New power bill relief

Jim Chalmers MP, Treasurer 

Chris Bowen MP, Minister for Climate Change and Energy 

Sen Jenny McAllister, Assistant Minister for Climate Change and Energy 

The Albanese Labor Government will provide a $300 energy bill rebate to every household and additional energy bill relief to small businesses as part of the responsible cost of living help in the Budget.

Just like every taxpayer is getting a tax cut, every household will now get energy bill relief under the Albanese Government.

From 1 July 2024, all households will see a $300 credit automatically applied to their electricity bills and around one million small businesses will receive $325 off their bills over 2024–25. The credits will be applied in quarterly instalments. The Government is providing $3.5 billion for this relief, which extends and expands the energy bill relief rolled out to households and small businesses in 2023-24.

The primary focus of our economic plan and Budget is to ease pressure on Australians and put downward pressure on inflation, and our new power bill relief does both.

We know that many people are under pressure, and the extension and expansion of our energy rebates will deliver more cost-of-living help to more Australians.

Treasury estimates this will directly reduce headline inflation by around half of a percentage point in 2024–25 and is not expected to add to broader inflationary pressures.

Based on estimates of 2024-25 standing offers, the Commonwealth’s energy bill relief means that nationally household bills will be 17 per cent lower on average compared to the previous year. This cost of living relief builds on the Albanese Government’s Energy Bill Relief Fund announced in December 2022, which committed up to $1.5 billion in energy bill relief that shielded Australian families and businesses from global energy price shocks.

Compared to the Government’s 2022 Energy Bill Relief Fund, this new power bill relief doubles the number of eligible households from five million to more than 10 million.

As the Australian Bureau of Statistics has shown, our energy bill rebates have directly reduced inflation. In the year to the March quarter 2024, electricity prices rose two per cent, and would have risen 14.9 per cent without our energy bill rebates.

In addition to this new power bill relief, the 2024-25 Budget also delivers $68.4 million for energy reforms that put consumers first, including:

• $27.7 million towards reforms to help ensure consumer energy resources such as rooftop solar, household batteries and electric vehicles unlock further savings and benefits for all energy customers.
• $20.7 million to improve community engagement through a bolstered Australian Energy Infrastructure Commissioner and voluntary national developer standards for new infrastructure projects.
• $16.6 million to help ensure the Australian Energy Regulator decisions and spending on the clean energy transformation are in the best interests of consumers.
• $1.8 million to implement regulatory changes so consumers can switch to a better energy deal with just ‘one click.’ These changes will stop contracts automatically rolling over to higher-cost deals, ensure people receive the concessions and rebates they are entitled to, and reduce excess fees and charges.
• $1.6 million to review electricity market laws that regulate misconduct in electricity retail, contract and wholesale markets.

Helping to ease inflation and cost of living pressures are the top priorities of the Albanese Government and the Budget, and that’s what our energy rebates are all about.