‘Mixed bag’: SA reacts to state budget
Peak industry bodies and unions have responded to the Malinauskas Government’s second State Budget, saying it delivered in some areas but failed in others.
Organisations representing a variety of special interests in South Australia have poked some holes in the State’s 2023/24 Budget, labelling it “short-sighted”, a “missed opportunity” and “a mixed bag”.
Revealed yesterday, the Budget provides a raft of measures for those looking to get a foot in the door of the property market and cost of living relief initiatives designed to ease pressure on South Australian households.
But more could have been announced for businesses, road maintenance, climate, public education and the environment according to organisations including Business SA, the Greens, unions and the RAA.
SA businesses left without respite
Business SA CEO Andrew Kay said the Budget was a “missed opportunity” to provide some “must-needed relief” for businesses in South Australia.
“As expected, todays budget predominantly addressed cost of living pressures, with high levels of funding allocated to health, housing, and child protection,” Kay said.
“Business face many of these same cost pressures and more in an environment where wages are growing significantly, and the economy is slowing.
“Where households receive some respite in this budget, businesses do not.”
The CEO added he wanted to see business relief in the form of lifting the payroll tax threshold – an “increasing burden” on local businesses as wages grow.
“Through no fault of their own, business owners are now carrying extra costs under a model discouraging growth and job creation,” Kay said.
“Today’s announcements mean the government is banking additional payroll tax dollars off the back of rising wages, and business is doing the heavy lifting.”
The peak body did welcome the $6.5 million allocated to the small and family business strategy however.
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For Australian Industry Group’s South Australian representative Jodie van Deventer, the budget was a “mixed bag” and “largely lacks the imagination needed as the State’s businesses struggle with skills shortages”.
“While energy bill rebates of up to $650 for 89,000 small businesses are welcome, it is a Band-Aid measure, given that an Energy Consumers Australia report … shows that South Australian businesses are paying more for power than anywhere else in the country,” van Deventer said.
“In a tight fiscal environment, it is essential this Government ensures its policies and programs encourage productivity, business competitiveness and growth, which are key to our State’s success, creating economic prosperity for all.”
The South Australian Council of Social Services (SACOSS) said the State Government “may have squandered an opportunity to make significant and meaningful change for the state’s long-term benefit”.
“This Budget represents an admirable effort to lessen the impact of spiralling costs for many South Australian households,” said SACOSS CEO Ross Womersley, who welcomed initiatives targeted at grappling with rising costs of living and the ‘Better Housing Futures’ commitments.
“However, this relief is a ‘sugar hit’ – a short-term, one-off measure that doesn’t address long term efficiency measures which would help low-income household reduce their energy demands, and therefore costs, over the long term,” he said.
“Moreover, this Budget hasn’t taken the opportunity to explore a range of newer options which will also be needed to truly address the housing crisis, such as shared equity schemes, modular housing and vacancy taxes.”
RAA “concerned” about lack of road maintenance funding
The RAA welcomed funding for roads and public transport including the $98 million road safety package, the $7 million for the roll-out of Tap and Pay across all modes of public transport, and the $5 million toward transport infrastructure planning studies.
However, RAA Senior Manager Safety and Infrastructure Charles Mountain said the organisation was looking to see more funding allocated to address a growing road maintenance backlog worth $2 billion.
“We are concerned about the level of ongoing road maintenance funding, which should be a priority for South Australia given the state of our road network,” he said.
“The condition of our road network is also a key component of the Safe System approach to reducing road trauma.
“The current base level funding is not enough to address our growing backlog of road maintenance to maintain a minimum standard across the network.”
Greens decry lack of support for renters, climate
The Greens say renters and the climate were “overlooked”, with MLC Robert Simms noting that renters were “the forgotten people in the State Budget”.
But the party welcomed the initiative to scrap stamp duty for first homebuyers.
“The Greens welcome the decision to scrap Stamp Duty for first home buyers and the increased investment in public housing, however this is still well short of what’s required to tackle our state’s growing housing crisis,” Simms said.
“The Greens have been calling for renters to get the same cost of living concessions as home owners for several years now, yet the Government still hasn’t taken action. Just days ago the Malinauskas Government blocked moves by the Greens to cap rent increases and fully ban rent bidding.
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“Sadly, it seems that yet again renters are the forgotten people in this State Budget.”
Tammy Franks MLC was similarly disappointed, and said that the environment was “overlooked in this budget”.
“It’s outrageous that in this time of climate crisis that over the next four years the Department of Environment and Water’s budget will be cut by $88m and Green Industries SA will be completely gutted with its budget halved,” Franks said.
“Climate change isn’t even mentioned once in the Treasurer’s speech.”
Budget fails to support teachers says Education Union
The local branch of the Australian Education Union has labelled the Budget’s commitment to public education “short-sighted”, despite $155.6 million in funding for the Department of Education.
This is largely due to a lack of funding for more teachers according to SA Branch President Andrew Gohl, who is worried there will be “shiny new buildings for students without educators to teach them”.
“Almost half of all teachers in SA plan to leave the profession, so we are calling for a commitment from the Government to alleviate the pressures pushing them to breaking point,” Gohl said.
“If it is the Government’s preference to address excessive workloads and staff shortages through enterprise bargaining, we are yet to see evidence of that.
“We know that right now, our public education system is running on the unpaid goodwill of educators. It’s time for the Premier to change that.”
SA Unions was mostly pleased with the Budget, but said more needed to be done to guarantee the development of the State’s future skills base.
“The government now needs to look at how they spend the money they have committed, and ensure that government procurement of goods and services supports good, ethical, local suppliers, so the benefits of government spending flows to South Australian workers and communities,” SA Unions Secretary Dale Beasley said.
“South Australians face compounding challenges from the pandemic and flooding to stagnant wages, housing unavailability and skyrocketing living costs.
“At this time of significant pressure we know that South Australians rely on the services provided by our public and community sector organisations and we’re pleased to see the government not take a razor to those services; a stark difference to the previous government.”
Jetty repair funding “not enough” says Eyre Peninsula mayor
A $5 million per year commitment to repair deteriorating jetties across South Australia is “not enough” according to Tumby Bay Mayor Geoff Churchett.
Churchett was anticipating “direct funding” to help fix the Port Neill jetty, which is currently closed.
The jetty had been under repair until removing of decking revealed exensive rotting of bearers, corrosion of critical connections and white ant damage.
The council allocated an extra $600,000 for repairs but also approached the Department of Infrastructure and Transport seeking financial assistance.
“We had hoped this budget would provide direct funding to the jetties involved in the pilot program, in particular Tumby Bay,” Churchett said.
“Whilst we have been awaiting the outcome of the government’s pilot program, the Tumby Bay jetty has continued to deteriorate and remains closed.
“I acknowledge that the Council has maintenance obligations under our lease arrangement with the State, however, the structural integrity of the Tumby Bay jetty is at risk and the State Government, as owner, needs to take some responsibility here.”
