Power relief payment set for 3.9m Aussies

Almost four million Australians struggling with paying skyrocketing power bills will be given a cash handout in Tuesday’s Budget.

A quarter of Australia’s eligible voters can expect a one-off payment to help cover the cost of power bills in Tuesday’s federal Budget.

An Energy Assistance Payment — $75 for singles and $125 for couples — will be paid into the bank accounts of 3.9 million veterans, carers, single parents, aged pensioners and people receiving the disability support pension before July, News Corp reports.

Treasurer Josh Frydenberg said it would particularly support older people on the age pension.

He said the government understood cost-of-living pressures were a real challenge for many.

“This is why we have worked hard to deliver a strong economy and a balanced budget so we can deliver this assistance,” he told News Corp.

The measure, first put to Cabinet by then prime minister Malcolm Turnbull last August, will cost $285 million.

Treasurer Josh Frydenberg will hand down his first Budget on Tuesday. Picture: Kym Smith

Speaking on the Today show this morning, Mr Frydenberg said the payments recognised that Aussies were doing it tough.

“This is acknowledgment that there are cost-of-living pressures and this support is going to go to around four million Australian, pensioners, aged pensioners and those on the disability support pension, people who are on care payment, single parents payments and veteran payments,” he said.

When challenged on whether the government should instead be focused on lowering power prices, Mr Frydenberg said the two approaches were “not mutually exclusive”.

“This is money going to go into people’s pockets to help meet the cost of their next power bill. At the same time we are taking action to reduce energy prices,” he said.

“Last year, we saw prices come down in July. On 1 January we saw standing offers come down by around 15 per cent and then from 1 July we are putting in place a default price … We have seen prices come down as a result of the actions we have taken.

“We are underwriting new generation, we are building Snowy 2.0, we have more gas in the market and we have taken on the energy networks.”

Mr Frydenberg denied the payments were a “cash splash”.

“This is responsible targeted spending into key areas that lifts the productive capacity of the country,” he said.

“We are all about creating jobs and our record shows we have delivered on our commitment to create more than a million new jobs ahead of schedule.”