The Hon. Rob Lucas MLC

The Hon

Rob Lucas MLC


Media Releases

Marshall Government welcomes 2019-20 Federal Budget

Wednesday, 3 April 2019

The Marshall Government has welcomed the 2019-20 Federal Budget as a ‘major investment in South Australia’s economic future’, with a raft of key infrastructure projects,
regional roads upgrades and tax cuts to lower costs and create local jobs.

 Treasurer Rob Lucas welcomed personal income tax cuts for low-and-middle income earners, small business tax incentives and $525 million for a new apprenticeships and
traineeships scheme which would further strengthen and stimulate economic and
jobs growth in SA.

Mr Lucas said the State Government had been working closely with the Morrison Government to secure a massive $2.6 billion in funding for important infrastructure projects right across SA, including an additional $1.5 billion to help complete the crucial last stage of the North-South Corridor (in addition to the previously announced $1.2

“This will be the single biggest infrastructure project in the state’s history, and together the Morrison and Marshall governments have put $5.4 billion on the table towards completion
of the final section of the North-South Corridor, between Darlington and the River Torrens,” said Mr Lucas.

“This project will be the major route for freight and commuters travelling north and south and will cut travel times and improve economic productivity, while creating thousands of
construction jobs over much of the next decade.”

Mr Lucas also welcomed the landmark 10-year $551 million Adelaide City Deal designed to grow South Australia’s innovation and visitor economy, create jobs and support strategic
population growth.

“This signature agreement cements Lot Fourteen on North Terrace as the most exciting innovation, defence and space site in the nation, home not only to the Australian Space Agency but to the Mission Control Centre as well as a new Space Discovery Centre,” Mr Lucas said.

“It also recognises Adelaide’s world-class reputation in culture and the arts, through funding for a new Aboriginal Art and Cultures Gallery at Lot Fourteen, construction of The
Heysens at Hahndorf and a new visitor centre at Carrick Hill.”

 The State Government also welcomed the Coalition Government’s funding commitment for regional roads, as well key suburban intersection upgrades (Springbank/Daws/Goodwood Rd; Portrush/Magill Rd; Cross/Fullarton Rd) and improved level crossings.

Mr Lucas said small businesses would benefit from a $21.1 million investment in red-tape reduction – part of the federal Small Business Regulatory Reform Agenda - which complemented the Marshall Government’s abolition of payroll tax for all small businesses, which came into effect on January 1, to help drive growth and local investment.

 South Australian families and low-income earners would also benefit from personal tax cuts and a one-off Energy Assistance Payment for almost four million Australians to help pay their power bills ($75 for singles and $125 for couples).  

 The 2019-20 Federal Budget also includes latest estimates of GST revenue for all
states, although these are not decisions of the Federal Government. These
estimates are based on estimates of the national GST revenue pool and
independent decisions by the Commonwealth Grants Commission on each state’s
share of the national GST revenue pool.

The 2019-20 Federal Budget GST estimates confirm a significant cut of $171m in
2018-19 and $517m in 2019-20. These estimates are even larger than those
released in February 2019 based on the Commonwealth Grants Commission 2019

 Although these GST estimates change on a yearly basis, early estimates for 2020-23 show
possible further annual GST reductions of between $630m and $730m.

“After inheriting a massive $313m deficit from the former Labor Government in its last
budget year 2017-18, the Marshall Liberal Government will still deliver a
balanced budget this year (2018-19),” said Mr Lucas.

“However, the size of the estimated GST cut for 2019-20 will make it a real challenge for
the Government to deliver a balanced budget in 2019-20 and we will consider our
response as we prepare our own State Budget for June 2019.”


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Telephone: +61 8 8226 1866

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