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AAP
AAP
Politics
Tim Dornin

Housing, health and hip-pocket support in SA budget

Stephen Mullighan says health spend, flooding and less GST have delayed a planned return to surplus. (Kelly Barnes/AAP PHOTOS) (AAP)

Health, housing and hip-pocket relief will feature heavily in the South Australian budget that will confirm a plunge into the red for the state's finances.

Treasurer Stephen Mullighan will deliver the Labor government's second economic blueprint on Thursday amid calls for more support for a struggling business sector and assistance for the most vulnerable in the community.

The government will unveil a $249 million deficit for 2022/23, in sharp contrast to the $233m surplus forecast in the budget last year.

The deterioration has been blamed on increased spending on health and child protection, about $90m in lower GST returns and the cost of relief and assistance measures following summer's flooding along the Murray.

Mr Mullighan said the government still aimed to deliver budget surpluses in future - including in 2023/24 - but its plans would be put on hold for 12 months.

"We were trying to transition the budget from an $830 million deficit back into a surplus under the first year of this government but with the additional pressures on the budget in health and from floods and a bit less GST than we were expecting, we've had to delay those plans by a year," the treasurer said.

"We've taken the responsible decision to continue to invest in supporting the community where necessary."

That will include funding to ease the housing crisis, a package of measures to reduce cost-of-living pressures, especially energy prices, and an extra $2.3 billion for health, in a continuing bid to ease pressure on the hospital system.

The Australian Medical Association welcomed the government's recent commitments but said there was much still to be funded if South Australians were to receive the health care they needed now and in the coming years.

'We cannot look past the ongoing code whites and ramping that continue to create system pressures," state president John Williams said.

"Patients continue to wait unacceptably long times for ambulances and then for admission."

Peak welfare group, the South Australian Council of Social Service urged the government to "keep spending boldly" to address social inequity.

"The cost-of-living crisis is front of mind for all of us, but it is most acutely felt by those South Australians who are doing it the toughest," Chief Executive Ross Womersley said.

"This budget represents an opportunity for the government to act bravely."

The Liberal opposition similarly called for more action to ease hip-pocket pain.

"Broad cost of living relief for all South Australians remains at the top of our wish list for this year's budget," Opposition leader David Speirs said.

"While other states like Queensland, Victoria and Western Australia have implemented schemes to support their households, Labor's left South Australian families in the lurch."

Business SA said local companies and traders needed practical and innovative support.

"While some businesses have done well off the back of major events this year, many are facing significant challenges in complicated economic circumstances," chief executive Andrew Kay said.

"Escalating inflation, soaring interest rates, unmanageable energy costs, labour shortages and wage increases are all factors contributing to an unfavourable business environment."

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