Government announces $150 energy relief to Australians

Australians will be offered some cost of living relief in a pre-election sweetener.

Energy rebates worth $150 that are designed to reduce the impact of expected price hikes will be extended for every Australian for another six months in a pre-election sweetener.

Despite widespread criticism that the Prime Minister failed to deliver on his pledge before the last election that he would bring down the price of power by $275, the government is saddling up to offer more rebates.

However, the new rebates are only for six months, delivering two more $75 hits of relief each quarter until the end of the year.

The previous rebates were worth $300. The Australian government announced the initial $300 energy rebate for all households and a $325 rebate for eligible small businesses, starting July 1, 2024.

Those rebates were designed to expire in July, 2025 but will now be extended until the end of the year.

The new rebate will be offered at a reduced rate of $150 – covering off for many families on expected price hikes.

“We are going to take a further $150 right off your power bill because helping your family budget is our number one priority,’’ Prime Minister Anthony Albanese told news.com.au.

“This is another cost of living relief measure that my Government is delivering for Australians while putting downward pressure on inflation.

The Prime Minister, Anthony Albanese, visiting Rochedale Village Doctors, Brisbane QLD – on Wednesday 19th March 2025 – Photo Steve Pohlner

“Peter Dutton opposed the $300 energy bill relief to households. His only plan for energy is a $600 billion nuclear scheme that he will cut Medicare to pay for.”

Taxpayers will foot the bill for extension of energy bill rebates that will cost $1.8 billion over the forward estimates – the next four years.

The new $150 rebate is not a cash payment but instead provides a credit on electricity bills with eligible households receiving four quarterly instalments starting in July, 2025.

All Australian households who receive an electricity bill and are connected to the grid, including those in external and non-self-governing territories, are eligible.

The rebate is automatically applied to electricity bills by energy retailers, meaning consumers won’t need to apply or take any action.

Aussies facing ‘sucker punch’

Hundreds of thousands of householders facing power bill price hikes of up to $200 a year according to the energy regulator.

According to an analysis by Canstar Blue, Aussie households are tipped to pay $200 more for their electricity bills starting from July 1.

Canstar data insights director Sally Tindall called it a “sucker punch” and unwelcome news during a cost of living crisis.

“Electricity price rises impact pretty much everyone, but they hurt those on lower incomes the most as these households are shelling out more of their income to keep the lights on,” she said.

AUSTRALIA – NewsWire Photos – General view editorial generic stock photo image of Australian cash money currency. Picture: NewsWire / Nicholas Eagar

The warning followed The Australian Energy Regulator (AER) revealing households’ power bills could rise between 2.5 and 8.9 percent depending on where a person lives.

Small business customers could see rises between 4.2 and 8.2 per cent.

In a statement, Treasurer Jim Chalmers said that Treasury estimates this will directly reduce headline inflation by around half of a percentage point in 2025, and reduce household bills by 7.5 percent on average nationally, compared to bills without the extension.

The Albanese Government said the energy bill rebates have directly reduced electricity prices. In 2024, electricity prices fell 25.2 per cent, but would have fallen just 1.6 per cent without energy rebates.

“We are providing immediate relief on energy bills now while we continue to progress the overdue reform needed to deliver the modern, affordable and reliable energy grid Australians deserve,’’ he said.

“Our economic plan is all about finishing the fight against inflation, providing responsible cost of living relief and building a stronger and more productive economy.

Labor’s failed $275 promise

Ahead of the 2022 federal election, Labor promised to implement an energy plan that could cut energy bills by $275 a year by 2025.

The Albanese Government has blamed unexpected world events including the Russian-Ukraine war for prices rising so much that the rebate did not reduce prices as much as expected.

Asked if Labor’s energy minister regrets that promise on Sunrise last week, Labor frontbencher Jason Clare blamed Russia.

“Well, you know, that promise was made before we saw Vladimir Putin invade Ukraine and we saw prices go up as a result of that,’’ he said.

Shadow Minister for Climate Change and Energy, Ted O’Brien MP has previously criticised Labor’s fatal energy price promise.

“Despite promising a $275 reduction in household electricity bills, Australians are paying some of the most expensive power bills in the world and there is no reprieve in sight.”

“Labor’s energy crisis has pushed many Australians to the brink with 550 households plunging into hardship arrangements due to their energy bills every single week under the Albanese Government.”

“This is a direct consequence of Labor’s ideological, all-eggs-in-one-basket ‘renewables only’ approach which is ripping out 90% of Australia’s reliable 24/7 baseload energy over the next decade without a replacement.”

Originally published as Government announces $150 energy relief to Australians