2026-27 State Budget Analysis

The Budget delivers on the State Government’s election commitments with a strong focus on cost of living relief, major infrastructure upgrades, housing supply and affordability and health. The Budget maintains operating surpluses across the forward estimates, however, increased investment in major projects will see State debt rise in the coming years.

While the Budget includes few limited new funding announcements specifically directed to local government, LGA is pleased to see funding in several  areas aligned with LGA’s Policy Platform.

These include:

• A $1 million allocation over two years for a public awareness campaign on lithium battery disposal aimed at reducing risks associated with batteries in kerbside bins.
• A commitment to progress a state-based product stewardship framework to better manage lithium batteries risks.
• $5 million per year from 2027-28 to continue the SA Jetties Renewal Program, addressing immediate and critical concerns regarding the condition and long-term sustainability of state jetties.

LGA President, Mayor Heather Holmes-Ross welcomed investment in areas that align with council priorities and looked forward to continued collaboration with the State Government on shared priorities and partnership opportunities.

"This budget reflects the State Government's focus to deliver on election commitments, easing cost-of-living pressures and investing in significant state infrastructure projects," Mayor Holmes-Ross said.

"LGA will continue working constructively with the Government on the priorities that matter most to our communities, this Budget does not close off those discussions.

“We’re moving forward with conversations with Ministers and all parliamentarians on things we would like to see funded, and where further investment in local government can help deliver outcomes that align with state priorities."

Key measures

Office for Local Government

Targets for 2026-27:

• Support the stabilisation of local government in Coober Pedy following its period of administration.
• Develop and implement regulations to support the conduct of periodic local government elections.
• Finalise the South Australian Local Government Boundaries Commission inquiry into the boundary proposal from the Campbelltown City Council.

Housing

• A $2.5 billion housing package designed to support the Government's target of delivering 13,500 new homes per year.
• $50 million in 2026-27 to accelerate the delivery of 400 homes exclusively for first home buyers through the Playford Alive development.

LGA will continue to work with the Government on investments in enabling infrastructure to support well-planned, liveable and well-serviced growth across South Australia.

Roads and transport

The Budget includes a $29.1 billion infrastructure program over four years, supporting major transport and connectivity upgrades across South Australia. Key investments include:

• $90 million over five years for South Eastern Freeway safety upgrades, delivered in partnership with the Commonwealth Government on a 50:50 basis.
• $90 million over four years for upgrades along the Horrocks Highway, with Commonwealth co-funding to be sought on an 80:20 basis.
• $80m over five years to upgrade the Adelaide and Hawthorn Roads intersection in Mount Barker.
• $16 million over three years for intersection upgrades along Happy Valley Drive.
• $7 million over three years to deliver a new Park 'n' Ride facility at Torrens Park.
• $3.5 million over three years for a battery‑powered passenger train trial on the Belair rail line, supporting a cleaner, quieter and more sustainable transport service.
• $916 000 in 2025-26 to the Adelaide Plains Council for road sealing works at Thompson Beach.

Regional public transport initiatives include:

• $7.9 million to extend metropolitan public transport fares to Murray Bridge.
• $6.6 million to increase bus services between Murray Bridge, Mount Barker and Adelaide.

LGA also welcomes the upcoming mid-year review of regulatory arrangements for personal mobility devices and e-bikes set out in the 2026-27 plan for the Department of Infrastructure and Transport.

Regional South Australia

The budget includes new measures to support regional South Australians. Highlights include:

• $200 million in low-interest loans to support drought affected grain and livestock farmers in South Australia’s Murray Mallee, Riverland and Upper North regions.  Eligible farmers will have access to urgent financial assistance of up to $250 000 with applications open until 31 December 2026.
• $319 million over two years to support the ongoing operations of the Whyalla Steelworks during administration.
• $6.5 million to continue the Whyalla Steelworks Industrial Transformation Unit and Steel Taskforce, supporting long-term industry sustainability and transition planning.

Education and skills

• Three new technical colleges will be established in Murray Bridge, Marden and Gawler.
• $29.5 million over eight years to build the capability and capacity of South Australia’s workforce by creating 1 000 new pathways into the construction sector through apprenticeship training, industry partnership incentives and scholarships.

Health and community infrastructure

Several regional health projects have been funded, including:

• $13 million over two years for a new purpose-built medical education and training facility, in partnership with Flinders University, located adjacent to Mount Gambier Hospital.
• $13.9 million over four years for regional ambulance service enhancements, including a new ambulance station at Millicent and upgrades to facilities at Yorketown and Barmera.
• $15 million over four years for upgrades to the maternity ward, birthing centre and renal clinic at Murray Bridge Soldiers' Memorial Hospital.
• $22 million over four years for a new emergency department at Clare Hospital.
• $3 million over two years to develop a business case for the proposed new Greater Northern Adelaide Hospital.

The Budget also continues investment in key state infrastructure and community priorities, including:

• Ongoing funding of $5 million per annum from 2027-28 for the SA Jetties Renewal Program addressing critical condition and sustainability issues across state jetties.
• $55.1 million over two years for sporting clubs, community organisations and local projects.
• $29.7 million over four years for a range of local community infrastructure projects.
• $500 000 in 2026-27 toward the construction of a new Backpacks 4 Kids facility at Rundle Reserve, Salisbury South on land provided by the City of Salisbury.

Environment and Circular Economy

Projects relevant to coastal councils and environmental management include:

• $55.9 million over five years for Adelaide beach management, including sand replenishment at West Beach and implementation of recommendations from the Adelaide Beach Management Review.
• $6.7 million over four years to support recreational fishing participation and associated infrastructure.
• $1 million for a public awareness campaign on lithium battery disposal aimed at reducing risks associated with batteries in kerbside waste systems.
• $800 000 over two years for the Kangaroo Island Landscape Board to support the eradication of feral cats on Kangaroo Island.

LGA also welcomes the Budget’s commitment to progress legislation for a state-based product stewardship framework to manage lithium-ion batteries risks as well as amendments to the Environment Protection (Waste to Resources) Policy 2010 to strengthen circular economy outcomes.

Emergency management

• $17.2 million in 2025-26 for bushfire, storm and flood response, including $13 million for the Country Fire Service (CFS), $1.9 million for the Department for Environment and Water, $1.8 million for the State Emergency Service, and $589 000 for the Metropolitan Fire Service to support additional response costs associated with large scale emergency events across the state.

Homelessness

• $6 million over four years to Catherine House, St Vincent de Paul Society, and Hutt Street Centre to provide homelessness support services in the Adelaide CBD.

Domestic, Family and Sexual Violence

• Development of a five-year statewide domestic, family and sexual violence strategy and a standalone five-year Aboriginal domestic, family and sexual violence strategy.

Red tape reduction review

• The SA Productivity Commission will undertake a Red Tape Reduction review, which will aim to reduce regulatory burden and streamline business dealings with the government.

Equal Opportunity SA

• Assess the independent Flinders University review into local government leadership and behavioural management in South Australia and support implementation of relevant recommendations.

LGA strongly welcomes the opportunity to work collaboratively with the Commissioner for Equal Opportunity on this important issue across the sector.

Further reading

• Budget overview
• Budget speech (PDF 1.4 MB)
• Budget measures statement (PDF 2 MB)

Find out more

For detailed information, refer to the State Budget website.