In a move to alleviate rising energy costs, the Australian government has unveiled a $1.8 billion budget provision to provide a $150 energy bill rebate to households and small businesses.
This initiative aims to offer immediate financial relief and address ongoing cost-of-living challenges.
Overview of the Energy Bill Rebate
Starting from July 1, 2025, every Australian household and approximately one million small businesses will receive a $150 rebate on their electricity bills.
This rebate will be automatically applied in two quarterly installments of $75 each, extending the relief through the end of the year.
This measure succeeds the previous $300 annual rebate, which was distributed in four $75 quarterly installments and concluded on June 30, 2025.
Impact on Households and Small Businesses
The rebate is designed to provide tangible financial relief amid escalating energy prices. According to Treasury estimates, this initiative is expected to reduce household energy bills by an average of 7.5% compared to what they would be without the extension.
Additionally, it is projected to lower headline inflation by approximately half a percentage point in 2025.
Increment In Projected Electricity Price
Despite the rebate, electricity prices are anticipated to rise from mid-year. The Australian Energy Regulator has recommended increases to the default market offer (DMO), which sets the maximum amount retailers can charge customers in certain regions.
Under the draft determination, households’ power bills could rise between 2.5% and 8.9%, depending on their location, while small business customers might see increases ranging from 4.2% to 8.2%.
What Is The Government’s Commitment?
Prime Minister Anthony Albanese emphasized that this rebate is part of the government’s broader strategy to provide cost-of-living relief while mitigating inflationary pressures.
He stated, “This is another cost-of-living relief measure that my government is delivering for Australians while putting downward pressure on inflation.”
The government acknowledges that while the rebate offers immediate assistance, it also underscores the need for long-term structural reforms in the energy sector to ensure sustainable affordability.
Opposition’s Stance
The Coalition, led by Opposition Leader Peter Dutton, has expressed criticism of the rebate program, labeling it as a temporary fix that fails to address underlying issues in the energy market.
However, the Coalition has stated that they will not oppose the extension of the rebate, recognizing the immediate relief it provides to Australians facing high electricity prices.
Shadow Finance Minister Jane Hume commented, “The Coalition will not stand in the way of much-needed energy relief from these high electricity prices, high gas prices that are caused by Labor’s failed policies.”
Comparison of Energy Relief Measures
To provide a clearer understanding of the government’s energy relief initiatives, the following table outlines the previous and current rebate programs:
| Aspect | Previous Rebate Program (2024-2025) | Current Rebate Program (2025-2026) |
|---|---|---|
| Total Rebate Amount | $300 | $150 |
| Distribution Method | Automatic quarterly installments | Automatic quarterly installments |
| Installment Amount | $75 per quarter | $75 per quarter |
| Program Duration | 1 year | 6 months |
| Total Budget Allocation | $3.5 billion | $1.8 billion |
The Australian government’s decision to extend the energy rebate program reflects its commitment to providing immediate financial relief to households and small businesses amid rising energy costs.
While the $150 rebate offers short-term assistance, the anticipated increases in electricity prices highlight the necessity for comprehensive and sustainable energy policies.
As the nation approaches the upcoming federal budget, energy affordability and cost-of-living measures remain central topics of discussion.
FAQs
Who is eligible for the $150 energy bill rebate?
All Australian households and approximately one million small businesses are eligible for the rebate, which will be automatically applied to their electricity bills in two $75 quarterly installments starting from July 1, 2025.
Do recipients need to apply for the rebate?
No, the rebate will be automatically applied to eligible electricity bills; no application is necessary.
How will the rebate affect overall electricity costs amid rising prices?
While the $150 rebate provides immediate financial relief, electricity prices are still expected to rise between 2.5% and 8.9% from mid-year, depending on the region. The rebate aims to offset some of these increases, reducing household bills by an average of 7.5% compared to what they would be without the extension.