By Hannah MacLeod, The McKell Institute Executive Director SA/NT
What you may already know
With few cash splashes or flashy new projects, this year’s South Australian Budget takes a disciplined and deliberate approach in economic restraint — a departure from the norm for a pre-election year.
The Malinauskas Government is playing the long game. With a strong likelihood of governing through the immediate to medium-term, this Budget is designed to reinforce economic credibility and consolidate political stability.
Treasurer Stephen Mullighan has managed to deliver a modest surplus, even with the need to fund:
- $2.4 billion to the Whyalla steelworks rescue package (the “Sovereign Steel Package”)
- $73.4 million to support drought-affected farmers
The McKell Institute’s research in February showed the need for strategic government intervention in Whyalla — a move undertaken by the SA Government.
While the Budget invests heavily in traditional Labor strength areas like health, education, and cost of living, it was interesting to see the Treasurer brand this as a law and order Budget, with a commitment to grow the police force to 5,000 officers by 2030/31. It’s a clear signal: this is a government aiming for broad appeal and long-term political durability, positioning itself firmly in the centre.
For an overview of Budget spending, read the South Australian Budget Summary here.
In Case You Missed It
But some of the best policy ideas don’t always make the headlines. Here’s what you might have missed — but shouldn’t.
🧒 3-Year-Old Preschool Brought Forward
The announcement:
An extra 2,000 children will now be eligible to start three-year-old preschool next year — a full year ahead of schedule.
Why it matters:
Investment in the early years pays big dividends in long-term economic and social benefits. 3-year-old preschool raises education levels, provides the opportunity for early recognition and intervention of developmental delays, and ultimately is a key pillar in breaking the cycle of disadvantage. It’s smart, future-focused policy we applaud.
💰Early-Stage Venture Capital Fund
The announcement:
A $50 million public contribution to support early-stage SA start-ups grow on a national and global scale, with co-investment from the private sector.
Why it matters:
SA wants, and frankly needs, to be reap the rewards of the next economic wave in the areas of space, clean energy, cybersecurity, defence, agrifood and health and medical technology. This fund is designed to help local entrepreneurs scale up without relying 100% of government funding. We think it’s smart industrial policy with long-term dividends.
🤖 Artificial Intelligence in the Public Sector
The announcement:
$28 million over four years to build an AI program across government, starting with sectors like health, policing, allied health, social work, and legal and finance.
Why it matters:
With the Australian Institute for Machine Learning based right here in Adelaide, and the nation’s first Assistant Minister dedicated to the technology, SA is positioning itself as a national AI leader. The policy is measured, responsible, and proactive: use AI to reduce the administrative burden, free up workers, and boost service quality. AI has vast risk but use correctly, enormous reward – and like it or not, it’s here to stay so better to get ahead, not play catch-up.
❤️ Expanding Wellbeing Programs in Schools
The announcement:
$1.5 million to expand programs that promote positive body image, resilience, and mental health in schools.
Why it matters:
This comes on the back of SA’s nation-leading mobile phone ban in schools, and our Premier’s successful lobbying to make Australia the first in the world to ban under 16s from social media. Our young people are on the verge of a mental health crisis, amplified by screen use or a reduction in movement and social interaction. These programs continue the strong focus on mental wellbeing of children and young adults.
These initiatives reflect the McKell Institute’s values: evidence-based, equity-driven, and future-facing public policy. We’ll continue to shine a light on policy that’s good — even if it goes under-reported.
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