The final South Australian budget before the 2026 election has drawn a mixed response from the local government sector.
Councils have welcomed modest wins in freight and planning, but say these may be offset by funding shortfalls in regional roads, infrastructure and climate adaptation.
SA’s 2025–26 State Budget includes a $131 million commitment for Stage 1 of the Greater Adelaide Freight Bypass. This investment in the High Productivity Vehicle Network aligns partially with the federal government’s $525 million pledge, but councils say it stops short of the full funding needed to realise the project’s national productivity and safety benefits.
“As a nationally significant project, we need to see the full funding package and move toward delivery,” said LGA of SA CEO Clinton Jury.
“There is clear precedent for a federal-state 80/20 split on major freight corridors, and that’s the model we support.”
Beyond freight, regional road funding remains a key concern.
The budget allocates $7.5 million over three years for regional roads – far below the $2 billion known maintenance backlog. Councils say they continue to shoulder growing pressures with insufficient support for essential transport infrastructure.
Jury said the budget’s lack of targeted investment in enabling infrastructure, waste transition and road maintenance “falls short on key local government priorities,” despite some welcome initiatives in planning reform and housing.
The LGA has also flagged the limited support for drought relief.
While the $73.4 million package announced earlier provides some assistance, Jury said “the current response doesn’t go far enough,” especially as rural communities and producers endure ongoing dry conditions.
In planning, continued funding for the ePlanning platform and PlanSA upgrades is seen as a positive step, but the absence of support for regional planning capability and council engagement remains a gap.
The LGA welcomed confirmation that work will continue on the long-awaited Community Engagement Charter and council election review.
Despite previous advocacy for tangible circular economy measures – such as expanding the container deposit scheme and strengthening product stewardship – the budget contains no dedicated investment to help councils manage rising waste costs or transition their services.
Other budget measures include:
- $270.1 million for Playford Alive East and $135.1 million via the Housing Australia Future Fund
- $14 million for Adelaide beach sand replenishment
- $109.7 million for River Murray environmental flows
- $45 million over three years for a new Mount Barker Hospital
Jury acknowledged the establishment of the State-Local Government Economic Partnership Accord, but said it must now translate into real joint action on infrastructure, planning and major investment.
