In brief
The 2026-27 South Australia (SA) State Budget was delivered on Thursday, 4 June 2026 by Treasurer Tom Koutsantonis. The Budget introduced no new broad-based taxes or changes to State tax policy and projects a $223m general government net operating balance surplus in 2026-27.
In detail
Significant funding has been committed in the Budget toward cost of living relief, housing, health and infrastructure. Surpluses totalling around $1.4bn are projected across the forward estimates, while general government net debt is set to rise from $24.2bn in 2025-26 to $40.9bn by 2029-30 — a reflection of investment in productivity-enhancing infrastructure including the North-South Corridor and the new Women's and Children's Hospital.
A centrepiece of the SA Budget is a $2.5bn housing package supporting the Government's target of 13,500 new homes per year, with the Government estimating that first home buyers have already received around $180m in stamp duty relief on new homes to date. Key elements include:
- $1.3bn Rent to Own program (in partnership with the Commonwealth) — delivering 2,000 affordable homes over eight years, leased at 75% of market rent for up to two years, with tenants given an option to purchase by the end of the lease term.
- $500m Housing Fast-Track Fund — to secure and sell strategic land for housing development.
- $500m Apartment Fast-Track Fund — under which the Government will act as guarantor on up to 50% of dwellings in eligible off-the-plan developments.
Tax measures
No new taxes or tax increases were announced in the 2026-27 Budget. However, the Budget formalises a previously announced downsizer stamp duty concession, providing a 100% transfer duty exemption for South Australians aged 60 years and over who sell their existing home to purchase a smaller, new or off-the-plan dwelling valued up to $2.0m. Applying to contracts entered into on or after 25 March 2026, the concession delivers savings of up to $103,830 per transaction, at an estimated cost of $77.0m in forgone duty over the five years from 2025-26. Eligibility will be administrated via revenue ruling and is not currently intended be legislated, with detail set out in RevenueSA guidance.
Revenue estimates
- State taxation revenue estimates have been revised upward by $298m compared to estimates in the 2025-26 Budget, with growth of around 6.5% anticipated during the year. This growth is largely attributable to strength in conveyance duty and land tax collections, reflecting strong property market conditions.
- Growth in total taxation revenue of 4.4% in 2026-27, with annual average growth of around 3.7% across the four years to 2029-30, supported by estimated growth in payroll tax, conveyance duty and land tax revenues.
- Conveyance duty revenue in 2025-26 is estimated to be $158m higher than forecast in the 2025-26 Budget, reflecting stronger than expected growth in residential property prices. Overall collections are forecast to rise by 8.2% in 2025-26, primarily driven by strong price growth in residential property transfers, partially offset by lower duty from large transactions and the foreign owner surcharge. A more modest revenue growth outlook of around 3% per annum, on average, is then expected over the four years to 2029-30.
- Land tax revenue estimates have been revised up $37m since the 2025-26 Budget but assume site value growth will return closer to trend levels of around 3% per annum from 2027-28 following higher than average growth in recent years. In 2026-27, residential site values are estimated to increase by around 16% and non-residential site values by around 10%, reflecting the strength in the property market during 2025. This results in strong growth in forecast private land tax collections of around 10% in 2026-27.
- GST revenue growth reflects forecast growth in the national GST pool of 6.7% in 2025-26. Growth in GST revenue grants is expected to be negative in 2027-28 due to an expected decline in South Australia's grant share, reflecting that interstate mining revenues are forecast to return to more normal levels across the forward estimates and that South Australia will receive a higher than per capita share of Commonwealth infrastructure grant funding impacting across the forward estimates period.
- Payroll tax receipts for 2025-26 have been revised up by $60m since the 2025-26 Budget, reflecting stronger than expected collections experience, with total revenue growth of 7.6% expected in 2025-26. Payroll tax revenue is expected to grow by around 5.4% per annum on average over the four years to 2029-30, broadly consistent with estimated underlying growth in employment and earnings.
The takeaway
No new taxation measures were announced in the 2026-27 South Australian Budget. The previously announced downsizer stamp duty concession is currently administered without amending legislation, with detailed eligibility criteria set out in RevenueSA guidance.
State taxation revenue estimates have been revised up materially since the 2025-26 Budget, principally reflecting a strong property market and continued employment growth, and the 2026-27 land tax thresholds will increase by around 12.4% in line with average site value increases.
Contact us
Rachael Cullen
Partner, Tax, PwC Australia
Ari Esmerian
Partner, State Taxes, PwC Australia
Alex Ta
Director, PwC Australia
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