Australians to Get New $150 Energy Rebate from July 1 – Part of $1.8B Budget Relief!

The Australian government has just made a significant announcement in its federal budget, including a new $1.8 billion scheme for relief from energy bills. Through this scheme, Australian families and small businesses will receive an extra $150 energy subsidy, giving some respite from the cost of living.

Key Points of Energy Relief Scheme

Prime Minister Anthony Albanese confirmed under this budget plan that the government would offer extra relief to reduce energy costs. Earlier under the existing scheme, a $75 rebate was provided each quarter, which was to lapse in April 2024. But through the new scheme, the subsidy will now be extended for two additional quarters, making the total subsidy $150.

Quarterly Subsidy Extension

Under this plan from July 1, all households and small businesses will get two $75 payments in July and October. The Government claims the action will alleviate inflationary pressures and assist with managing energy prices.

Prime Minister Albanese stated,
“This is another relief program provided to Australians by my Government, as part of our attempt to manage the increasing cost of living and reduce inflation.”

Inflation and the Labor Party’s election promise

Before the 2022 federal election, the Labor Party had vowed to lower electricity bills by as much as $275 a year. The Prime Minister, however, noted that without the subsidy, electricity bills would have fallen by only 1.6%.

Based on statistics provided by the Australian Bureau of Statistics, the scheme made electricity prices fall by 25.2% in 2024, with the federal and state governments cooperating to make energy prices fall.

Albanese added,
“If this subsidy did not exist, energy bills would have fallen by only 1.6%. But because of our government’s action, consumers have received more relief.”

Economic impact

This energy bill relief plan is one component of the overall living support program of the government, which targets to decrease the increasing cost of basic services as well as the inflation.

Public opinion: Support or oppose the relief scheme?

In a survey recently conducted by Canstar Blue, 54% of Australian citizens were not ready for how much more their electricity bill might go up if the subsidy of the federal government were cut off.

Besides, over 80% of the citizens approved of continuing with this subsidy, and 34% thought this scheme should be made need-based, such that only poor families receive this relief.

Opposition’s response

Liberal Party Opposition leader Peter Dutton had previously criticized the plan, but the Coalition has now confirmed that they will not block the relief plan.

Shadow Finance Minister Jane Hume stated,
“While we criticize the Labor Government for raising electricity and gas prices, we will not oppose this relief package because it is needed by Australian families.”

The Opposition has also assured that if they are in power, they will implement nuclear energy in Australia. In their plan, seven nuclear reactors will be installed by 2050 and gas power projects will be approved more quickly temporarily.

Potential rise in energy costs

The Australian Energy Regulator (AER) has just released a draft of its Default Market Offer (DMO), outlining what the highest energy prices will be for New South Wales, South Australia and South East Queensland.

On the basis of this report, electricity prices may increase by up to 8.9% in certain regions.

Effect on small businesses

Small business electricity rates will also likely rise, ranging from 4.2% to 8.2%, depending on location.

The Victorian Energy Commission (Essential Services Commission) has also published a draft of its Victoria Default Offer (VDO), projecting an average 0.72% rise.

Region	Potential price increase (%)	Average annual bill (4000kWh)
New South Wales, South Australia, South East Queensland	2.5 – 8.9%	Varies by area
Victoria	0.72%	$1667

Conclusion

This energy relief initiative introduced as part of the federal budget will go a long way in supporting Australian citizens and small businesses. Though this relief comes in the form of just two extra $75 quarterly payments, the soaring energy costs and the political tug-of-war about government policies have increased the intricacies of this subject.

This government initiative is a step in the right direction towards curbing inflation and offering monetary relief to the people, but future policy reforms might be needed because of the likely hike in the price of electricity.

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