Premier’s huge pre-election power pledge to slash $1000 off bills

High-income earners unaffected by cost of living crisis will be handed $1000 from the state government in a pre-election energy subsidy that’s been slammed as “irresponsible and desperate”.

High-income earners unaffected by cost of living will be handed $1000 from the state government in a pre-election spending spree Treasurer Cameron Dick insists is not aimed at buying votes.

Under the plan, Mr Dick will double the power bill rebate to $1000, meaning most Queenslanders won’t pay anything for power in the July quarter, but it’s a move slammed by one economist as “grossly irresponsible”.

The $2.5bn rebate policy is aimed at reducing cost of living pressures, but will not be means tested – prompting questions to Mr Dick on Thursday about giving taxpayer cash to high-income earners on the eve of the October state election.

Mr Dick repeatedly defended the policy, sensationally declaring wealthy Queenslanders “deserve assistance” as well.

“It doesn’t matter the demographic, doesn’t matter the age, doesn’t matter the geography, doesn’t matter where you live or who you are, what your job is – everyone’s feeling cost of living pressures,” he said.

“This is a responsible thing for government to do.”

Queensland’s coffers face a $2.5bn hit through Premier Steven Miles’s move to double the electricity bill rebate – which will be funded by coal royalties.

Deputy Premier and Treasurer Cameron Dick: Dan Peled / NCA NewsWire

“I said we would use the budget to deliver cost-of-living relief, but I’ve decided it’s too urgent to wait that long,” Mr Miles said.

“We are delivering the biggest cost-of-living relief package in Queensland history to back Queenslanders in the fight against inflation.

“The budget will include $1000 off every Queensland household’s power bill – the biggest direct energy rebate to Queensland households ever.”

Economist Gene Tunny, of Queensland’s Adept Economics, slammed the new energy subsidy as a “grossly irresponsible and desperate vote-buying exercise” which the government “simply cannot afford”.

“Taxpayers will bear the brunt of this cash splash for years, if not decades, to come,” he said.

“The ongoing interest bill on the additional $2.5bn of debt the government will incur, at 4 to 5 per cent government borrowing rates, translates to an ongoing annual cost to the budget of $100 to $125m.”

Treasurer Cameron Dick affirmed the $2.5bn energy subsidy package would be paid for by coal royalties.

Two weeks ago Mr Dick revealed total government debt was due to hit $188bn by 2027/2028 according to preliminary Treasury forecasts.

He said the state budget would therefore be “difficult” and that the election could not be a “unsustainable spending spree”.

Mr Miles said the rebates would be applied to bills in the first quarter of the 2024-25 financial year.

The premier, facing sliding polling and acknowledging Labor was “very likely” to lose the October election, has attempted to promote the government’s efforts on cost of living.

He used March’s cost-of-living forum, hosted by The Courier-Mail and Queensland Council of Social Service, to promise the biggest cost-of-living budget ever.

Mr Crisafulli in March pledged to continue the electricity rebate program if the LNP was elected in October.

The premier also launched an inquiry into the supermarkets, which LNP cost-of-living spokeswoman Deb Frecklington criticised as being too narrow in its scope.

“There’s no question the big supermarkets should be held to account but so too should the government that is influencing costs like electricity, transport, insurance and water,” she said.

Under the rebate to be announced on Thursday, seniors, pensioners and concession card holders will receive $1372 off their power bills and small businesses will continue to get $325 off power bills.

A special appropriation Bill will be introduced to bring forward the payment.

Treasurer Cameron Dick said the investment was funded after the government collected a “fair share” of coal royalties.

“That’s the biggest ever rebate offered by any government in Australia’s history and is expected to save Queenslanders more than $2.5bn,” Mr Dick said.

Originally published as Premier’s huge pre-election power pledge to slash $1000 off bills