The South Australian Budget for 2024-25 was handed down by Treasurer Stephen Mullighan last week, reflecting core investment in the government’s key priorities of housing, cost of living relief, jobs and skills, and health. This is evident in the strategic allocation of resources aimed at fostering growth, development, and resilience across the Housing, Education, Health, Infrastructure, Arts, Sport and Recreation and Justice sectors.

Our summary below focuses on funding announcements that will catalyse new capital works projects, providing built environment businesses with impactful insights to inform your business development strategy.

Housing

While the budget does include a significant investment in social and affordable housing, with the current housing shortage in South Australia, the question is - will it be enough? As reported by ABC News, South Australian Council of Social Services CEO, Ross Womersley notes that “in order to address the housing shortage in South Australia we need them to build more than 1,000 properties a year.” 

The budget features an investment of $843.6 million in a housing package that is set to deliver 2,383 homes, which includes:

• Seaton Housing Redevelopment - $425 million for the redevelopment of SA Housing Authority (SAHA) land at Seaton, estimated to deliver 1,315 dwellings, including 388 social and 197 affordable homes, and resulting in significant urban renewal which is set to deliver an additional 26,000sqm of new public parks (note: Stage 1 of this redevelopment is already underway);

• Port Noarlunga and Noarlunga Downs Redevelopment - $150 million for the redevelopment of government-owned land at Port Noarlunga and Noarlunga Downs estimated to deliver 626 dwellings including 80 social and 90 affordable homes, with construction expected to commence in early 2026;

• Social Housing - Funded from the Commonwealth Government’s Social Housing Accelerator Payment, an investment of $135.8 million over five years to build and upgrade around 442 additional social housing dwellings.

• Regional Housing - $30 million over 3 years for regional housing, with the Office for Regional Housing working in partnership with local governments, regional employers and the development community to unlock prioritised housing projects in regional areas.

• Whyalla worker housing - $5.8 million over two years for 32 cabins at Whyalla to house the construction workforce needed to deliver the new hydrogen production, power plant and storage facility.

In support of these initiatives, the National Agreement on Social Housing and Homelessness will result in $67 million from the Commonwealth Government for enabling infrastructure to assist in expediting housing development and new social housing.

Education

The education spend in the 2024-25 SA State Budget focuses on skills and training alongside key infrastructure projects for early years, primary and secondary students.

Schools

The South Australian Government has unveiled a comprehensive infrastructure plan focused on revamping the state’s public school facilities over the next 20 years. This strategy will alter the current reactive model to a new evidence-based prioritisation framework for managing the approximately 5,700 buildings across 900 public school sites, preschools, and children’s centres statewide. 

Minister for Education, Training and Skills Blair Boyer said, “The Government’s 20-year infrastructure plan builds on the work we have already undertaken to ensure our education system is supporting our young people as the department moves away from a traditional reactive approach to an evidence-based prioritisation model.”

Projects funded under the current budget include:

• Northern Suburbs New Secondary School - $155.3 million over five years to construct a new secondary school in the northern suburbs, providing an addition 1,300 places;

• Mount Barker New Preschool and Primary School - $62.7 million over four years to deliver a new preschool and primary school in Mount Barker that will provide an additional 100 preschool places and 350 primary school places; and

• Urgent and high priority facilities upgrades - $38.1 million over four years will be invested to address much needed upgrades at Mount Gambier High School ($6 million), Le Fevre High School ($4 million), Mount Barker High School ($4 million), Bellevue Heights Primary School ($7.6 million) and Surrey Downs Primary School ($16.5 million).

TAFE

A significant skills boost will be achieved via a $275.6 million investment to increase the number of training places by around 35%, including a 20% increase in TAFE SA places in regional SA. This investment will prioritise the State’s future skill needs, focusing on areas such as defence, health, building and construction, early childhood education, clean energy transition and ICT. 

Seeking to increase the VET workforce, an additional $53.1 million investment in Vocational Education And Training will enable the development of curriculum to meet the state’s economic priorities, plus the teaching plant, equipment and student infrastructure to support its delivery.

Early Learning

As part of key government reforms to reduce early childhood development vulnerability, the budget includes an investment of $339.7 million over five years to deliver universal 3-year-old preschool in government and non-government settings, including long day care centres. This investment will include upgrading and expanding capacity in government preschools to ensure readiness for 3-year-old enrolments, the development of integrated hubs, and a grant program to incentivise non-government providers to create additional places.

Health

"This budget provides the single largest commitment in additional health resourcing of any state budget that's come before," according to Treasurer Stephen  Mullighan. Funding related to specific and potential health-related capital works projects include:

• Additional Renal Haemodialysis Services In Northern Adelaide - $17.1 million over four years to expand renal haemodialysis in the northern metropolitan area, providing an additional 21 chairs and supporting an additional 84 patients to receive services in the area.

• Additional Funding for the Port Pirie Hospital Upgrade - $11.5 million over four years to support the Port Pirie emergency department upgrade and provide for a multi-profession simulated training and development service, including a clinical simulated training laboratory.

• South Australia Regional Integrated Cancer Consult Suite - $4.3 million over three years (funded by the Commonwealth Government) to build a new integrated cancer consult suite at Mount Gambier Hospital.

• Additional Beds At Lyell Mcewin Hospital - $16.5 million in 2024-25 to provide 20 additional general inpatient beds at Lyell McEwin Hospital.

• Additional Beds At Queen Elizabeth Hospital - $13.7 million over two years to provide 36 additional surgical and general inpatient beds at the Queen Elizabeth Hospital.

• New Ambulance Stations in Whyalla, Marion and Two Wells - $24 million over three years to build new ambulance stations in Whyalla, Marion and Two Wells, rather than refurbish existing ones.

• Included in the budget under Infrastructure, these major health projects are already at the construction stage and have been allocated ongoing funding:

• $3.2 billion for the Women’s And Children’s Hospital - Early construction works for the eight storey car park and central energy plant have commenced, with construction of the main hospital expected to commence in 2024-25 and completion expected to be achieved by June 2031

• $498 million for the Flinders Medical Centre (FMC) Upgrade And Expansion - Construction works underway, with the project set to deliver an additional 160 beds across the FMC and Repat Health precinct, and completion expected to be achieved by December 2028

Infrastructure

The budget’s most significant infrastructure investment puts $15.4 million towards the River Torrens to Darlington project (T2D), which represents the final 10.5km section of the North-South Corridor. The T2D project will deliver two separate twin lane tunnels (the Southern Tunnels and the Northern Tunnels), connected by an open motorway. The tender process to select the head contractor for the project is reported to be on track to award the contract in the third quarter of 2024, with main construction works scheduled to commence in 2025 and the project expected to achieve completion in 2031.

Beyond this, the budget allows for the following planning funding, which provides insights into the future pipeline of transport infrastructure across the state:

• Adelaide Northern Growth Areas - $10 million over three years towards planning for transport network improvements to support Adelaide’s northern growth areas.

• Adelaide And Regional Rail Network Extensions - $10 million over two years towards planning for outer metropolitan and regional passenger rail service extensions.

• Adelaide Metropolitan Bus Fleet Decarbonisation - $5 million in 2024-25 to complete planning for bus and depot infrastructure to support the transition to a zero-emissions public transport bus fleet.

The Arts, Sport & Community

Investment in this sector spans metropolitan and regional capital works projects, including:

• $19 million over three years for new accommodation for the State Theatre Company, State Opera and Country Arts South Australia;

• $720,000 for the development of four new, permanent structured pavilions in Mount Gambier for the annual Generations in Jazz festival;

• $20 million over three years for the redevelopment of Lyndoch Recreation Park, providing upgraded sporting and community facilities at Lyndoch Recreation Park, in preparation for the 2025 AFL Gather Round game; 

• $83.1 million over four years for the redevelopment of the Netball SA stadium; and

• $1.8 million to support the acquisition of a parcel of land in Mitchell Park to enable the development of a purpose-built MarionLIFE Community Hub.

Unfortunately, one of the state’s largest arts sector projects, the Tarrkarri First Nations Art Gallery which is planned to be developed on the former Royal Adelaide Hospital site has not been

Police & Justice

In order to support regional policing operations and an increase in prisoner numbers, the budget confirms investment in the following key initiatives:

• $18 million over four years to construct a new purpose-built police station in Naracoorte;

• $205.7 million over four years to construct 312 high security beds at Yatala Labour Prison, which are expected to come online at the end of 2027; and

• $21 million over two years to construct 40 additional residential beds at Adelaide Women’s Prison.

Sources:  Thumbs up for concessions, but down for housing: SACOSS, State Budget 2024-25 Budget Overview; New developments a massive boost to housing supply, South Australia launches ambitious 20-year school infrastructure overhaul, State Budget 2024 -25; South Australia's 2023 budget focuses on health, housing amid cost-of-living pressures, State Budget 2024 -25, SA Budget 2024: Here are the winners and losers