Federal Government announces $625 million in roads funding for South Australia

The Federal Government has announced a $625 million funding package to upgrade South Australian roads ahead of tomorrow's Federal Budget.

The projects include a $200 million roads redevelopment for the Adelaide Hills township of Hahndorf.

There is also $136 million for the next stage of the Main South Road duplication between Aldinga and Sellicks Beach and $100 million for upgrades to the Strzelecki Track.

It remains unclear when the projects will be delivered, although the Government described them as "shovel-ready".

Prime Minister Scott Morrison said the package would help South Australia's recovery from the economic effects of COVID-19.

But the State Opposition argued it did not go far enough and accused the Government of "re-announcing old money".

Package to create 2,600 jobs: Morrison

Mr Morrison said the package was expected to create 2,600 direct and indirect jobs.

"We have been working closely with state and territory governments to invest in the infrastructure that is ready to go and can help rebuild our economy and create more jobs," the Prime Minister said.

SA Infrastructure Minister Cory Wingard said the funding boost would create jobs across the state.

"Look, everyone would always like more money [but] this is a really great win for South Australia — there are lots of jobs in the process of rolling out and we have lots of jobs as we speak."

Package 're-announces old projects'

But Deputy Labor Leader Susan Close said not enough of the projects are actually new.

"We need to be holding Canberra to account, rather than getting excited about re-announcing old money, we need new money, and for it to be spent now."

Speaking with the ABC yesterday, Treasurer Josh Frydenberg said he had no option but to spend big to help the national economy recover from COVID-19.

He said there are "major challenges" facing the economy and that it requires massive support.

He will deliver the Budget on Tuesday evening.