2025-26 SA Budget commits $27.3bn to deliver major infrastructure projects

The South Australian Government has handed down its 2025-26 State Budget, which highlights a record investment of $27.3 billion over four years to deliver major infrastructure projects. 

Some of the priority projects will be delivered in partnership with the Australian Government, including the two largest projects for the future. 

North-South Corridor 

$15.4 billion has been allocated to the non-stop North-South Corridor, jointly funded by the Albanese and Malinauskas Governments. This project is the biggest infrastructure development in the State, and main construction works are already underway. 

Once completed, the South Road will enable motorists to bypass 21 sets of traffic lights between the River Torrens and Darlington, saving approximately 40 minutes of travel time during peak periods. 

New Women’s and Children’s Hospital 

The $3.2 billion New Women’s and Children’s Hospital will deliver more beds as well as improved facilities such as theatres and greater emergency capacity, with the ability to expand in the future if needed. 

Once this new healthcare facility is completed, it will provide capacity for 414 overnight beds – which is 56 more than the current capacity – alongside an onsite helipad. 

“Significant growth requires investment, and the State Government has made record commitments to help our state grow. 

“In partnership with the Commonwealth Government, we are building the roads, hospitals and critical infrastructure to support a larger population. 

“These major transport infrastructure projects in the city and across our state will make our roads safer and the commuter faster, helping improve the livability of our state and increase productivity. 

“The State Government has made significant commitments to building a bigger and better health system with new and improved hospitals and ambulance headquarters. Improving the road infrastructure will divert more trucks away from metropolitan Adelaide and improve freight efficiency,” Treasurer Stephen Mullighan said. 

The Budget will also allocate funding for new major infrastructure projects, including: 

• $656.3 million for High Productivity Vehicle Network – Stage 1 over 10 years to deliver upgrades between the South Eastern Freeway and the Sturt Highway. Funding for this project is jointly committed on an 80:20 basis with the Australian Government 

• $250 million for the Curtis Road Level Crossing Removal – this project is jointly funded with the Australian Government, and it will reduce congestion along the major east-west connection in the northern suburbs. To be delivered over five years, the removal of the level crossing will support significant housing growth in the northern suburbs 

• $80 million for Main South Road Safety Upgrade between Myponga and Yankalilla – this project will include new overtaking lanes as well as targeted road and bridge widening for a notorious stretch of road on the Fleurieu Peninsula. This five-year project will be jointly funded with the Commonwealth Government 

• $15 million for the Port Augusta Wharf upgrade – funded 80:20 with the Australian Government, this project will allow public access and amenity for recreation purposes at the port. The upgrade will include new decking, girders, cross heads, cross bracing and steel piles 

• $12.5 million to transition the Mount Barker on Demand Keoride trial to a permanent service – this will provide a comprehensive transport solution for the growing Adelaide Hills community. Fully funded by the South Australian Government, the project includes the purchase of six new electric vehicle buses and associated infrastructure upgrades at the Mount Barker depot 

The 2025-26 State Budget will also provide funding for a number of major projects due for completion over the forward estimates: 

• $601 million Princes Highway Corridor 

• $495.9 million Flinders Medical Centre Upgrade and Expansion 

• $400 million Marion Road Upgrade – from Anzac Highway to Cross Road 

• $365.6 million New Mount Barker Hospital 

• $350 million South Eastern Freeway Upgrade 

• $330 million Eyre Peninsula Desalination Plant 

• $185.9 million New Technical Colleges 

• $133.8 million New Ambulance Headquarters 

“SA is building, and the 2025-26 State Budget reflects that – with $27.3 billion over four years for infrastructure works. 

“We are investing in a range of significant projects in partnership with the Albanese Government, with major construction work recently kicking off on a non-stop South Road and our joint $250 million funding commitment to build an overpass where Curtis Road meets the Gawler rail line, removing the frustrating level crossing. 

“We have the necessary planning work on a properly configured Greater Adelaide Freight Bypass, but we have always maintained that this nationally-significant project should be funded on an 80:20 basis with the Commonwealth. We will continue discussions with the Federal Government on that basis,” Minister for Infrastructure and Transport Tom Koutsantonis said. 

Source: Government of South Australia – Media Releases; Infrastructure Magazine; Government of South Australia – State Budget 2025-26