New rebates to offer financial relief for Aussies facing rising power bills

As energy prices continue to climb, Australians are set to receive a much-needed reprieve with a $150 rebate to help ease the financial burden of rising power bills.

Set to take effect from July 1, 2025, this new rebate will be automatically applied to the electricity bills of every household and approximately one million small businesses across the country—in addition to the rebates already rolling out.

The rebate is a centerpiece of Labor’s pre-election budget, which will be revealed Tuesday, March 25. With the rebate costing around $1.8 billion, Prime Minister Anthony Albanese emphasised the government’s commitment to relieving the financial strain on families.

“We are going to take a further $150 right off your power bill because helping your family budget is our number one priority,” Albanese said.

“This is another cost-of-living relief measure that my government is delivering for Australians while putting downward pressure on inflation”.

According to Treasury estimates, the rebate will reduce household energy bills by an average of 7.5 per cent and help curb inflation by half a percentage point. The move comes as electricity prices are set to rise later this year, with the Australian Energy Regulator recommending an 8.9 per cent increase in some parts of the country.

The coalition has offered its support for the rebate, committing to it regardless of who wins the election, which will be held in May.

The rebate could not come at a more crucial time after a new report by the Australian Council of Social Service (ACOSS) found that of 1,011 Australians surveyed, 50 per cent are going without essentials such as meals and medicine to try and cover the cost of their energy bills. Many are selling personal belongings or relying on buy now, pay later schemes to make ends meet. The survey also shows the severe health consequences of living in homes that get unbearably hot. Over 90 per cent of respondents reported negative impacts from excessive heat, with 14 per cent seeking medical attention in the past year due to heat-related illnesses.

Despite taking steps to reduce their energy use, such as cutting back on lights and air conditioning, nearly two-thirds of respondents are still struggling to pay their bills. This is a reality for many, including 88 per cent of First Nations respondents, 76 per cent of renters, and 75 per cent of people receiving income support.

ACOSS CEO Dr Cassandra Goldie said: “It’s a complete travesty that in one of the world’s wealthiest nations people are getting sick, skipping meals and delaying medical appointments because they can’t afford to cool and power their homes.

“Climate change is making heatwaves more frequent and intense, with more deaths related to heat than all other natural disasters combined. We urgently need to help people improve the thermal performance of housing, electrify and access rooftop solar and home batteries, with the most help going to low-income and First Nations housing.

“The government must also deliver permanent cost of living relief by raising the rate of JobSeeker and related payment, and the remote area allowance, so people on low incomes can afford their energy bills and be lifted out of poverty.”

-with AAP.