The 2026-27 State Budget forecasts a total of $1.4 billion in operating surpluses, with a disciplined and targeted Malinauskas Government spending program supporting a healthy surplus forecast for each of the next four years.
Ongoing surpluses underpin confidence in the South Australian economy, ensuring we have the capacity to continue to invest in our state’s future.
The budget will show a surplus of $189 million for the current financial year – more than $100 million higher than the surplus forecast in the December Mid-Year Budget Review.
Surpluses are projected to flow through the forward estimates, with a 2026-27 Net Operating Balance of $223 million, followed by projected surpluses of $285 million in 2027-28, $348 million in 2028-29 and $327 million in 2029-30.
Keeping the state budget in the black provides contingency against inevitable challenges, such as the conflict in Iran and its impact on Australia’s fuel security, as well as arising events requiring swift and strong Government action such as the Whyalla administration, support for Nyrstar, rescuing Bedford, tackling the algal bloom and a holistic State Government response to the Royal Commission into Domestic, Family and Sexual Violence.
GST and key state tax revenues have been revised up across the forward estimates since the 2025-26 Mid-Year Budget Review. The increased GST grant revenue of $225 million in 2025-26 and $794 million over the period 2026-27 to 2029-30 largely reflects the impact of a stronger national GST pool and population share forecasts, while increased conveyance duties and payroll tax revenues reflect continued strong property and labour market conditions.
As put by Peter Malinauskas
We’re not just forecasting budget surpluses. We’re delivering them. We have done so consistently since we were elected.
This fiscal discipline has provided us the flexibility to respond to unforeseen circumstances: drought, an international fuel crisis, finding a new steelworks owner, saving Bedford and dealing with an unprecedented algal bloom.
We are delivering these surpluses while delivering targeted tax relief and a record investment in productive infrastructure to set our state up for the growth opportunities to come.
I am proud to lead a pro-growth, pro-business Labor Government that delivers stable, competent economic leadership.
As put by Tom Koutsantonis
As a Government, we have been steadfastly committed to fiscal discipline while retaining capacity to act decisively when policy needs arise.
The Malinauskas Government has delivered a surplus in every budget we have handed down since we were first elected in 2022.
Ongoing surpluses fortify us against economic shocks and unforeseen spending, and allows us to sustainably manage debt and retain strong economic credentials.
In the 2026-27 Stat Budget, we are again in a strong position to deliver a strong Net Operating Balance across the forward estimates.
We have consistently delivered surplus budget after surplus budget, following years of deficits under the Liberals – and we plan for that to continue.
This does not happen by accident – and nor do we take it for granted.
We saw in the March election campaign the potential economic folly of a party promising everything to everyone, with no accountability and no care for fiscal discipline.
That is a recipe for budget deficits and ever-increasing debt.
Instead, we are delivering a budget that takes necessary action to maintain fiscal restraint while still providing Government investment where it is needed most.
