave few dollars in the budget for the state’s infrastructure.
SA is set to benefit most from the federal government’s A Future Made in Australia plan highlighted by Treasurer Jim Chalmers in his budget speech.
He tells of previously announced funds for the $500m Green Iron Investment Fund that would support the longer-term transformation of the steelworks.
This comes on top of the immediate on-ground support and administration process for Whyalla support.
“In this budget, we are investing more than $3bn to support the production of Australian-made green metals, like aluminium and iron,” he said.
Budget papers show $219.3 million would be spent over two years from 2024–25 for immediate on-ground support and to stabilise the Whyalla Steelworks during administration and another $192.0 million over two years from 2024–25.
There is $18m over two years from 2024–25 in Commonwealth support for creditor assistance payments for eligible businesses
And another $9.3 million over two years from 2024–25 to support a joint taskforce with the South Australian Government through the provision of independent insolvency, legal, commercial and probity advice and to facilitate negotiations.
WHY OUR PANDA’S GET $14,615 A WEEK, WHILE YOU GET $10
Adelaide Zoo’s new giant panda duo will attract almost $15,000 in federal government funding every week for the next decade.
A large chunk of the cash will be spent on providing a bottomless bamboo buffet as the male of the pair, Xing Qiu, reportedly chews through up to 30kg a day.
The pandas are on loan from China under a 10-year agreement, costing around $15m.
Budget papers confirm the federal government will contribute $760,00 a year – or $14,615 a week – until mid 2034.
Hailing from the city of Chengdu, Xing Qiu recently turned four, while his counterpart Yi Lan is three years old.
They arrived in mid December after a 15-hour journey, including a stopover in Malaysia.
They replaced Wang Wang and Fu Ni, who arrived in 2009 but never produced offspring.
A dedicated bamboo farm was planted to feed the black and white tourist attractions,
fuelled by recycled water from the Bolivar Wastewater Treatment Plant.
It is understood Xing Qiu consumes 30kg of bamboo a day, which is about 10kg more than the average panda’s bamboo consumption.
SA’S SLICE OF GST TAXES
South Australia will see its slice of GST taxes collected fall to 9.5 per cent of the national kitty with an expected $9.042bn to flow into local coffers.
Last year, the state had a 9.7 per cent share but received less with $8.55bn and the year before the same percentage with $8.41bn.
New South Wales gets the lion’s share with 26.7 per cent and $25.4bn followed by Victoria with 27.5 per cent and $26.14bn, Queensland with 17.4 per cent and $16.57bn.
Western Australia, Tasmania, Northern Territory and ACT all get smaller shares.
The overall GST entitlement of $95.2bn is estimated to increase from $100.1 billion in 2025–26 and reach $117.2 billion by 2028–29.
ANTI-CRIME CASH SPLASH FOR PORT AUGUSTA
An embattled South Australian regional town is the focus of a new anti-crime cash splash as taxpayers spend millions of dollars upgrading its heritage-listed wharf, budget papers show.
The federal budget will spend $6m over two financial years to “support the safety and wellbeing of people in Port Augusta” and the nearby Aboriginal community of Davenport.
Federal taxpayers will also spend a further $12m over two years from 2025/26, for the Port Augusta “wharf refurbishment” that authorities hope will boost local tourism and boat access.
The Advertiser has highlighted the mounting crime wave, especially troubled youths, in Port Augusta, 300km north of Adelaide, and Davenport, located 4km northwest of the Upper Spencer Gulf town.
Budget papers show the federal government will spend $3m annually over the next two years to “establish a partnership agreement to support the safety and wellbeing of people in Port Augusta”.
The funding, part of a three-year deal with the state government, is allocated under the Commonwealth’s Closing The Gap program to “providing funding to support the Port Augusta Safety and Wellbeing Partnership”, papers state.
“The Partnership aims to better co-ordinate investment in community services between the Australian Government and South Australia,” the budget report says.
No specific details were given on what the money will be spent on.
Latest Freedom of Information data showed 121 children aged between 10 and 17 were arrested between May 2022 to May 2023 in Port Augusta and the Davenport.
The state government announced just before Christmas last year a $200,000 grant for Port Augusta Council to boost public safety, including 22 new CCTV cameras and a safety audit.
Attorney-General Kyam Maher also approved the first regional Declared Public Precinct that hands greater powers to police to crackdown on troublemakers.
Budget papers show construction work will begin to overhaul accessibility and safety at the heritage-listed Port Augusta Wharf from 2025/26 when taxpayers will spend $9.9m.
A further $2.1m will be spent the following financial year under Labor’s “Building a Better Future” program, documents show.
“The … refurbishment will improve the load-rating of the wharf for pedestrians and light vehicles, provide easier access for boats and other watercraft, and boost recreation and tourism,” a government note states.
FAR WEST COAST INDIGENOUS TOWN SCOTDESCO WATER PROJECT
A taxpayer-funded investigation aims to solve a remote drought-stricken community’s water crisis has suffered through for the past six years, budget papers show.
The tiny Far West Coast Indigenous town of Scotdesco, 100km west of Ceduna, ran completely dry because of extreme drought in November 2019.
The community, which has a water catchment capacity of up to 1.5 million litres, has been slugged with water cartage costs, which locals say the area’s 50 residents could not afford.
Community leaders have been calling for a permanent solution to the community water problems.
The federal budget shows that authorities will this financial year spend $300,000 on a “Water Security Project” to save the area, which was part of Labor’s election commitments.
Budget papers state the Australian government is “providing funding to contribute towards the investigation and delivery of a permanent solution to drinking water for the remote community”.
The project had already received $650,000 from the Commonwealth’s Indigenous Advancement Strategy for the provision of additional water security measures.
The Adelaide Football Club and the state government have previously stepped in to help supply freshwater on multiple occasions.
When the alarm was raised in 2019, locals paid $1400 for a tanker of water, more than four times that of its closest neighbouring town, the farming community of Penong, which was charged $300 a load through a subsidy scheme.
Last year the government launched the project’s phase one after lobbying from South Australian Senator Marielle Smith.
Scotdesco Community chief executive Robert Larking has said desalination, using modern cost-effective technology including solar, could be a long-term viable option
SA FAMILIES FEELING THE PINCH
With two young children and another on the way, Shannon and Daniel Webber stress they are lucky compared with some families as they deal with cost-of-living pressures.
However, even with one full-time income and a part-time one, the mortgage-belt family from Rostrevor, in the marginal electorate of Sturt, is feeling the pinch.
Mrs Webber, 34, says the family has sacrificed in other areas to maintain a healthy, active lifestyle with children Miles, 3 and Isobel, 2, rather than cutting into grocery shopping.
The public school teacher is now working three days a week, having returned sooner from maternity leave than planned.
“The initial plan was more time off and only working two days a week,” Mrs Webber said.
The couple are not greatly interested in politics but note their perspectives can be different given how political decisions affect their work – Shannon as a teacher in the public system and Daniel running a small business Webber Insurance Services.
Mrs Webber said her immediate concerns were centred around the cost of living, in particular childcare and basic living expenses including paying the mortgage, groceries and household bills.
Originally published as Federal budget 2025: What’s in it for South Australians?
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