SA budget to focus on jobs

The South Australian budget on Thursday is expected to emphasise job creation and also include some infrastructure spending.

Job creation measures and infrastructure spending will be key features of the South Australian budget on Thursday.

Treasurer Tom Koutsantonis says his latest financial blueprint is not about delivering a surplus but rather creating employment opportunities.

"The government is very keen to be fiscally disciplined but our main aim is to offer South Australians a path to where we can create jobs," he said.

"What you're going to see in this budget is the government's values on show, an expression of what we want for the people of South Australia."

The budget comes as SA is gripped by a jobs crisis with figures for May putting unemployment at 7.6 per cent, the highest of all the states.

It also follows this week's announcement by Alinta Energy of plans to close its two SA power stations and the Leigh Creek coal mine as early as March 2016, with the loss of more than 400 jobs, and as the closure of Holden's vehicle manufacturing facilities in 2017 draws closer.

Mr Koutsantonis said the government fully appreciated that structural change was coming with the demise of the state's manufacturing sector and was determined to give businesses the tools needed to succeed.

Read into that some degree of tax reform, though probably not as significant as Business SA, the Liberal opposition and the Tax Institute would like.

Institute President Stephen Healey said South Australia must show a real commitment to abolishing inefficient taxes.

On the balance sheet, Thursday's budget is likely to look a little healthier than might be expected thanks to a projected increase in GST returns and an injection of funds from the Motor Accident Commission.

In December's mid-year budget review the forecast surplus for 2015/16 was cut from $406 million to $265 million, though it remains unclear if the finances have deteriorated further since then.

The treasurer's comments on not delivering a surplus might offer a clue that the government has sacrificed a return to the black, opting instead to spend in a bid to boost jobs and stimulate economic growth.

The government has already announced some budget measures including axing a levy imposed in 2003 to help save the River Murray, a $200 a year cost of living concession for pensioners and extra funding to boost tourism and the flow of international students.


Share

3 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world