$4 billion dollar stimulus spend and a focus to create and save jobs
On Tuesday 10 November, the Treasurer of South Australia, Rob Lucas, handed down the 2020-21 SA State Budget. As expected, the focus of the budget is targeted spending to create and save jobs. There has been a record spend announced on infrastructure of $16.7 billion along with a $4 billion stimulus spend. Spending in health, SA Police, education and training, tourism and hospitality and responses to COVID-19 and the bushfire recovery has also been announced.
The budget deficit for last year was $1.49 billion. This year it will increase to $2.59 billion and $1.42 billion next year. The State Government is hoping to get back to into surplus in 2023-24 financial year. However, even though the debt will increase significantly, interest costs will be less than previous estimates due to record low interest rates.
For South Australian businesses, announcements were made with regards to payroll tax, Small Business Grants and land tax relief.