Stable leadership, strong economy

The Malinauskas Labor Government has delivered a $273 million budget surplus, underlining South Australia’s strong financial position.

Despite the drought and significant policy interventions in Whyalla, the Final Budget Outcome for 2024-25 shows a net operating surplus of $273 million – up from the $18 million surplus anticipated.

It comes as South Australia today hit yet another state record for the total number of people employed, with 992,000 people in jobs in November an increase of 5100 on the previous month, which was also a record.

The unemployment rate in SA, seasonally adjusted, was 4.0 per cent, down from 4.3 per cent – the second lowest unemployment rate in the country and below the national average of 4.3 per cent.

Labor has now delivered a surplus in every budget since the 2022 State Election, after successive deficits under the former Liberal government.

The budget bottom line was buoyed by the state’s strength in employment and the property market, as well as stronger than expected GST revenue grants and higher than estimated sales of goods and services.

Employment growth was pleasingly stronger than anticipated, as was construction activity, buoyed by sustained infrastructure investment and a solid project pipeline, which helped fortify against the detrimental impacts of ongoing drought.

Labour market conditions remained stronger than forecast throughout the year. Employment levels continued to rise, reaching a new record high by the end of the financial year. Employment in South Australia grew by 1.4 per cent (around 35,900 people) in 2024-25, exceeding the budget estimate for growth of 1 per cent.

Stronger than expected growth in residential property prices and transactions saw additional stamp duty revenue on financial and capital transactions, $43 million higher than estimated in the 2025-26 Budget.

State Final Demand, which measures total spending by households, business and governments in the South Australian economy, rose by 3.0 per cent in real terms in 2024-25, substantially above the estimate of 1¾ per cent as at the 2025-26 State Budget.

The stronger than expected surplus gives us a solid springboard into 2026 and represents another solid endorsement of the South Australian economy under the Malinauskas Labor Government.

Quotes

Attributable to Peter Malinauskas

Strong, stable government is the bedrock of a strong, stable economy, and on that measure this government is delivering.

Despite the ongoing impacts of the drought, and our significant intervention in Whyalla to protect our nation’s sovereign steelmaking capability, we have delivered a $273 million surplus.

Employment growth and construction activity are trending well above expectations – and that fuels confidence.

And that confidence is well-founded - South Australia’s unemployment rate has only had a 3 in front of it 15 times since monthly records began 47 years ago, and each time has occurred under this Government.

Today, we have the second lowest unemployment rate in the country.

In recent weeks, BankSA’s State Monitor found consumer confidence in South Australia had reached its highest level in four years, while the Business Council of Australia has now ranked South Australia as the best place to do business in the nation for three years in a row.

Confidence is building, employment is building – and SA is building.

Attributable to Tom Koutsantonis

If the Liberals were to govern, we would not be talking about an improvement in the state’s operating surplus – the state would not have a surplus.

Consumer confidence has fuelled an uptick in property transactions, which is seeing additional revenue flow to the state budget.

That means additional money to fund services and infrastructure South Australians rely on now and in the future.

The Liberals want to gut the budget with no explanation for how they will replace the billions in lost revenue – and still pretend they have money to fund their election promises.

They are already on a spending spree in a bid to seize government, and rather than showing how they will fund their proposed spending they instead want to gut the State Budget.

South Australians can’t trust the Liberals to manage the economy – they can’t even trust each other!