Another surplus is on the books for South Australia, marking the third time in a row that the Malinauskas Labor Government has managed to stay in the black. With a forecasted $18 million surplus for the 2024–25 financial year and more predicted across the forward estimates, the financial trajectory looks steady. But beyond the clean bookkeeping, it’s the economic momentum that’s catching attention.
New figures from the Australian Bureau of Statistics point to South Australia having the fastest-growing economy in the country. The data, focused on State Final Demand (SFD), shows a 1.3 per cent increase for SA in the March quarter alone—well above Queensland’s 0.7 per cent and far ahead of the national GDP figure of 0.2 per cent. The annual SFD growth sits at 3.1 per cent, compared to the national figure of 1.3 per cent.
For anyone unfamiliar, SFD tracks state-level spending activity. The rise in South Australia’s figures is linked to several areas: public investment jumped 6.9 per cent, dwelling investment increased by 3.8 per cent, new business investment climbed 3.3 per cent, and household consumption edged up by 0.8 per cent. It’s an ensemble of growth, with no single sector doing all the lifting.
This spread of investment across multiple fronts hints at an economy not just ticking boxes, but gaining traction in the areas that often have longer-term knock-on effects. Public investment going up nearly 7 per cent is no small thing. It typically reflects spending on infrastructure—roads, schools, hospitals—and that often comes with both immediate job creation and lasting value. The increase in dwelling investment suggests confidence in the housing sector, whether it’s builders breaking ground on new developments or people renovating and upgrading their homes. Business investment nudging up by over 3 per cent could reflect companies buying equipment, expanding their premises or scaling up in other ways. And while a 0.8 per cent rise in household consumption may seem modest, it’s still noteworthy in a time where higher interest rates and inflationary pressures have tested family budgets.
Treasurer Stephen Mullighan has described the results as clear proof that South Australia’s economy is not just performing, but leading the pack. He’s pointed to the easing of inflation and the prospect of lower interest rates as factors likely to further lift household spending. For small businesses—many of which are finely tuned to the rhythms of local consumption—this sort of environment makes a real difference.
The numbers are also a sign that the Government’s various cost-of-living measures, along with its broader economic strategy, are landing where they need to. There’s been a conscious effort to keep money moving through the system, whether via investment in services or relief at the household level. The combination of public and private sector growth is helping create a feedback loop that’s sustaining itself.
It’s worth noting that the third consecutive surplus hasn’t come at the cost of growth or service delivery. Often, budget surpluses are associated with cuts or belt-tightening, but these results suggest a more balanced equation. The Government has kept spending active and targeted, while still maintaining fiscal discipline. That’s not easy to do—especially in an environment where pressures from global markets, supply chains, and domestic inflation haven’t gone away.
Of course, these figures only capture a snapshot. A single quarter, or even a single year, doesn’t tell the full story. But what they do suggest is that South Australia is in a position of relative strength. It’s leading on economic growth, it’s posting surpluses, and it’s managing to do both without relying on short-term fixes or flashy announcements.
The pattern of spending also speaks to a measured confidence across the board. Whether it’s government outlays or individual households loosening the purse strings slightly, it reflects a broader belief that the economy isn’t teetering—it’s gathering pace. Dwelling investment up nearly 4 per cent isn’t something that happens on a hunch; it’s typically driven by planning, approvals, and access to finance. The same goes for business investment. These are forward-looking decisions, not one-off purchases.
It’s possible, of course, that national economic conditions could shift. Global markets, energy prices, or unforeseen disruptions could apply pressure in unexpected ways. But for now, the direction appears steady. The numbers show a state growing on its own terms and doing so while keeping its books tidy.
The story behind the surplus isn’t just about accounting. It’s about what’s happening on the ground. Shops seeing more foot traffic. Construction sites busy with new builds. Councils working with state funds to upgrade infrastructure. All of it forms the undercurrent of economic health that’s harder to quantify, but just as important to understand.
The Malinauskas Government, now heading into its third surplus, will no doubt use this as evidence that its strategy is working. Whether it’s enough to win over long-term sceptics or quiet those who favour deeper structural reforms remains to be seen. But the figures offer something solid to point to.
Treasurer Mullighan’s remarks tie the result to both the state’s economic performance and the Government’s own measures. And with household consumption beginning to tick up, he’s likely hoping for continued good news in the next quarter’s data. For now, the combination of strong investment, surplus management, and economic leadership has given South Australia a lead many weren’t expecting it to take.
Short of shouting it from the rooftops, the message is clear enough. The books are balanced. The growth is real. And for the third year running, South Australia is writing its own budget script—and sticking to it.
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💰#SouthAustralia posts 3rd straight surplus ($18M forecast) & leads national growth with 1.3% ¼ly SFD rise. 🏗️ Driven by public (+6.9%) & dwelling (+3.8%) investment. 📈 @SMullighan credits balanced spending & economic momentum. #TheIndianSun @ABSStatshttps://t.co/pkc970hMCn
— The Indian Sun (@The_Indian_Sun) June 5, 2025
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