Federal Treasurer Jim Chalmers has announced the initiative that enables Australian households and small businesses to receive a quarterly $75 rebate on their energy bills will conclude at the end of 2025.
The Energy Bill Relief Fund (EBRF), which has been in place in various forms since the 2023–24 financial year (FY24), has received both praise and scorn from markets, with the immediate injection of cost-of-living benefits conflicted by views it has been a bandaid solution for a larger inflationary issue.
The reason it has been scrapped comes down, in part, to the growing pressures on Australia’s finances, where the potential of 2026 rate hikes come into view, while Chalmers said the Federal Government is also finding other ways to support cost-of-living relief.
“This marks a shift in the way that we are delivering cost-of-living relief,” he said. “This is a shift from temporary measures, first decided when inflation was almost 8 per cent, a shift towards ongoing cost-of-living help.”
Ongoing cost-of-living support, Chalmers said, can be found through changes to the tax system, Medicare and the Pharmaceutical Benefits Scheme, to deliver more permanent relief.
Tax cuts were actioned from the start of FY25, with the annual tax rate dropping year-on-year. Those earning up to $45,000 per year received a three per cent tax cut to 16 per cent in the first year. This is set to drop to 14 per cent from FY28.
Real solutions
Experts believe some of the most effective ways to bring bill relief is through intrinsic efficiency changes to households.
Grattan Institute energy and climate change program director Alison Reeve said government efforts should incentive higher-efficiency home installations of appliances and insulation.
This will ensure that “even when prices are high, overall bills will be lower”, she told the ABC.
Ahead of the summer months, consumers can save on power but implementing various measures such as keeping air conditioning systems at between 24 and 25°C, using blinds and window shades to insulate from the heat, blocking draughts and cracks with seals, and using the dishwasher and washing machine during cooler periods.
In fact, as reported by SBS, consumers can save 10 per cent on their power bill every time they choose a higher degree on their air conditioning system, so by keeping your temperature between 24 and 25°C, you could save up to 70 per cent from an 18°C setting.
Home owners can get rebates of about $140 on Residential Efficiency Scorecards completed on their homes, which typically cost between $250 and $500. Learn more on this here.
Treasury is expected to scrap the EBRF as part of its mid-year budget update to be released next week.
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