Overall budget position
The 2026-27 State Budget is mostly focused on cost-of-living relief, infrastructure delivery, skills and productivity. The government is forecasting a general government net operating surplus of $189 million in 2025-26, increasing to $223 million in 2026-27, with surpluses projected going forward. The Budget Overview states that the government is forecasting $1.4 billion in projected operating surpluses and has made a continuing commitment to no new taxes or tax increases.
Net debt is still increasing, largely due to major infrastructure projects, including the North-South Corridor, River Torrens to Darlington project and the new Women’s and Children’s Hospital.
Skills, VET and Training
The budget contains clear measurables on trades, technical education and workforce capacity, although most of the major skills measures are directed towards construction, housing AUKUS and TAFF, rather than the automotive sector specifically.
Key measures include:
- $150 million over four years to establish and operate three new technical colleges in Murray Bridge, Marden and Gawler. This expands the existing technical college network, which the Budget Overview states already has more than 1,000 students enrolled for the 2026 school year.
- $29.5 million over eight years to create 1,000 new pathways into the construction workforce through apprentice training, industry partnership incentives and scholarships.
- $26.8 million over five years for AUKUS skills, supporting more than 1,000 university, trade and upskilling opportunities in areas including mechanical and fabrication engineering, electrical and electronic engineering, maritime, nuclear and submarine naval architecture.
- $25.5 million over four years for a new Mount Barker TAFE multi-trade vocational training workshop. Budget Paper 5 states the workshop will support up to 1,200 apprentices in electrical, plumbing and carpentry, reduce travel time for regional apprentices and support delivery under the National Skills Agreement.
- $28.2 million in 2025-26 for non-government training providers to meet higher training demand, including in VET in Schools delivery, funded from the National Skills Agreement.
From MTA’s perspective, this potentially creates an advocacy opportunity to position automotive as an essential trade workforce requiring the same attention as construction, defence and energy.
Automotive and MTA -specific measures
The most direct MTA-specific item identified is funding for the MTA automotive trades mentoring program as promised government election commitment. Budget Paper 5 provides $140,000 in 2026-27 and $140,000 in 2027-28 through the Department of State Development.
The budget also includes $2 million over four years for support South Australian car and motorcycle clubs. The funding is intended to help clubs meet growing operating costs, increase participation, host events, improve or upgrade facilities, build capacity and streamline operations
Another automotive-adjacent measure is the continuation of support for fuel price reporting compliance. The budget provides $1.3 million over four years for additional inspectors to undertake an extra 100 fuel price compliance inspections per month. This is part of a broader fuel response package that also includes real-time consumer information through RAA, with increased penalties for fuel retailers that fail to comply with real-time fuel data requirements.
This will see stronger emergency powers and increased penalties for petrol stations that fail to provide real-time fuel data, and heavy freight reforms expected to reduce fuel usage by up to 18 per cent.
Fuel, energy and transport
The government has allocated $40 million to secure a strategic diesel reserve of up to 20 million litres at Port Bonython, with the stated aim of improving South Australia’s fuel security during global supply uncertainty.
The Budget also refers to the state-funded 5.7 cent per litre fuel excise cut, in addition to the Commonwealth’s 26.3 cent per litre cut, delivering a combined 32 cent per litre reduction until 30 June 2026.
The budget also provides $4.4 million in 2025-26 for the Remote Area Energy Supply Scheme to respond to increased diesel fuel costs and additional customer demand, ensuring continued energy services to remote communities and townships.
For transport, the Budget includes $3.5 million over three years for a battery-powered passenger train trial on the Belair line. Budget Paper 5 notes the government will work with industry to develop requirements, with prototype testing anticipated to commence in 2029
Productivity, red tape and government interface
The Budget places productivity and red tape reduction as a broader economic priority. The South Australian Productivity Commission will undertake a red tape reduction review to identify opportunities to reduce regulatory burden, streamline business dealings with government, unlock investment and lower business costs. The Budget Overview notes the review will be informed by consultation with industry.
This is relevant to MTA because the automotive sector has significant interfaces with government regulation, licensing, registration, inspections, consumer law, training and road transport administration. The review could provide a useful pathway for MTA to raise longstanding issues around administrative burden and processes.
The Budget is positive for trades and skills overall, but automotive receives limited direct attention beyond the MTA automotive trades mentoring program, fuel price reporting compliance and car club support.
