More taxes, more cuts in SA

By Melanie Sjoberg

ADELAIDE -- The state Liberal government crowed on May 27 about delivering a “balanced budget” for the next financial year. Treasurer Rob Lucas laid the blame for tax hikes on those who opposed the privatisation of the state's electricity corporation.

He reassured an increasingly sceptical public that SA is still the lowest taxing state. This will sound hollow to households, who will suffer an average tax and fee increase of $89 per person through the imposition of an emergency services levy, a homeowners' levy, and increases to vehicle registration and drivers' licence fees. In addition, general government charges will rise by 2.1%.

SA has the highest unemployment rate on the mainland, but the budget provides only token gestures: an extra 200 youth traineeships (that is, 12-month temporary jobs) and funding to encourage greater participation of year 11 and 12 students in vocational education (that is, unpaid work for local employers).

Health funding has been cut by $46 million. The government claimed the education budget has been increased by $14 million, but failed to mention that this is undercut by its previously established three-year strategy of funding reductions, with a target of more than $40 million this financial year.

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