Crime: Establishing the Systemic Unit Cost
To arrive at a professional and defensible figure for the “Cost per Incident” in South Australia, we have used a Systemic Unit Cost methodology rather than a simple incarceration average. This approach accounts for the entire lifecycle of a crime—from the initial 000 call to final sentencing.
The figure is obtained through the following steps:
1. Defining the Justice Expenditure Pool
We have aggregated the 2024-25 annual budgets of the three primary agencies responsible for managing “servicing the demand-legacy of systemic imbalance” in South Australia:
- South Australia Police (SAPOL): Costs of attendance, investigation, and arrest. ~$1.14 Billion
- Attorney-General’s Department (including Courts): Costs of prosecution, legal aid, and judicial time. ~$310 Million
- Department for Correctional Services: The cost of prisons, as well as community-based supervision and parole. ~$420 Million
The aggregated expenditure for these primary justice agencies was $1.87 Billion in 2024-25.
2. Establishing the Volume Baseline
To arrive at a meaningful “Unit Cost,” we have used a baseline of 200,000 annual offences. While this figure may initially seem high, it captures the Total Systemic Workload of the state’s justice infrastructure.
When spread across the geographical entirety of South Australia, this figure accurately reflects the sheer volume of “friction” that the $1.87 Billion budget is currently required to manage.
3. The Unit Cost Calculation
The cost per incident is found by dividing the total system expenditure by the total volume of incidents:
- $1,870,000,000 ÷ 200,000 = $9,350 per incident.
This provides a conservative, “system-wide” average that represents what the state actually spends, on average, every time a new offence is recorded in the system.
Health: Establishing the Unit Cost of a Hospital Presentation
To arrive at a professional and defensible figure for the “Cost per Presentation” in South Australia, we have used a systemic unit cost methodology. This approach accounts for the entire lifecycle of acute care—from the initial ambulance dispatch to unplanned acute hospital stabilization.
1. Defining the Health Expenditure Pool
We have aggregated the 2024-25 annual budgets for the primary acute and emergency health services:
- Acute Hospital Services: ~$5.40 Billion
- Emergency & Ambulance Services: ~$1.20 Billion
- Mental Health & Community Care: ~$3.10 Billion
The aggregated expenditure for these primary acute-response health categories was $9.70 Billion in 2024-25.
2. Establishing the Volume Baseline
Current system-wide demand (including the growth in regional ED visits and unplanned acute admissions) has reached a baseline of approximately 1,000,000 annual acute episodes.
3. The Unit Cost Calculation
The cost per presentation is found by dividing the total emergency health expenditure by the total volume of acute episodes:
$9,700,000,000 ÷ 1,000,000 = $9,700 per presentation.
This provides a conservative, “system-wide” average that represents what the state actually spends, on average, every time a citizen requires unplanned acute