New funding of more than a billion dollars for regional South Australia will support farmers affected by the impact of drought, invest in health services across the state and continue the task of improving our road network.
The 2026-27 State Budget contains new investments totalling $1.2 billion for our regions, building on billions of dollars in new initiatives across recent budgets.
It includes our generational investment in Whyalla and the Upper Spencer Gulf, with funding to support the sale of the steelworks and ensure we retain a sovereign national steelmaking capacity right here in South Australia.
We are also investing $8 million over four years to advance the prosperity, sustainability and resilience of South Australia's primary producers through the Primary Industries Future Forward Fund. The fund will support research and innovation that benefits our state's grain growers, seafood producers, livestock and dairy farmers, wine producers, horticulturalists and timber industries.
The Future Forward Fund will assist our primary industries to:
- Invest in research and development, innovation, and cutting-edge technologies;
- Promote South Australian products and support businesses to respond to environmental and market pressures;
- Increase sustainability and implement greener practices throughout the supply chain;
- And improve preparedness for environmental disruptions, biosecurity threats and other emerging issues.
The Future Forward Fund builds on the successful model of the South Australian Wood Fibre and Timber Industry Master Plan, which will now form part of the new fund. The new funding will be extended to other primary industries including livestock, seafood, grains, horticulture and wine.
Other new funding measures include:
Multi-regional
- $200 million drought loan scheme to support drought affected grain and livestock farmers across the Murray Mallee, Riverland and Upper North regions.
- $90 million over five years towards safety upgrade works on the South Eastern Freeway.
- $29.5 million over four years to establish Out of School Hours Care services across regional South Australia.
- $27.9 million over four years to support upgrades and redevelopment projects across various regional government school facilities.
- $21.5 million over four years for the expansion of the social housing energy performance initiative in regional areas.
- $19 million over two years to build affordable homes in regional areas under the rent to own scheme.
- $16 million over four years to expand the Patient Assistance Transport Scheme.
- $13.9 million over four years to provide additional support for regional ambulance services including in Ceduna, Yorketown, Millicent and Barmera.
- $12.4 million over four years to drive mineral exploration through the (PACE) Plan for Accelerating Exploration partnership initiative.
- $11.7 million over two years to support the Alternative Water Supply Efficiency Measures program.
- $9 million over five years to upgrade vacant South Australian Housing Trust homes in regional areas.
- $5 million over two years to undertake the planning work for two new police stations at Mount Barker and Murray Bridge.
- $1.8 million over four years to establish Project 450, a South Australian Wine Industry Association-led industry development and support fund.
- $1.2 million in 2026-27 to improve the iconic Heysen Trail and upgrade infrastructure at Flinders Chase National Park.
Adelaide Hills
- $80 million over five years to upgrade the Adelaide and Hawthorn Road intersection in Mount Barker.
- $25.5 million over four years to construct and operate a new multi-trade vocational training workshop at the TAFE SA Mount Barker campus.
Murray and Mallee
- $54.5 million over four years to establish a Technical College in Murray Bridge.
- $15.1 million over four years to expand Murray Bridge public transport by improving services, lowering fares, and increasing bus frequency.
- $15 million over four years to support infrastructure upgrades at the Murray Bridge Soldiers' Memorial Hospital.
- $5.6 million over four years for a dedicated ambulance transfer team at Murray Bridge.
Yorke and Mid North
- $90 million over four years for upgrades along the Horrocks Highway, including the construction of overtaking lanes, lane extensions, culvert replacements and road widening to improve traffic flow and enhance safety. A Commonwealth Government contribution towards this critical project will be sought on an 80:20 basis.
- $22 million over four years to deliver a new Emergency Department for Clare Hospital.
Limestone Coast
- $16.5 million over four years to support the operation of 59 temporary beds at Mount Gambier Prison.
- $13 million over two years to build a new, medical education and training facility adjacent to Mount Gambier Hospital.
Fleurieu and Kangaroo Island
- $7.5 million in 2025-26 for the acquisition of Mundoo Island, Ewe Island and Long Island to expand the national park and strengthen environmental resilience across the Murray Mouth.
- $800,000 over two years for the Kangaroo Island Landscape Board to support the eradication of feral cats on Kangaroo Island.
- $250 000 in 2026-27 to develop a strategy to strengthen the long-term prosperity of the McLaren Vale region.
Barossa/Light and Lower North
- $3 million over two years to deliver a full business case for the new Greater Northern Adelaide Hospital.
- $916 000 in 2025-26 to the Adelaide Plains Council for road sealing works at Thompson Beach.
As put by Peter Malinauskas
This budget recognises that a strong South Australia depends on strong regional communities.
With new funding in this budget of more than a billion dollars for regional South Australia, we are backing communities with targeted investments that create jobs, improve services and strengthen local economies.
We are delivering practical support for regional South Australians, from drought assistance and housing to health services and economic development.
As put by Tom Koutsantonis
Primary producers are the heart of South Australia's economy, communities, and way of life, contributing more than $17 billion in Gross State Product each year.
The 2026-27 State Budget provides a raft of new funding for measures to help drive our regions and the sectors that operate in them.
We will work with our primary producers and forest industries to deliver a Primary Industries Future Forward Fund that delivers for their present and future needs, and invests in the projects that will strengthen the heart of our economy.
The Fund will help to strengthen our grain growers, wine producers, livestock farmers, horticulturists and forest industries.
As put by Clare Scriven
By investing in South Australia's regions, we are investing in our future.
This budget renews our commitment to build a better and brighter future for primary industries and regional communities in our state, because they are the key drivers of our economy.
We are delivering more than $1 billion in new funding, in addition to the billions already allocated and invested during our first term in Government.
From delivering much-needed support to our primary producers and upgrading the transport corridors that connect our state, to building new homes, more opportunities and a bigger health system, Labor is investing in all of South Australia – not just Adelaide.
