The South Australian Government’s $17.9 billion infrastructure pipeline is the largest over a four-year period in the state’s history.
The state has added an extra $1.2 billion to the infrastructure program announced at the last budget, including an extra $1 billion commitment to complete the North-South Corridor.
In his budget speech earlier this week, Treasurer Rob Lucas confirmed the project would cost $1 billion more than forecast at the last budget — with the new cost based on increasing the number of tunnel lanes from two to three to handle higher traffic volumes.
“The most important economic infrastructure project in this state remains the completion of the north-south corridor and this year’s budget allocates $3.4 billion over the next four years to the project,” the Treasurer said.
“This project will provide a 78 kilometre non-stop motorway connecting north and south and slashing travel time by 24 minutes. Productivity improvements will be enormous as it is estimated that commercial freight operators will save up to $8.80 per trip.”
The project is now estimated to cost a total of $9.9 billion and will create up to 4000 jobs during construction and is projected to be completed in 2030.
Other transport initiatives by the state include an additional $100 million towards the $715 million Gawler Line electrification project, $99 million over 10 years for a railway station refresh program and $48.5 million for a 700 car park Tea Tree Plaza Park & Ride.
The state government will also be spending $215 million to proceed with the Strzelecki Track upgrade, $36 million to refurbish the Old Murray Bridge, $202 million to construct a bypass of Truro township and $180 million for stage 2 of the Augusta Highway duplication.
Marion Road and Sir Donald Bradman Drive intersection will be upgraded with a spending of $45 million.
The Treasurer also confirmed that the controversial Hove rail crossing project had been scrapped altogether.
Over recent months the Hove Level Crossing project had attracted significant public comment during a public consultation process over various options for the project.
The original project was originally estimated to cost $170 million but the two most favoured options involved very significant possible cost blowouts. One option was costed at $290 million and the other was costed at $440 to $450 million.
“Local community concerns were expressed about both of these options and the Federal Government has made it clear that it was not willing to fund the additional cost of the $440 to $450 million option,” Lucas said.
“Given the lack of community support for this project and the massive blowout in estimated costs the government has decided to not proceed with the project.”
The state budget also anticipates significant funding for health infrastructure, including a new Women’s and Children’s Hospital estimated to cost $1.95 billion, to be completed by 2026.
A record $1.78 billion deficit has been forecast for this financial year, which is better than the expected $2.6 billion deficit, thanks to a GST and stamp duty windfall.
While a $1.4 billion deficit is forecast for next financial year, the Treasurer said a $48 million surplus was expected in 2022-23 – a year earlier than predicted — before a $498 million windfall in 2023-24.
Despite the increase in spending and debt, Treasurer Lucas said South Australia was in a much better position than other states like Victoria and Queensland, who will not return to surplus as quickly as SA.
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