Treasurer Jim Chalmers has pledged help is on the way for energy bills

Ahead of the March 25 budget that will be handed down next Tuesday, Mr Chalmers has vowed to find a way to deliver cost-of-living relief without putting pressure on inflation.

Treasurer Jim Chalmers has pledged to “do it again” when it comes to cost-of-living relief in the budget, confirming that help for rising energy bills is on the way.

Ahead of the March 25 budget that will be handed down next Tuesday, Mr Chalmers has vowed to find a way to deliver cost-of-living relief without putting pressure on inflation.

But the energy rebate move, which is expected to be unveiled just days before the Prime Minister calls an election for May 3, is set to spark a major political showdown with Liberal leader Peter Dutton.

Speaking on the ABC’s 7:30 program, host Sarah Ferguson asked if the inflationary impact of cost-of-living relief could stifle the likelihood of further interest rate cuts.

But Mr Chalmers said the entire point of offering a rebate for rising energy prices was that rather than simply pumping more money into the economy with cash handouts it was providing relief without driving up inflation

The Australian Federal Treasurer Dr Jim Chalmers MP during his pre-budget address in Brisbane. Picture: NewsWire/Tertius Pickard

“What we’ve been careful to do in our first three budgets and we’ll be careful again in the fourth one, is to provide cost-of-living help in the most responsible way we can,’’ he said.

“One of the reasons we’ve been able to get the Budget in much better nick at the same time as we provide cost-of-living relief over the last couple of years is we’ve worked out the most responsible way to go about it and we’ll do that again.”

Amid predictions of big energy prices in some parts of Australia from July, host Sarah Ferguson asked, “You’re going to have to find room for a new round of subsidies to deal with those, aren’t you?”

“There’ll be cost-of-living help,’’ Mr Chalmers replied.

“I won’t detail the nature of the program tonight. I’m hoping you’ll have me back on Budget night and we can talk about these things in a week’s time.

“Cost-of-living help will be meaningful but responsible. People are still doing it tough and that’s why there will be cost-of-living relief in our fourth Budget just like in the first three, but it will be really responsible once again.”

Treasurer Jim Chalmers has pledged to "do it again" when it comes to cost of living relief in the budget confirming that relief for rising energy bills is on the way. Picture: Getty

Given that the Liberal leader Peter Dutton has raised concerns about the impact of energy rebates on inflation, the Treasurer said he did not expect bipartisan support.

“I wouldn’t have thought so but it remains to be seen,’’ he said.

“One of the most surprising and disappointing elements of this parliament has been whenever we’ve tried to help people with cost-of-living the Coalition has opposed that.

“They didn’t want a tax cut to every taxpayer, energy bill relief, cheaper medicines, rent assistance, cheaper early childhood education, fee-free TAFE, wages moving again.

“It beggars belief that Peter Dutton opposed all of that and that means people would be thousands of dollars worse off today if he had his way and would be worse off still if he wins the election.”

“Let’s see what happens. We’ll announce our cost-of-living relief in the Budget. That won’t be the only element of the Budget. A big part will be about making our country and economy more resilient to global economic uncertainty but we would obviously ask the Opposition to do away with this habit they’ve formed of opposing all of our cost-of-living help.”

Peter Dutton’s warning

Accusing the government of “chasing its tail”, the Liberal leader has warned more handouts may not prove to be the answer.

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.

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

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

PM hints at an extension of the energy rebate

Speaking in Perth last week, the Prime Minister did not rule out extending the $300 energy rebates in the federal budget.

“Well, I’m determined to provide cost of living relief wherever we can,’’ Mr Albanese said.

“We’ve provided two lots of cost of living relief. We have also, of course, put a cap on gas and coal prices. All of those measures have been opposed by the Coalition.

Prime Minister Anthony Albanese met with staff during a visit to a Medicare urgent care clinic in Longman. Picture: NewsWire/Tertius Pickard

“We understand that people are doing it tough, and that’s why we’ve provided cost of living measures. Every single one of those cost of living measures has been opposed by Peter Dutton and the Coalition.”

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 failure to deliver on that promise was front-and-centre as Mr Dutton faced the cameras on Thursday.

“Because of Anthony Albanese’s energy policy, your electricity bill is going to go up by nine per cent – that’s another nine per cent, that’s not a $275 cut, which is what the Prime Minister promised you before the last election,’’ Mr Dutton said.

“It’s now a $1300 increase in your electricity bill – and it’s not just your electricity bill that’s gone up under this Government, it’s also the cost of groceries,’’ Mr Dutton said.

“When your power bill has gone up by $1300 a year in your household, don’t forget that the local butchers, or the local IGA, or the local fruit shop where they spend a lot of money on cold storage and electricity otherwise, for cabinets and fridges, they’re pushing up the price of groceries as well.

“We were in a supermarket the other day – a small family business, their electricity bill is going up by $40,000 a month, $480,000 a year, which is why you’re paying more under this Government for every item that you put into your trolley when you go into a Coles, or IGA, or Woolworths.

“I believe that there is a much better way, a much better path for our country. We have to have a balanced and sensible energy system and if we do that we can bring downward pressure on energy prices.”

Originally published as Treasurer Jim Chalmers has pledged help is on the way for energy bills