Prime Minister Anthony Albanese will spend $1.8 billion in Tuesday’s budget to extend the energy bill rebate for 10 million homes and about 1 million small businesses in a bid to bolster his cost-of-living credentials before the federal election.

The one-year $300 rebate announced in last year’s budget was set to expire on June 30 but will be extended to the end of this year, adding $150 in support, or $75 a quarter, for every home in the country.