A record strong economy has put South Australia back in black, with the final budget outcome for 2022-23 delivering a net operating surplus of $41 million.
It’s the first surplus since 2018-19 after the Liberal’s last three budgets delivered three deficits totalling more than $2.8 billion.
The result follows the Commonwealth budget’s return to surplus, also driven by strong economic activity.
SA’s record employment figures helped drive a $255 million boost in state government taxation since the release of the state budget in June, with payroll tax $100 million above expectations.
There are currently 53,000 more people employed in South Australia than at the time of the state election, with 80 per cent, or 43,000 of these employed full time.
Stamp duty revenue was also $71 million higher than forecast, signalling the ongoing strength of the state’s property market, despite rising interest rates.
South Australia’s net debt position was $448 million lower than forecast in 2022-23, reducing South Australia’s net debt to revenue ratio by over four percentage points to 96.1 per cent.
This ratio was forecast to be 120.3 per cent in 2022-23 under the previous Liberal government.
Through prudent financial management, the Malinauskas Government has reduced this by more than 24 percentage points, while continuing to invest in the economy and boosting resources for health, child protection, housing and tourism.
This massive reduction in the net debt to revenue ratio has been partially driven by net debt being $3.3 billion lower in 2022-23 compared to the Liberal’s last budget.
The Malinauskas Government’s first two budgets led to independent credit rating agency S&P Global returning our credit rating to a “stable outlook” in August this year, after being placed on “negative watch” under the previous Liberal Government.
As put by Peter Malinauskas
My Government is determined to make the investments to set our state up for long term prosperity. We are able to do that by delivering strong economic outcomes and sound budget management.
On a range of different third-party metrics – from banks, to business groups, to credit ratings agencies, to the Australian Bureau of Statistics – our state is outperforming others.
We know that high interest rates are placing pressure on households and will act as a handbrake on spending in our economy.
But the work we have done within the first 18 months of Governing to put our budget on a sustainable footing leaves us in the best possible position to respond to needs as they arise.
As put by Stephen Mullighan
Our first budget is back in surplus for the first time in four years, thanks to a strong economy and solid financial management.
South Australia’s economy is going from strength to strength under the Malinauskas Government.
In 2022-23 we recorded the highest growth in Gross State Product of all states, and second highest in the nation.
Our stronger economy is delivering higher revenues to the budget, which we are using to improve services, build more infrastructure and reduce debt, compared to the previous Liberal Government.
Importantly, we are doing this while reducing our net debt to revenue ratio, which is now 24 percentage points lower than it was forecast to be under the Liberals.
We know there are tough times ahead, but our budget position and economic results place us on solid footing.
