- Last year's budget consisted of $4B worth of stimulus
- State taxes have risen by $257M - stamp duty accounted for $215M
Professional accounting body, CPA Australia, has said the South Australian budget – which will be the last before the March 2022 election, as well as Treasurer Rob Lucas’ last before his retirement – is keeping the SA government’s “economic powder dry”.
While last year’s budget consisted of $4 billion worth of stimulus, no new major stimulus measures were announced for this year’s budget.
State taxes have risen by $257 million – bolstered significantly by $215 million worth of stamp duty receipts thanks to rising property prices.
Dr Jane Rennie, CPA Australia’s General Manager of External Affairs, said the budget’s dryness is likely due to new spending announcements in the lead up to the election, along with good economic conditions.
“The government is clearly comfortable with its economic street cred and doesn’t feel the need for major new stimulus measures now,” she said.
“On the other hand, the government isn’t seeking to recoup the state’s pandemic debt yet through new taxes and other revenue raising measures.”
No stamp duty relief for property purchasers was featured in the budget, although an additional $10.7 million in land tax relief and a 50% land tax discount in place for new build to rent housing projects were included.
Over the next four years, $17.9 billion will be allocated towards infrastructure spending such as roads, public transport, health, education and schools along with other critical infrastructure.
Additionally, $69 million will be spent for training places to support skills for in-demand jobs, with another $4 million in wage subsidies and payroll tax exemptions for new apprenticeships and traineeships.