Many households have benefited from financial relief to help with rising energy costs. As the program comes to an end, the final round of payments is set to be distributed soon. This marks the conclusion of a broader effort to ease cost-of-living pressures for eligible recipients. With this support winding down, many are now wondering what’s next for energy affordability.
Here’s everything you need to know about the final payment and what options may be available in the future.
As April dawns, Australians are bracing for the final installment of the government’s $300 electricity rebate, a financial relief measure that has been helping to ease the burden of energy costs. From 1 April, the last $75 payment will be credited to the majority of Australian households, marking the end of a program that has provided much-needed support amidst rising living expenses.
Meanwhile, residents of Western Australia and those on embedded networks have already received the full rebate.
The end of the rebate comes at a time when energy bills are expected to climb. According to new research from Canstar Blue, a staggering 54 per cent of Australians feel unprepared for the anticipated increase in their energy bills once the federal rebate concludes.
The Australian Energy Regulator is set to release its draft default prices, which could signal a rise in benchmark electricity rates in the months ahead.
Sally Tindall, Canstar data and insights director, acknowledges that the temporary rebate has been instrumental in keeping energy bills in check since its introduction last year. However, she warns that ‘the clock is now winding down,’ and households must brace themselves for the financial impact that will follow.
This relief, which is about to end soon, came as a response to the global energy crisis exacerbated by Russia’s invasion of Ukraine, which Treasurer Jim Chalmers described as the ‘biggest shock to global energy prices since the 1970s.’ The government’s intervention has been credited with keeping electricity price increases to an average of 2 per cent over 2023, rather than the projected 15 per cent rise.
From 1 July 2024, more than 10 million households benefited from the $300 rebate, while small businesses experienced a slightly higher $325 discount on their energy bills. This relief was directly to bills, meaning eligible recipients didn’t receive cash but instead enjoyed a reduction in their energy costs.
The rebate was not only a welcome relief for many but also a strategic move to lower headline inflation by about half a per cent in the 2024-2025 financial year, without adding to inflationary pressures.
Now that the rebate is about to reach its conclusion, it has been met with concern from the public. Canstar Blue’s findings reveal that over 80 per cent of Australians would find it favourable if the federal energy rebate is extended. Of these, 34 per cent advocate for its continuation with the addition of a means test.
It’s worth noting that electricity costs have seen a significant decrease, with a 9.9 per cent drop in the December quarter and a 25.2 per cent reduction year on year. The Australian Bureau of Statistics has indicated that without the rebates, prices would have seen a 0.2 per cent increase in the quarter.
However, all is not lost. There are proactive steps you can take to mitigate the sting of rising energy costs. Switching electricity providers is a straightforward strategy to bring some relief to your budget. Canstar Blue’s research suggests that a Sydney-based household could save up to $386 annually by moving from an average-priced plan to one of the cheapest available. Similarly, households in Melbourne and Brisbane could pocket savings of $319 and $445, respectively.
But why stop at electricity? Tindall encourages consumers to scrutinise all their utility bills, including gas, internet, and phone plans, to identify potential savings. She says that by tallying up your monthly savings and setting them aside, you can create a buffer against the impending reality of higher electricity bills.
Remember, energy companies are mandated to inform you if a cheaper plan is available on your bill every three to four months. Take advantage of government comparison sites like Energy Made Easy and Victorian Energy Compare for Victorian households to compare electricity rates.
To add, reach out to your current retailer to negotiate a better deal.
As you bid farewell to the federal energy rebate, it’s essential to stay informed and proactive in managing your energy expenses. Share your cost-of-living stories with the YourLifeChoices community in the comments below.
Also read: Brace for impact: Australians to face higher electricity costs soon
