Treasurer Jim Chalmers insists power belief relief is not an ‘election bribe’

The government has found money in its budget to lock in an energy bill subsidy until the end of the year, but the Treasurer insists it’s not an ‘election bribe’.

Energy bill rebates will be extended through 2025, but Treasurer Jim Chalmers insists the fresh support payment is not an “election bribe”.

Appearing on Sky News with Andrew Clennell on Sunday morning, Mr Chalmers spruiked the budget sweetener, which will wipe $150 from every household’s power bill, but rejected the claim it was an election cash splash.

“I don’t think so,” he said.

“I mean, this is the third time that we’ve done the energy bill rebates.

“It’s about recognising that even with all this progress on inflation, we’ve got inflation from higher than 6 per cent and rising when we came to office.

“Now 2.4 per cent. We know that people are still under the pump, and so we’re doing what we responsibly can to help people with the cost of living.”

A federal election is imminent and must take place before May 17.

Anthony Albanese has extended the energy rebate for another two quarters. Picture: NewsWire / Damian Shaw

On Sunday, Prime Minister Anthony Albanese confirmed this week’s budget would include $1.8bn so every house and small business receives a $150 rebate.

The previous $300 rebate ($75 quarterly) was set to end in the middle of this year.

But now two more rebates of $75 will be wiped from bills to the end of this year.

“I look forward to Tuesday night’s budget being an important element in providing cost-of-living relief,” Prime Minister Anthony Albanese said Sunday.

“We have worked very hard through the Expenditure Review Committee to make sure that we get the decisions right and I’m confident that it will be well received.”

Asked why the full $300 rebate was not replicated this time around, the Prime Minister said “We wanted to make sure that this energy bill relief was extended through this calendar year”.

In 2024, power prices fell 25.2 per cent, the Prime Minister said, which would have been just a 1.6 per cent reduction without rebates.

“So this is energy bill relief, cost-of-living support, that will also have an effect of putting downward pressure on inflation,” Mr Albanese said.

From July 1, every household and around one million eligible small businesses will automatically get an extension of the energy bill rebate.

Power prices came down in 2024 because of federal and state rebates. Picture: NewsWire / Gaye Gerard

The Prime Minister said the extension would apply in quarterly instalments.

The initial plan announced by the Albanese government saw 10 million households gain a $300 credit on their energy bill in four quarterly instalments.

The overall package in its original form cost the budget $3.5bn.

Mr Albanese has announced the package ahead of the upcoming federal budget due to be released on March 25.

Figures released by the Australian Bureau of Statistics showed the initial energy rebate saw power bills fall by 25.2 per cent in 2024, as both states and federal governments applied rebates to electricity prices.

Mr Albanese said the extension of the energy bill rebates will cost $1.8bn over the forward estimates period and would directly reduce headline inflation by around half a percentage point in 2025.

Mr Albanese said his government will continue to help with cost-of-living. Picture: NewsWire/ Gaye Gerard

Finance Minister Jane Hume said the Coalition would not oppose the rebate extension, but argued the policy would not address the structural shortages affecting Australia’s energy grid.

“We will not stand in the way of those Australians getting the relief that they need but the most important thing is an energy policy that fixes the broken system,” she told Sky on Sunday.

A returned Coalition government has said they will use nuclear to firm the grid by promising to build seven reactors by 2050, and fast-track gas approvals in the interim.

Although Labor will also source electricity from gas, it will rely on renewable energy from solar, wind and batteries.

“We will fast track approvals for new gas explorations … and in the long term, as those coal-fire power stations retire, we will replace them with zero emissions nuclear power, which has brought power prices down and stabilised the grids right around the world,” she said.

“That is the way to sustainably bring prices down. We can’t simply keep providing these band aids on bullet holes over a failed energy system.”

Shadow Treasurer Angus Taylor and Nationals Leader David Littleproud also said the Coalition would support the rebates, however Mr Littleproud was the most pointed in his comments.

“Well, we’ll have to back this, otherwise there’ll be Australian families that go broke,” he said.

“This government promised a reduction in your energy of $275, yet they’ve gone up by over $1,000 and they’ve spent over six and a half billion dollars in trying to give you that.”

Energy prices will form a key battleground in the upcoming federal election. Picture: NewsWire/Nadir Kinani

In addition, the government said the ACCC’s inquiry into the National Energy Market will be extended for 12-months, to help households and small businesses get a fair deal from their energy provider.

Mr Albanese says providing immediate bill relief while continuing to reform the energy grid was part of the government’s economic plan.

“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,” Mr Albanese said.

The extension of the energy bill relief comes as millions of households face higher electricity bills.

The Australian Energy Regulator has released its latest default market offer (DMO) draft determination, which is the maximum households living in NSW, South Australia and South East Queensland will be paying.

Under the draft, 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.

The Essential Services Commission also handed down its draft decision on its recommended increase to the Victorian default offer (VDO) on Thursday.

Mr Dutton said power bills are currently “too high”. Picture: NewsWire / Nikki Short

The commission recommended average annual electricity costs rise from $1655 to $1667, or by 0.72 per cent, for customers with a yearly usage of 4000kWh, the average across the state

Following the announcement from the regulators opposition leader Peter Dutton said energy bills are “too high” due to the Labor government’s energy policy.

“Chris Bowen has been a disaster,” Dutton said. “There should be a price to pay for that. Frankly today, if the prime minister doesn’t sack Chris Bowen, I don’t know when he would sack him, because he deserves to lose his job over forcing up the electricity prices of Australians yet again.”

At the time Mr Dutton did not say if he would extend the energy rebate.

Originally published as Treasurer Jim Chalmers insists power belief relief is not an ‘election bribe’