SA govt cancels projects after levy defeat

The South Australian government faces a $120 million budget black hole after its proposed car park levy was blocked in parliament.

Family First and independent crossbenchers supported an amendment by the Liberal opposition in the upper house on Wednesday to remove the tax from the budget.

The proposed $750-per-year levy on selected car park spaces in Adelaide's central business district would have raised $120 million over four years.

A number of promised public transport projects, including a park-and-ride facility in Adelaide's north, will be axed as a result of the levy's defeat.

Opposition leader Steven Marshall says the government is making excuses for no longer proceeding with the projects.

"This is just another shameful broken promise in terms of public transport, perpetrated by this hopeless, 12-year-old, tired government," he told ABC radio on Thursday.

"It's not the first time they've announced something before an election, only to backflip with any excuse immediately thereafter."

Treasurer Tom Koutsantonis said it was the height of hypocrisy for Liberal MPs to champion infrastructure projects and then vote against the revenue measures that would fund those projects.