www.statebudget.sa.gov.au
2012–13 Budget Paper 1
Budget Overview
Cover image: Southern Expressway Duplication
2012–13
Budget Papers
Budget Paper 1 Budget Overview
Budget Paper 2 Budget Speech
Budget Paper 3 Budget Statement
Budget Paper 4 Agency Statements – Volumes 1, 2, 3, 4
Budget Paper 5 Capital Investment Statement
Budget Paper 6 Budget Measures Statement
This publication is printed on FSC certified paper.
Acknowledgements
The images in this publication are reproduced with the
kind permission of various state government agencies.
Content from this publication may be reproduced with appropriate
acknowledgement, as permitted under the Copyright Act.
© Government of South Australia 2012
Published May 2012
ISSN 1440-8589
www.statebudget.sa.gov.au
Department of Treasury and Finance
State Administration Centre
200 Victoria Square, Adelaide, South Australia, 5000
GPO Box 1045, Adelaide, South Australia, 5001
Telephone: +61 (08) 8226 9500
Web: www.treasury.sa.gov.au
2012–13 Budget Overview
A message from Jack
South Australia will be a very different place
in a few years.
The expanded Olympic Dam mine – the largest
open pit mine in the world – will be operating, along
with dozens of others, exporting copper, gold and
uranium to a region hungry for our resources.
The Future Submarine Project – the largest
nation building project since the Snowy
Mountain Scheme – will be in full swing,
employing thousands of South Australians,
transforming our industrial landscape.
Australia’s most advanced hospital will be
looking after the health needs of our citizens.
The centre of Adelaide will be thriving, the
redeveloped Adelaide Oval will rival the
great sporting stadiums of the world, and
the Riverbank will bring together our cultural
and entertainment precincts.
But realising this vision isn’t going to
happen without obstacles sometimes
presenting themselves.
When preparing this budget, I was confronted
with the biggest revenue write-down in our
history because of international economic and
national political uncertainty. Doing nothing was
not an option, so tough choices had to be made.
But the vision for a greater South Australia
couldn’t be abandoned; not if we want SA to
be a place our kids stay, to in turn raise their
kids. The budget steers a course between
those who’d abandon financial prudence,
and those who’d abandon building the future
our children deserve.
In this budget, debt is kept to sustainable
levels while a once-in-a-generation renewal
of our infrastructure gathers pace; new
spending for those with disabilities and
their carers is prioritised; and stimulus is
given to key areas of our economy to keep
unemployment at historic lows.
In short, the 2012–13 Budget builds the
strong foundations for the stronger future
that awaits our state.
Conte
nts
Budge
t summ
Page
Saving
ary
s&
rev
Leane
r gove enue
2
rn
No ne
w taxe ment
3
s
Econo
m
Infras y 4
tru
Helpin cture 6
g
8
Disab the family
ility su
budge
1
2
t
pport
Health
14
Skills
& train
16
ing
Comm
u
18
Emerg nity safety
20
ency s
ervice
River M
s
22
Strate urray
gic pri
24
orities
Guide
25
to
Budge the 2012–
13 26
t Pape
rs
28
Jack Snelling MP
Treasurer
Treasurer Jack Snelling
visiting Novita
Children's Services
(picture courtesy
of Mark Brake,
The Advertiser).
P1
Budget summary
Budget summary
The State Government is dedicated to sound financial management and the strong foundations
that support South Australian households and the state’s economy.
Current international and national
economic conditions continue to affect
the state’s revenue. Total taxation and
GST revenues have been revised down by
more than $2.8 billion since the 2011–12
Budget, placing great pressure on the
state’s finances.
To ensure a stronger future for
South Australia, savings measures will
continue while record infrastructure
spending will be sustained to support
economic growth.
The State Government will meet
responsible fiscal targets and forecasts a
return to budget surplus in 2015–16, even
in the face of historic revenue write-downs.
The 2012–13 Budget supports
South Australians in need with initiatives
aimed at increasing and improving
services in health and disabilities.
Investments in critical infrastructure
projects including health, transport and
skills will continue.
Some projects have been revised so
that spending can be focused in areas of
most need. However, investment in the
state’s infrastructure remains at all-time
high levels.
With the new Royal Adelaide Hospital
coming onto the state’s balance sheet,
net debt is forecast to peak at $8.8 billion
in 2015–16. As a percentage of revenue,
net debt is expected to increase to
49.1 per cent at 30 June 2016 and will
remain below the government’s fiscal
target of 50 per cent.
The general government sector budget ($m)
2011–12
Estimated Result
Net operating balance
Net lending
Net debt
Net debt to revenue %
P2
2012–13
Budget
2013–14
Estimate
2014–15
Estimate
2015–16
Estimate
–284
–867
–778
–15
512
–1 300
–1 901
–1 038
–31
–2 045
4 282
5 329
6 398
6 508
8 755
27.0
35.4
41.3
39.1
49.1
2012–13 Budget Overview
State Government Revenue
Other grants
22%
Other revenues
21%
Savings & revenue
measures:
12.5
12
11.5
State
taxes 27%
11
2012
The 2012–13 Budget will introduce the following new savings and
GST 30%
revenue
Public Se
per cent o
2012–20
Other revenues
Transport and
communications
6%
3 359
3 131
Health 31%
15 059
Other 13%
SA
800
700
600
500
‘16
‘14
‘12
‘10
‘08
Education
25%
Public
order and
safety 10%
15
$m
12
Health
4 927
7
Education
9
Public8order and safety
4 053
Social
and welfare
6 7security
6
1 235
Housing
6 and community amenities
3
Transport
5 and communications
Other 5
04
1 113
1 573
3
2016
883
2 142
15 926
2 4
1
NT
2015
8
‘06
Social
11.5
security
and welfare 8%
Housing and
11
community
amenities 7%
ACT
4 512
4
TAS
GST
State
Government
Expenditure
Other grants
4 057
2014
$m
State taxes
Suspending some capital projects will
11 in lower spending of $444.2 million
result
over the next four years. These projects
include the electrification of the Gawler
and Outer Harbor rail lines. Stage 3A
2011–12 payroll tax rates by
of The Queen Elizabeth Hospital will be
jurisdiction (%)
postponed until 2015–16.
2013
State
taxes 27%
2012
GST 30%
12
SA
As well as these measures, the Thinker
in Residence program will wind-up
12
in 2012–13. The Integrated Design
Commission will also conclude its
11.5
activities at the end of 2012.
5
WA
12.5
6
12.5
Qld
Other revenues
21%
7
‘04
Other grants
22%
8
Health 31%
Other 13%
Vic
State Government Revenue
• Transferring of Defence SA’s property
functions Workforce
and staff to theas a
relatedSector
Public
new
Urban
Renewal
per cent of total Authority
workforce
(saving $200,000 in 2012–13,
2012–2016
increasing to $350,000 a year,
indexed, from 2013–14).
2011–12 p
jurisdicti
Transport and
communications
6%
‘02
• Merging the Department for Water and
the Department of Environment and
Natural Resources (saving $1.9 million
a year from 2013–14).
• Ending funding for a government
corporate suite at the
Adelaide Entertainment Centre
(saving $72,000 a year).
State Government
Expenditure
NSW
• Increasing the current efficiency dividend
applied to public sector agencies from
0.25 per cent to one per cent a year from
2013–14 (saving $129.5 million a year
by 2015–16).
• Replacing the payroll tax exemption on
wages of apprentices and trainees with
a targeted grant scheme administered
by the Department of Further
Education, Employment, Science and
Technology, and deferring previously
announced tax cuts (saving around
$63 million a year from 2013–14).
‘00
• Reducing public sector employees by
another 1,000 (saving $86.6 million a
year by 2015–16).
0
8
7
7
6
6
5
5
800
700
600
500
ACT
TAS
NT
NSW
WA
Vic
Education
25%
Public
order and
safety 10%
Qld
Social
security
and welfare 8%
Housing and
community
amenities 7%
SA
4
4
800
700
600
500
400
300
200
100
P3
Leaner government
Leaner government
The 2012–13 Budget continues to improve the efficiency of the public sector and reduce
financial pressure on the state’s balance sheet.
P4
16 000
2015–16
2014–15
2013–14
‘08
‘10
‘12
‘14
‘16
WA
SA
TAS
ACT
NT
2016
2015
2014
2013
1
‘06
The government has previously announced
11
the abolition of the Department of Planning
and
Local Government and has created the
15
Urban Renewal Authority (URA). The URA
takes
12 over the operations of the former
7
Land Management
Corporation along
with9 8industrial holdings formerly held by
Defence SA and some development assets
67
formerly6 owned by the South Australian
6
Housing
Trust.
3
2011–12 payroll tax rates by
jurisdiction (%)
16 000
15 000
14 000
0.983
The second phase of the program lasted
0.4
three years up to 30 April 2012, with the
aim of reducing the
0.2 cost of red tape for
business, including the not‑for‑profit
0.0 $150 million a year.
sector, by a further
11.5
Agency
mergers
3
17 000
The first phase of the Red Tape Reduction
program began in 2006. The program
aimed to reduce the cost of doing business
0.938 0.944 0.955 0.966 0.969
in South Australia by reducing red tape
by $150 million a1.0year. This aim was
surpassed with the outcome independently
0.8
verified at $168 million at the end of the
program in 2008.0.6
1.0
The 2010–11
Budget announced that
savings would be generated from a
12.5
15 per cent
reduction in Ministerial Office
spending to be achieved fully in 2013–14.
0.9
This
target
has been achieved a year earlier
12
in 2012–13.
04
8
0
18 000
Red tape reductions
Cost of living capital city
Ministerial Office Budgets
comparison
5
11
2012–13
2011–12
15 000
Qld
11.5
• Creating efficiencies in Defence
15000
SA following the transfer of some
of Defence SA’s property related
10000
functions and staff to the new URA.
This will deliver savings of $200,000 in
5000
2012–13, increasing to $350,000 a year
(indexed) from 2013–14.
‘04
12
17 000
Vic
12.5
• Merging the Department of
Environment and Natural Resources
with the Department for Water.
This will deliver savings of $0.9 million
in 2012–13, increasing to $1.9 million
a year (indexed) from 2013–14.
20000
Operating expenditure
(real terms $)
‘02
Public Sector Workforce as a
per cent of total workforce
2012–2016
The 2012–13 Budget continues the move to
reduce the number and size of government
agencies. This includes:
The 2012–13 Budget includes savings
measures totalling $430.7 million
(excluding capital projects) over the
next four years.
The government is dedicated to continuing
to reduce red tape by building on its
rigorous Regulation Minimising program.
5
2 4
NSW
The Public Sector as a
percentage of the total
workforce will be the smallest
that it has been since 2000.
Spending reductions
‘00
Between 2012 and 2016, the number
of full time equivalent employees will
decrease by 3,893. This reflects the
cumulative impact of savings measures
introduced since the 2008–09 Mid‑Year
Budget Review, partially offset by targeted
new spending measures.
0
8
7
7
6
6
5
5
ACT
TAS
NT
NSW
4
WA
on
5%
• Reducing public sector employee
numbers by 1,000 over three years
(2013–14 to 2015–16) to deliver savings
of $86.6 million a year by 2015–16.
Vic
%
%
• Increasing the efficiency dividend
applied to agencies from 0.25 per cent
to 1 per cent a year from 2013–14
to deliver extra savings growing to
$129.5 million a year by 2015–16.
Qld
ate
7%
Savings measures are needed to reduce
the size of the government and the
following measures will be introduced:
2012
ues
1%
Building on the spending restraint set out
in the 2011–12 Budget and the Mid‑Year
Budget Review, the 2012–13 Budget
confronts the shortfall in state revenues.
SA
e
2012–13 Budget Overview
4
P5
1
1
1
1
1
No new taxes
1
1
No new taxes
State Government Revenue
Other grants
22%
Other revenues
21%
Public Sector Workforce as a
per cent of total workforce
2012–2016
15
12
12.5
9
The 2012–13 Budget contains no new taxes.
6
The government has a strong record on
tax relief in recent years and continues
its relief by:
communications
Other
•6%introducing yearly indexation
of 13%
• increasing the payroll tax threshold
from $504,000 to $600,000
land tax thresholds
• decreasing the payroll tax rate from
5.67 per cent to 4.95 per cent (the third
lowest rate in Australia)
3
0
2015
2016
• abolishing many taxes outlined in the
Intergovernmental Agreement as part
11
of the Reform of Commonwealth-State
Financial Relations.
2014
• increasing the land tax threshold to
$300,000 and amending subsequent
State
Government
tax brackets
– saving 84,000
Expenditure
South Australians from paying
land tax in
Transport
and2010–11
Health 31%
11.5
2013
• introducing payroll tax reforms to
GST 30%
State
improve consistency for businesses
taxes 27%
operating in more than one jurisdiction
2012
Despite massive falls in revenue, the
government took the decision not to
raise taxes, avoiding placing further
burden on South Australian households
and businesses.
12
2011–12 payroll tax rates by
jurisdiction (%)
8
8
7
7
6
6
5
5
$m
800
700
600
500
P6
–12
2011
–13
2012
–14
2013
2
5
014-1
-16
2015
800
700
600
500
ACT
TAS
NT
NSW
WA
Vic
e Education
25%
d
i
v
o
r
p
Public
r
o
a
t
eorder .and
y
d
e
a
t
a
stim 61 million safety 10%
e
e
r
res a ion to $7
u
s
a
ill
me
m
f
e
8
i
l
2
e
Tax r lief of $6
re
total
Qld
Social
security
and welfare 8%
Housing and
community
amenities 7%
SA
4
4
800
700
600
500
400
300
200
100
0
2012–13 Budget Overview
P7
Economy
its
using trategy.
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cons
P8
2012–13 Budget Overview
State Government
concessions ($m)
State
StateGovernment
Government
concessions
concessions($m)
200
200
200
200
150
150
100
150100
50
50
Economy
175
150
125
100
2005-06
2005-06
2006-07
2006-07
2007-08
2007-08
2008-09
2008-09
2009-10
2009-10
2010-11
2010-11
2011-12
2011-12
2012-13
2012-13
2012-13
2010-11
2011-12
2009-10
2008-09
2006-07
2007-08
2005-06
Despite the uncertain global outlook,0 the South Australian economy is0 well placed for a bright future.
Write-down of SA GST revenue
South Australian economy
Global economy
Unemployment rates – major economies
Australia
grantsand
andSouth
conveyance
duty(percent)
While the global economy is still to recover from
The State Government’s revenues, including
revenue ($m)
25
the Global Financial Crisis, economic growth
has suffered a further setback in 2011–12 from
20
the Eurozone Debt Crisis.
0
-100
-500
to the global economy have
The setbacks
5
had dampening effects on the national and
state
economies. Households in particular
0
have become more cautious in their spending
behaviour, increasing their savings in
response to the uncertainty.
-600
-700
-597
-400
-711
-460
-300
-594
-200
15
The United
States is showing signs of recovery
but also faces large financial problems, posing
10risk to global economic recovery.
a
2014–15
2013–14
2012–13
2011–12
-800
Write-down of SA GST revenue
South Australia’s disability expenditure
grants($)
and conveyance duty
600 000
revenue
Australian Household Savings Ratio (%) ($m)
0
500
000
12
-100
10
400 000
-200
6
300
000
-400
8
-300
4
200
000
2
-600
2011
2009
2007
2005
2003
-800
2001
1999
1997
1995
1993
0
-700
1991
1989
–2
Good news for South Australia’s
future
• The economic outlook is strong with
economic growth of 2.75 per cent forecast
for 2012–13.
• The unemployment rate of 5.2 per cent is
very low compared with unemployment
rates around the world.
• An enormous $109 billion worth of
projects are underway or in the pipeline in
both government and private investment.
• There has been another strong winter
crop in 2011–12 and solid growth in
mining activity.
-500
0
100
000
GST and stamp duties, rely heavily on
transaction based economic activities.
With household savings at the highest levels in
decades and a slow property market, the state’s
revenues have been reduced by $2.8 billion
over four years since last year’s budget.
Unemployment rates – major economies and South Australia
25%
20%
• Over the past decade, the Gross State
Product per capita has increased
by 19 per cent, the third highest
in the country and well above the
national average.
• Mineral exports in the year to March 2012
totalled $4 billion which is four times
greater than a decade ago.
• The defence industry continues to play a
crucial role for South Australia’s economy
with an estimated 5,200 direct defence
industry jobs and reported revenue of
$1.8 billion in 2010–11.
15%
10%
5%
China
Japan
Australia
South Australia
Canada
New Zealand
Source: Trading Economics and Australian Bureau of Statistics
Germany
US
UK
Italy
France
Ireland
Portugal
Greece
Spain
0%
P9
Economy
Vibrant city
The government is dedicated to making Adelaide a vibrant city for all South Australians.
• The $535 million Adelaide Oval redevelopment is well underway and will be completed in the
March quarter of 2014. This major redevelopment will see AFL games played in the heart of the
city from the 2014 football season.
• Construction of the $350 million redevelopment and expansion of the Adelaide Convention
Centre and Riverbank precinct has also begun. This redevelopment will reaffirm the centre as
one of the world’s premier conference venues. It will also ensure its continuing competitiveness
– supporting the economy and tourism in Adelaide.
P10
2012–13 Budget Overview
• The 2012–13 Budget provides a Stamp Duty Concession that will apply for the next four years
for purchases of off-the-plan apartments in the Adelaide City Council area. This concession
supports the government’s objective of creating a vibrant city for people to live and work
and encourages higher density inner-city living in line with the government’s 30‑year plan.
The concession will provide a full Stamp Duty Concession for the first two years (capped at
stamp duty payable on a $500,000 apartment) and a partial concession for the next two years.
• To provide support to the housing market, the First Home Bonus Grant will remain at $8000 for
a further 12 months and is available to first home buyers who enter into a contract to purchase
or build a new home valued up to $400,000.
P11
Infrastructure
Infrastructure
The State Government continues to roll out a record infrastructure program,
investing $10.8 billion over four years.
y
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P12
2012–13 Budget Overview
• Upgrading the Goodwood and Torrens
rail junctions in partnership with the
Commonwealth (total project cost
$443 million).
4 000
3 000
2 000
1 000
2014-15
2015-16
2013–14
2012–13
2010-11
2011–12
2009-10
2007-08
0
2008-09
• Building the Adelaide Entertainment
Centre’s Park’n’Ride, increasing parking
capacity by 602 spaces ($11.7 million
in 2012–13).
5 000
2006-07
• Expanding the Techport Common User
Facility to support increased activity
of the Air Warfare Destroyer project
($2 million in 2012–13)
Government infrastructure program ($m)
2005-06
• Providing critical traffic‑related
infrastructure supporting the residential
land release at Evanston ($13.7 million
in 2012–13).
• Upgrading the Adelaide Dental Hospital
in partnership with the Commonwealth
($2.1 million over two years,
beginning in 2011–12).
2003-04
• Redeveloping the Parks Community
Centre, which includes replacing the
indoor pools, refurbishing existing
multi-purpose buildings, theatres and car
parking, and creating new outdoor soccer
pitches, recreational spaces and change
rooms ($28.7 million over four years).
2004-05
The 2012–13 Budget delivers many new
infrastructure investments including:
• Strengthening Saltfleet Street Bridge
at Port Noarlunga ($4.0 million over
two years).
2001-02
• building the New Royal Adelaide
Hospital.
• Replacing the Glen Osmond Fire
Station ($4.7 million over two years
beginning in 2011–12).
2002-03
• developing the Riverbank Precinct,
including Adelaide Oval and the
Adelaide Convention Centre
Some previously planned non-essential
infrastructure projects have been
suspended or deferred in the 2012–13
Budget as part of the government’s
response to lower than expected revenues.
These include the suspension of the
electrification of the Outer Harbor and
Gawler rail lines and postponing stage
3A of The Queen Elizabeth Hospital
Redevelopment which will now start
in 2015–16.
• Providing for critical works at
Her Majesty’s Theatre and Adelaide
Festival Centre ($7.7 million over
three years).
2000-01
• building the Sustainable Industries
Education Centre
1999-00
• redeveloping and upgrading major
metropolitan and regional hospitals
• Installation of digital cinema projection
systems in Whyalla, Renmark and
Port Pirie. With the universal adoption
of digital film formats, this upgrade
will ensure these communities can
watch new films enjoyed by the rest
of South Australia ($792,000).
• Improving facilities at Salisbury East High
School and Windsor Gardens Vocational
College ($11.3 million over four years).
1998-99
• duplicating the Southern Expressway
and constructing the South Road
Superway
1996-97
• electrifying the extended Adelaide to
Seaford rail line
Regional community upgrade:
• Building a new state‑of‑the‑art
mining, engineering, defence and
transport training centre at Regency
TAFE ($38.3 million over three years,
beginning in 2011–12).
1997-98
• re-sleepering the metropolitan
rail network
• Constructing new community‑based
supported accommodation for the
disabled ($75 million over four years).
1995-96
The program continues to deliver the
following infrastructure projects:
SA GST revenue grants and
conveyance duty revenue ($m)
8 000
7 000
6 000
5 000
4 000
3 000
2 000
Net debt per person per state
P13
Helping the family budget
Helping the
family budget
South Australian households will benefit from new initiatives to ease cost pressures
and help South Australia remain one of the most affordable places to live.
P14
2012–13 Budget Overview
Operating expenditure
(real terms $)
17 000
20000
15000
5000
0
0
Cost of living capital city
comparison
1.0
0.938
Sydney = 1
Source: AMP.NATSEM Income and Wealth
Report May 2012
300
Sydney
Canberra
Darwin
Perth
Brisbane
Melbourne
Hobart
Adelaide
State Government
concessions ($m)
0.9
State Gove
concession
200
250
150
200
100
Unemployment rates – major economies and South Australia (percent)
25
20
15
10
5
0
South Australia’s disability expenditure ($m)
600
500
400
300
200
P15
2006-07
150
2005-06
• Keeping the First Home Bonus Grant
at $8,000 for eligible first home
contracts entered into before 1 July
2013, reversing the decision to reduce
the grant to $4,000 from 1 July 2012
($5.6 million).
10000
300
A recent report has highlighted Adelaide's
250
cost of living advantages compared to
200
other Australian capital cities. The cost of
150
a basket
15
000 of goods and services in Adelaide
was estimated to be cheaper than in all
other Australian cities.
2012-13
• Extra support for lower income
households experiencing higher
utility prices, including a utilities
literacy program to improve financial
management and energy efficiency
practices ($4.2 million).
• a further five per cent in the energy,
sewerage and Emergency Services Levy
fixed property concessions.
2011-12
• No new taxes announced in the
2012–13 Budget.
• $30 for the maximum and minimum
level of water concession for
owner occupiers
2010-11
• A once-off Water Security Rebate of
either $45 or $75 (depending on usage)
to SA Water’s residential drinking water
customers’ bills from 1 January 2013 at
a cost of $45.7 million. Although there
is a necessity to deliver water security
infrastructure for South Australia, the
government recognises the impact
that increases in water bills have
on households.
16 000
From 1 July 2012, the following concessions
will be further increased by:
2009-10
The 2012–13 Budget delivers the following
initiatives to ease cost pressures on
South Australian households:
2008-09
The State Government has made
An Affordable Place to Live one of its
strategic priorities.
Each year, the State Government provides
funding of around $200 million for
concessions for eligible pensioners and
low income households to ease the cost
pressures of energy, water, sewerage,
council rates, emergency services
levy, public transport, motor vehicle
registration, driver licence fees, stamp
duty on compulsory third party insurance
and the Save the River Murray Levy.
2007-08
The State Government understands cost
pressures facing household budgets.
In particular, low and fixed income earners
are juggling spending on essentials
including housing, water, power,
transport and education.
Disability support
Disability support
The 2012–13 State Budget delivers record spending on disability services.
150
2011-12
2012-13
2010-11
2009-10
2007-08
2008-09
2006-07
2005-06
The State Government is supporting
a fundamental change away from
institutionalisation
and towards
125
community engagement and individualised
funding. This change provides the disabled
and their carers dignity through greater
control in deciding the services they need.
State
StateGovernment
Government
• $21.6 million over four years to
transition
the remaining residents
200
of Strathmont Centre to new
community‑based supported
150
accommodation
• $2.3 million
over four years for
100
the establishment of a disability
community
visitors’ scheme.
50
This scheme will provide an advocacy
and inspection service to disability
0
clients in state funded accommodation
to ensure their rights and wellbeing
are protected.
Itconcessions
offers
the opportunity
to ensure people
concessions
($m)
with
major
and
permanent
disabilities
200
200
receive lifetime care and support,
regardless
of how they became disabled.
150
The State Government supports the
150100
introduction
of NDIS, subject to funding
negotiations with the Commonwealth.
The government
is dedicated to improving
50
the lives of disabled people and their
carers
100 0and has provided $20 million over
three years from 2013–14 to contribute
to an NDIS launch in South Australia, the
details of which are subject to negotiations
with the Commonwealth Government.
2005-06
2005-06
2006-07
2006-07
2007-08
2007-08
2008-09
2008-09
2009-10
2009-10
2010-11
2010-11
2011-12
2011-12
2012-13
2012-13
State Government
Disability
services will
benefit from an
concessions
($m)
investment of $212.5 million over five
200
years supporting the lives of people with
disabilities and their carers. This will
contribute
to a 33 per cent increase in
175
spending on disability services from
2011–12 to 2015–16.
Unemployment rates – major economies
South Australia
Nationaland
Disability
Insurance(percent)
Scheme (NDIS)
More than 22,000 people receive disability
25
support services in South Australia and
demand is increasing at a rate well in
20
excess of population growth.
15 funding includes:
Extra
The introduction of the Commonwealth’s
NDIS is potentially one of the most
fundamental reforms since the introduction
of Medicare.
•10 $106.1 million over five years for extra
services including accommodation
5 support and respite services
• $61.5 million for new high quality
0
community‑based supported
accommodation
South Australia’s disability expenditure ($m)
600
500
400
300
200
100
0
1997– 1998– 1999– 2000– 2001– 2002– 2003– 2004– 2005– 2006– 2007– 2008– 2009– 2010– 2011– 2012– 2013– 2014– 2015–
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Unemployment rates – major economies and South Australia
25%
P16
20%
15%
2012–13 Budget Overview
P17
Health
Health
South Australia’s health sector will benefit from an investment of $437 million in major projects
during 2012–13.
The investments include completing the
Glenside Campus Redevelopment, Queen
Elizabeth Hospital Stage 2 and Country
Community Rehabilitation Centres.
The new system enables the safe processing
of tests, storage of results, laboratory
validation of data and the delivery of test
results to referring clinicians.
The following projects are also scheduled to
finish in 2012–13:
Enterprise Patient
Administration System (EPAS)
– $142.6 million over ten years
• Flinders Medical Centre Redevelopment ($162.7 million)
• Metropolitan Intermediate Care Facilities
($13 million).
The 2012–13 Budget will provide funding for
three new clinical information systems to support
better and safer integrated care, including:
Enterprise Pathology Laboratory
Information System (EPLIS) –
$30.4 million over two years
EPAS will deliver access to a state-wide
integrated electronic health record across
all metropolitan public hospitals, GP Plus
Centres and two country general hospitals.
The EPAS:
• delivers a consistent and complete
electronic health record
• standardises multiple health systems
into a single system
EPLIS will provide a single point of access for
patient results for hospital clinicians, GPs
and specialists.
than o
P18
ESMI is a system that distributes and
stores medical imaging studies and
reports for use by clinicians across health.
ESMI will store 625,000 Medical Imaging
examinations a year to around 600 users.
ESMI will almost completely eliminate the
need for hard copy films, film storage and
retrieval costs.
Extra Commonwealth revenue of
$14.2 million over five years will be
provided, of which:
rsess
u
n
e
r
mo ther state
eds
b
l
a
t
i
hosp
c
i
l
b
u
p
W
monroether states l Statistics 2010-11, AIH
e: A u s
S o u rc
Enterprise System for
Medical Imaging (ESMI)
– $18.7 million over
three years
The government will also support two
mental health projects as part of the
National Partnership Agreement on
Supporting National Mental Health Reform.
th
than o
tha
The new system also enables clinicians to
present the patient with relevant health
information, X‑rays and test results
on‑screen at the patient’s bedside.
Mental health
as:
h
a
i
l
a
ustr
A
h
t
u
So
tors
c
o
d
e
mor er states
11%
%
8
1
%
9
1
• allows real-time electronic access
to clinical information across the
Department for Health and Ageing.
tralia
n H os
pita
• $9.5 million will go towards the
expansion of the Assessment and Crisis
Intervention Services at three sites,
providing 24 hour, year‑round cover
• $4.7 million to establish one “walk-in”
community mental health service.
2012–13 Budget Overview
P19
Skills & training
Skills & training
Investing in skills and training reform will meet the needs of our changing economy
and labour market.
P20
2012–13 Budget Overview
Our state faces skill shortages in the
mining, engineering, defence and
transport industries with around
25,000 – 30,000 expected vacancies
within the next five years.
Mining and Engineering
Industry Training Centre
(MEITC)
The State Government will invest
$38.3 million over three years in
establishing the MEITC in Adelaide.
The MEITC will be a state‑of‑the‑art training
centre for the mining, engineering, defence
and transport industries, located at the
TAFE SA Regency campus.
The MEITC will complement the state’s
leading centres in the arts, building and
construction, and hospitality industries.
It will be completed in June 2014.
By consolidating and upgrading
major training centres on one site,
South Australia will become a national
leader in training for these industries.
Skills for All
To ensure that South Australians continue
to have the right skills demanded by
new and expanding industries, the State
Government will roll out the Skills for All
initiative from 1 July 2012.
Skills for All will reform the state’s
Vocational and Education Training
(VET) Sector to:
• raise the skill level of South Australians
• increase the number of South Australians
with post school qualifications
• Funding for about 1000 Certificate III
and IV level, Diploma and Advanced
Diploma qualifications in identified
areas of industry.
• Concessions for low income students
and VET FEE‑HELP for Diploma and
Advanced Diploma students.
• Improved quality of training with a
rigorous provider application process.
• Improved training pathways for SACE
students and reform of the Adult
Community Education (ACE) Program.
• increase employment participation.
Major initiatives include:
• Students having more choice in
training providers.
• Free training for about 400
courses at Certificate I and II level
and priority areas.
P21
Community safety
Community safety
The 2012–13 Budget continues to invest in community safety ensuring that South Australia
is a safe place to live and work.
Police
Numbers –
The South Australian Government
FTEs
under
the Police Act
continues its strong record of recruiting
5 000
police. Three hundred extra police will
be employed, including more than 100
this year.
This brings the total number of new police
recruited since 2002 to around 720.
4 000
South Australia has the highest number of
police per person of all states in Australia.
The budget will also increase drug driver
testing to help keep drugged drivers off
our roads. Forensic Science SA will receive
$0.5 million over four years to undertake
increased drug driver test analyses to
support SA Police in their prosecution of
drug‑affected drivers.
New spending will strengthen the state’s
corrections system and deliver:
Police
Numbers –
• an upgrade of the electronic security
FTEs
under
the Police Act
systems at Mobilong Prison with digital
5000
technology ($10.9 million)
• construction of a high dependency
unit at Yatala Labour Prison, providing
an extra 26 high security beds
4000($3.5 million).
Also, construction is due to begin later
this year on a new 112 bed cell block at the
Mount Gambier Prison.
3 000
• 86 new prison beds at Port Augusta
Prison ($22.3 million)
Operational police per
100,000 population (2010–11)
Operational
Police Numbers
– police per
100,000
population
FTEs under
the Police
Act (2010–11)
350
5 000
3000
Overall, 224 new beds will be added to the
state’s prison system over the next four years.
Pol
FTE
350
5000
300
300
250
250
200
4 000
4000
150
100
200
50
3 000
0
2016
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
3000
1994
QLD WA TAS VIC NSW
1990
SA
1992
150
Adelaide – most affordable
city ($ per year)
Adelaide
– most
affordable
Operational
police
per
city
(dollars
per year)
100,000
population
(2010–11)
Operational police per
100,000 population (2010–1
75 000
350
80
000
350
70 000
300
60
000
300
50 000
250
40 000
200
70 000
65 000
250
150
30 000
200
20 000
100
10 000
150
0
0
50
Government operating
expenses 2009/10–2015/16
($m)
Government operating
expenses
Adelaide –2009/10–2015/16
most affordable
($million)
city ($ per year)
Adelaide – most affordable
city (dollars per year)
20 000
20
75000
000
80 000
17 500
15 000
P22
70 000
60 000
2012–13 Budget Overview
P23
Emergency services
Emergency services
The State Government is dedicated to supporting emergency services and volunteers.
The 2012–13 Budget delivers new
investments in emergency services
including:
• Extra training officers to increase the
skill base of Country Fire Service and
State Emergency Service volunteers.
This will help ensure that the state’s
18,000 volunteers receive nationally
accredited training ($2.6 million).
• Upgrading the Metropolitan Fire
Service's specialist aerial fire fighting
appliances. These appliances are
used in fighting fires in multi-storey
buildings and medium and high density
housing ($2 million).
P24
• Replacing Country Fire Service
breathing apparatus sets with
the latest technology in breathing
protection ($1.5 million).
• Replacing the State Emergency
Service's marine rescue vessel based
at Kingston in the South East and
two rescue boats located on the
River Murray ($500,000).
The State Government will invest
$1.7 million over four years to support
changes to Emergency Alert. This will
enable emergency warning messages to be
sent to mobile phones located within an
affected area during an emergency.
Disaster recovery
The budget also provides support to
local communities recovering from
natural disasters. This includes helping
councils across the state with repairs to
infrastructure following severe storms
and flooding in late 2010 and 2011
($15.5 million over two years).
2012–13 Budget Overview
River Murray
Achieving a healthy and sustainable River Murray system is essential for all
South Australians.
The river has suffered great degradation as
a result of poor overall management of the
system and long term over‑allocation from
upstream states.
To improve the health of the river system,
the budget allocates $49.1 million over
six years towards securing the future of
the River Murray.
This initiative will improve the
management of wetlands, floodplains
and backwaters along the River Murray
between Wellington and the
South Australian border.
These projects include a provision for
new critical infrastructure to improve
environmental flows.
The State Government will use $2 million of
the Save the River Murray Fund to support
South Australia’s evaluation and response
to the proposed Murray‑Darling Basin plan.
• extra acid sulphate soil investigations
• extra works on riverbank collapse
prevention
• extra science monitoring and
investigations within the
River Murray system.
Also, emergency works will be conducted
including:
• repairs to the waste disposal stations
at Walker’s Flat and Morgan
P25
Strategic priorities
Seven strategic priorities
in the 2012–13 Budget
On 14 February 2012, the State Government outlined seven areas that will prioritise its
decisions over the coming years.
Advanced Manufacturing
• Advanced Manufacturing Strategy
• Techport Australia Common User Facility expansion
• Defence Teaming Centre support
Clean and Green Food Bowl
• Australian Centre for Plant Functional Genomics
• Regional Development Fund
Every Chance for Every Child
• Children in alternative care – growth in funding
• Continuation of the Little Big Book Club
• Infant and Family Support Program
• Extra support for Disability SA
P26
2012–13 Budget Overview
Realising the Benefits of the Mining Boom for all
• Mining and Engineering Industry Training Centre (MEITC) at Regency TAFE
• New State Drill Core Library Facility – support for initial design
• PACE 2020 – Woomera initiative
Safe Communities and Healthy Neighbourhoods
• Extra Health expenditure
• Massive increase in funding for disability support
• Victims of Crime Fund – new initiatives
Vibrant City
• Adelaide Symphony Orchestra – continued support
• Stamp duty relief for ‘off the plan’ apartment purchases
• Adelaide Entertainment Centre Park ‘n’ Ride expansion
• Her Majesty’s Theatre and Adelaide Festival Centre critical works
An Affordable Place to Live for Everyone
• Fees and Charges standard indexation limited to 3.3 per cent
• Water Security Rebate
• No New Taxes
• Increases in concessions
P27
Guide to the 2012–13 Budget Papers
Guide to the 2012–13 Budget Papers
Budget Paper 1: Budget Overview
A summary publication capturing highlights and initiatives from the 2012–13 Budget.
Budget Paper 2: Budget Speech
A copy of the Treasurer’s speech, delivered by the Hon. Jack Snelling MP to Parliament on 31 May 2012.
Budget Paper 3: Budget Statement
A financial report presenting the State Government’s current and estimated future economic performance, fiscal strategy, budget priorities,
expenditure, revenue, assets, liabilities, risks and government business.
Budget Paper 4: Agency Statements
Financial reports presenting the State Government’s current and estimated revenue, expenses and performance by agency.
Budget Paper 5: Capital Investment Statement
A financial report detailing the State Government’s current and estimated capital investment program by agency.
Budget Paper 6: Budget Measures Statement
A financial report detailing the State Government’s expenditure, savings and revenue initiatives.
P28
Cover image: Southern Expressway Duplication
2012–13
Budget Papers
Budget Paper 1 Budget Overview
Budget Paper 2 Budget Speech
Budget Paper 3 Budget Statement
Budget Paper 4 Agency Statements – Volumes 1, 2, 3, 4
Budget Paper 5 Capital Investment Statement
Budget Paper 6 Budget Measures Statement
This publication is printed on FSC certified paper.
Acknowledgements
The images in this publication are reproduced with the
kind permission of various state government agencies.
Content from this publication may be reproduced with appropriate
acknowledgement, as permitted under the Copyright Act.
© Government of South Australia 2012
Published May 2012
ISSN 1440-8589
www.statebudget.sa.gov.au
Department of Treasury and Finance
State Administration Centre
200 Victoria Square, Adelaide, South Australia, 5000
GPO Box 1045, Adelaide, South Australia, 5001
Telephone: +61 (08) 8226 9500
Web: www.treasury.sa.gov.au
www.statebudget.sa.gov.au
2012–13 Budget Paper 1
Budget Overview