Write to Jim Chalmers' - Treasurer's drought support frustrations aired during state budget

Write to Jim Chalmers' - Treasurer's drought support frustrations aired during state budget

South Australian Treasurer Tom Koutsantonis and Premier Peter Malinauskas arriving for the state budget address on Thursday. Picture by Quinton McCallum

South Australian Treasurer Tom Koutsantonis laid bare the state government's frustrations with their federal counterparts in securing drought support during the state budget media lock up today.

Responding to questioning about the potential to expand the $200 million drought loan scheme to more regions than the three eligible, Mr Koutsantonis made several references to the federal government's inability to step up to the plate.

State-backed low-interest loans, of up to $250,000 announced in February, were restricted to farmers in the Murray Mallee, Riverland and Upper North regions.

There was particular grievance from west coast Eyre Peninsula farmers that their region hadn't been included.

Mr Koutsantonis said the state government could not 'keep stepping into a place in which the Commonwealth should be providing support'.

He said with the Commonwealth overseeing the majority of taxes, they should be in a position to provide the drought assistance necessary.

"They should be the ones offering drought assistance. If their scheme is not generous enough, the question then becomes should the state supplement it?"

"The state doesn't have the same taxing powers and revenue the Commonwealth does. I would love to offer more low interest loans... but where does it end?

"I'd like you to write to Jim Chalmers (federal Treasurer) and say to him you'd like him to offer a more generous support package, like the state government has in those areas."

Regional health and education sectors were the primary winners for country SA in the state budget, with agriculture's primary spending accounting for programs already commenced, including the $200m drought loan scheme.

In a budget proclaimed by Mr Koutsantonis as one of few surprises that provided "certainty to businesses and relief for families", there was little in the way of new spending in the Primary Industries portfolio, with the $200m for drought loans the big ticket item, as well as the $7.5m for the Mundoo Island Station acquisition, announced in January.

An additional $17.2m has been budgeted for bushfire, storm and flood response, including $13m for the Country Fire Service.

Listed in the budget papers is $6m over four years for 'native vegetation heritage agreements on privately managed properties to support improved biodiversity', and $6.1m to increase SA's contribution to the Murray-Darling Basin Joint Programs initiative.

Over two years, $11.7m will be spent to support the Alternative Water Supply Efficiency Measures program.

There is $8m for a Future Forward Fund - $6m to 'drive innovation in industry sectors' and $2m to support the Wood Fibre and Timber Industry Masterplan.

$1m over four years will aid the Pastoral Lands Unit with land condition assessments, while $800,000 over two years will support the Kangaroo Island Landscape Board to eradicate feral cats.

$500,000 has been allocated for industrial hemp trials, and $250,000 for 'the development of a comprehensive strategy to strengthen the long-term prosperity of the McLaren Vale region by supporting agricultural diversification, expanding market access and drive tourism investment'.

SA Premier Peter Malinauskas speaking on his government's budget, which was focused on providing 'certainty to businesses and relief for families'. Picture by Quinton McCallum

Agricultural targets for 2026-27

Total expenses for PIRSA, including employee wages and general supplies and services, was listed at $312.9m, up from the 2025-26 budgeted amount of $299.6m.

Targets for the department across 2026-27 include the delivery of the drought support loan package, and implementation of stage two of the mandatory eID program to meet national traceability requirements ahead of 2027.

Biosecurity targets include the start of the new 290km wild dog fence build along the SA-NSW border, connecting the existing fence to just north of the River Murray, as well as completing consultation for Biosecurity Act 2025 regulations.

Among SARDI's targets are establish on-farm demonstrations to 'increase awareness of greenhouse gas emission sources and to showcase practices to manage emissions intensity in grain production', as well as assessing 'effectiveness of different delivery systems for methane-mitigating additives in grazing sheep'.

Debt increase necessary for state economy's growth, says Treasurer

While the Treasurer faced questioning about the state's expected net debt of $53 billion by 2029-30, he said its net debt to revenue ratio was the sign of a strong economy and debt that was manageable.

The state's net debt was $13b when Mr Koutsantonis was last Treasurer. He attributed the Covid pandemic which followed and major projects like the North-South Motorway as reasons for debt, and said these were worthwhile investments in SA's economy.

He spruiked the 2026-27 budget as one with no new taxes and no increases in taxes.

State budget wins for country SA included health and education initiatives, as well as a $13 million injection into the Country Fire Service.

The budget's big ticket items included a $2.5 billion housing package, including $1b for housing and apartment fast track funds, $673.6m over ten years to 'build an effective domestic, family, and sexual violence system', and $319m over two years for Whyalla Steelworks support funding.

There is $230m for a Thriving Kids program, the $200m drought loan scheme taken into account, and $174m over four years to make public school free.

There will be a $45.4b health spend over four years, with an additional $1.7b in SA health services over five years.

Regional health and education measures include $29.5m over four years to establish OSHC services across regional SA, $22m over four years for a new emergency department at Clare Hospital, $16m over four years to expand the Patient Assistance Transport Scheme, $15m over four years to support infrastructure upgrades at Murray Bridge Soldiers' Memorial Hospital, $13.9m over four years for regional ambulance services including in Barmera, Ceduna, Millicent and Yorketown, $13m over two years for new medical education and training facility adjacent to Mount Gambier Hospital, and $4m over four years to establish specialised regional women's health clinics.