The Albanese Government’s budget delivered last night includes $60 million towards constructing the $120m Majors Road interchange with the Southern Expressway and $200m towards a $400m project that will remove two level crossings where the Glenelg tramline crosses Marion Road and Cross Road.

It also includes a new $400 million fund to upgrade key freight routes including the Dukes, Stuart and Augusta highways.

Funding for the expansion of Flinders Medical Centre has also been confirmed with $200 million over 6 years from 2022–23 for the project and upgrades to the Repat Health Precinct in Daw Park.

The government also maintained its $4.975 billion commitment to the North South Corridor project which is currently under review to determine the best way forward

Finance Minister Katy Gallagher said infrastructure funding to South Australia in the budget was in the order of $1.3 billion and flagged cost increases across a number of projects including the North South Corridor project.

“We genuinely want to work with state and territory governments through the rollout of funding,” Gallagher said.

“We are carefully going through where there are cost escalations, working with the states and territories with how we manage some of those costs – in the infrastructure portfolio we’ve got issues around labour, we’ve got issues around materials and supply, that is placing pressure on a whole range of projects.”

A state government spokesperson said the budget has revised a number of economic forecasts including the national GST Pool.

“[The Federal Government] is now forecasting a 12 per cent increase in revenues in 2022-23, up from 9 per cent previously forecasted. This will see an additional $419m in GST revenues to SA this financial year,” the spokesperson said.

“The federal budget has also revised economic growth forecasts, with national growth to fall to 1.5 per cent next financial year. This will impact the state’s forecasts when the SA Mid-Year Budget Review is handed down in a few weeks.

“SA Treasury will determine what these projections mean for revenues in the coming years for the state’s Mid-Year Budget Review.”

State Treasurer Stephen Mullighan said the federal commitment to infrastructure was well received.

“This federal budget is undoubtedly good news for South Australia locking in additional spending on infrastructure projects and a commitment to maintain funding for the North South Corridor,” Mullighan said.

“Strong economic conditions this year has resulted in a boost to GST revenues this year, however the uncertain economic outlook may mean all of these revenues won’t materialize.”

Mullighan said the $4.6 billion commitment to increase child care subsidy rates and reduction to medicine costs was also well received by the state government.

“The boost to childcare subsidies and reduction to medicine prices is welcome cost-of-living relief and complements our Government’s doubling of the cost-of-living concession in the recent State Budget.”

States and territories have agreed to match the Federal Government’s commitment of an additional 10,000 new affordable homes across Australia over five years from 2024. 

“We’ve worked closely with Jim Chalmers to reach the Housing Accord and we’re looking forward to increasing the number of affordable homes to South Australians in the coming years,” Mullighan said.