The South Australian Government has released its 2025–26 State Budget, including investments to reduce energy costs, combat water scarcity, boost electric vehicles and prepare the state to host a global climate conference.
Energy efficiency grants
To support cost of living relief, the State Government has allocated $20 million to the Powering Business Grants, which provides financial assistance to small and medium businesses to invest in energy efficiency equipment or improvements to reduce and manage energy use and costs.
Eligible businesses and organisations will be able to apply for a grant ranging from $2500 up to $75,000.
The State Government said this investment builds upon the successful rollout of the small business energy efficiency grants, which have supported nearly 1500 South Australian businesses over the last 12 months.
Major infrastructure projects
The 2025–26 Budget includes $27.3 billion over four years for priority infrastructure projects – including a $330 million allocation for the Eyre Peninsula Desalination Plant, which is set to be completed in June 2027.
Digitisation and cyber security
The South Australian Government has also pledged to expand the Digital Investment Fund by $103 million, bringing the total value of the digital investment fund to $326.5 million.
This includes $75 million over four years to provide increased and ongoing capacity for the investment in digital modernisation and cyber security initiatives across the South Australian public sector.
Environment and water security
In partnership with the Federal Government, the South Australian Government is investing $109.7 million in a range of measures to support the River Murray, enhance environmental flows, improve basin health, increase usage of metering telemetry and modernise planning and forecasting. Key allocations include:
- $71.1 million over three years for River Murray constraints measures that remove barriers to the delivery of environmental water to floodplains and wetlands
- $20.9 million over three years for councils to reduce the reliance on River Murray water by investing in alternative water resources and infrastructure
- $14 million in 2025–26 for the continued replenishment of sand at West Beach and other Adelaide coastal areas
- $7.6 million over four years from 2025–26 to support the volunteer wildlife rehabilitation sector, provide grants for veterinary support for injured wildlife and improve the health of South Australia’s biodiversity
- $5 million over four years to continue the delivery of the Great Artesian Basin Water Security Program, extending capping of uncontrolled bores and piping open bore drains to reduce water loss and recover groundwater pressure
- $3.3 million over three years will be spent modernising the planning, forecasting and delivery processes for environmental water across the Southern Connected Basin
- $2.4 million over four years for drainage and infrastructure upgrades in South Australia’s south-east, including critical safety interventions in the south-east drainage network
- $1.7 million over three years for the ongoing position of Commissioner for the River Murray, who will continue to fight for essential outcomes to protect the river
Energy
The 2025–26 budget also provides a path forward for the Whyalla steelworks, which is set to play a critical role in South Australia’s hydrogen future.
In partnership with the Federal Government, the South Australian Government is committing $2.4 billion from 2024–25 to secure the long-term future of the Whyalla steelworks and support the Whyalla community, with the state government contributing $650 million towards the support package.
A total of $1.2 billion is budgeted over six years from 2024–25. This includes a $384 million investment to fund the Whyalla steelworks’ operations during administration, for approximately six months. This funding is critical to ensuring workers and contractors will have ongoing work at the steelworks and will continue to be paid.
Acknowledging the likelihood of an extended sale process, the South Australian Government has provisioned a further $384 million in 2025–26 on the basis that the Federal Government will agree to continue to contribute on a 50:50 basis. To ensure the steelworks has a sustainable, long-term future, the budget also includes a $1.9 billion package to support a new owner to invest in the necessary upgrades and new infrastructure.
The Federal Government has earmarked up to $500 million of the Green Iron Investment Fund to support the longer-term transformation of the steelworks. It will also make available substantial additional financing to partner with a future owner and operator to upgrade the facility and ensure a green steel future for Whyalla and South Australia.
A joint taskforce will also be set up to provide advice and expertise in the transition to a sustainable future. The taskforce will engage with workers, the City of Whyalla, administrators and creditors to support a path forward.
The South Australian Government’s share will come from funding set aside for the Hydrogen Jobs Plan – with $593 million originally budgeted for a Whyalla hydrogen plant to be deferred to prioritise securing the steelworks – as well as $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund.
The 2025–26 budget also includes $12.1 million over four years for Whyalla transformation, turbine divestment and hydrogen industry development.
To navigate a rise in the price of diesel fuel required to provide energy services to remote communities and townships, The South Australian Government will also invest $1.6 million in 2024–25 to support the Remote Area Energy Supply scheme.
Electric buses
The South Australian Government has also committed $12.5 million over five years to transition the current Mount Barker On-Demand (Keoride) trial service into a permanent Adelaide Metro service. This includes the purchase of six new electric vehicle buses and associated infrastructure upgrades to the Mount Barker Depot to support electric vehicle charging.
Climate conference
The State Government is also investing $8.3 million for early works for COP31, with the Federal Government selecting Adelaide as the preferred city to host the event, should Australia’s national bid for the conference be successful.
The funding will support works including significant planning for security, transport and infrastructure.
In order to secure host status ahead of larger cities, the State Government commissioned a feasibility analysis that confirmed Adelaide has both the capacity and capability to host the event, expected to bring tens of thousands of business travellers to the city.
