Energy rebate ‘an interim measure’, PM says as extension decision looms
Anthony Albanese has commented on the future of a key measure sparing Australians from the worst of sky-high power prices.
Power bill rebates were always “an interim measure”, Anthony Albanese has said as his government weighs up extending or scrapping the federal help.
Sparing households and small businesses from the worst of climbing power prices, the blanket energy rebate is one of Labor’s most popular policies.
It is also a heavy burden on Commonwealth coffers at a time when shrinking iron ore and coal exports are forcing Canberra to scramble in search of new revenue streams.
The Prime Minister and his cabinet will next week decide whether to extend the energy rebate ahead of the Mid-Year Economic and Fiscal Outlook (MYEFO) due this month.
Mr Albanese on Sunday kept tight-lipped on the decision but did stress that the rebates were temporary.
“What we’ve said is this wouldn’t be in place forever,” he told the ABC.
“This was an interim measure.
“We’ll give consideration to that in the lead-up to MYEFO.
“And make an announcement before the end of the year. Once we make that decision.”
The Energy Bill Relief Fund initially provided a universal $300 household rebate for the 2024–25 financial year, paid in quarterly instalments.
Recognising ongoing pressures, the government added a $150 extension covering July to December 2025.
Supporters argue the rebates offer essential, direct cost-of-living relief and have successfully lowered headline inflation figures by mechanically reducing energy prices in the CPI basket.
However, economists and the opposition have criticised the scheme for being untargeted, noting that wealthy households received the same support as struggling ones.
Critics also warn that such cash injections can be inflationary, freeing up household income to be spent elsewhere and potentially counteracting the Reserve Bank’s efforts to cool demand.
The current $150 extension is set to end on December 31, 2025.
Like Mr Albanese, Treasurer Jim Chalmers has explicitly warned that the rebate cannot go on forever and is not a permanent budget feature.
Liberal frontbencher Alex Hawke said whether to dump the assistance was “a very difficult question”.
“Government has been pushing up the prices of power over a long time now,” he told Sky News.
“Energy is up 30 per cent for households, it’s up 40-70 per cent for some businesses.
“The number one reason the Labor government is bailing out so many heavy industry businesses is because their power costs are doubling or tripling when they go to sign new contracts.
“So the question we have to ask is, how long can the taxpayer pay for electricity bills when the government pressure is increasing the price of it?
“It’s unsustainable. Labor knows it’s unsustainable.”
However, Mr Hawke did not rule out supporting another limited extension.
“We might have to agree with the government to another round of energy related but that is not a solution to the power prices themselves going through the roof because the consumer is paying more and the government and the taxpayer, which means consumers ultimately are paying more as well,” he said.
“That isn’t a sustainable model.”
Originally published as Energy rebate ‘an interim measure’, PM says as extension decision looms
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