In a much-needed move to support Australians grappling with soaring energy costs, the government has confirmed an extension of the popular energy rebate scheme. As part of the 2025 Federal Budget, every Australian household and one million small businesses will receive an additional $150 energy rebate. This announcement, made by Prime Minister Anthony Albanese, is part of a broader $1.8 billion commitment aimed at providing “immediate relief” for power bills.
Table of Contents
The extension will deliver two automatic quarterly instalments of $75 each, providing financial respite for Aussies through the remainder of 2025. With rising electricity prices on the horizon, this rebate is a vital lifeline to offset the financial burden many households face when it comes to their utility bills.
What Does This Extension Mean for Australians?
The announcement of the additional $150 rebate follows the success of last year’s $300 energy rebate, which was distributed throughout the financial year. This year, the relief will come in the form of two $75 instalments, automatically credited to energy bills beginning July 1. The government hopes this extension will help alleviate the pressure many households and small businesses feel as they face the prospect of higher power prices.
While the extension of this rebate has faced criticism from the Coalition, the opposition party has confirmed they will not oppose the plan. This means that no matter which party emerges victorious in the upcoming election, Australians can expect to see this relief applied to their energy bills.
How Will the $150 Rebate Work?
The energy rebate extension will follow a similar process to last year’s program, with the $150 spread over two payments of $75 each. Importantly, the rebate is not means-tested, meaning every household is eligible to receive it regardless of income.
The first $75 instalment will be credited to electricity bills from July 1, 2025, providing immediate financial relief. The second instalment will follow in the subsequent quarter, helping Aussies manage their energy bills through the remainder of the year. Additionally, households with multiple properties will be eligible to receive the rebate more than once, ensuring homeowners with multiple dwellings can also benefit from the scheme.
The Rising Cost of Electricity: How Much Will Bills Increase?
While the energy rebate provides much-needed relief, electricity prices across Australia are expected to increase starting July 1, 2025. Retail electricity prices in New South Wales, south-east Queensland, and South Australia are regulated by the Australian Energy Regulator (AER) through the “default market offer.” Unfortunately, these benchmark prices will rise significantly, leading to higher power bills for many Australians.
In NSW, for example, prices will increase by up to 8.9%, while in South Australia and south-east Queensland, prices will rise by 5.1% and 5.8%, respectively. For the average household on a single-rate plan, this could translate into an increase of up to $200 in their electricity bills.
The government hopes that the $150 rebate extension will help offset some of the financial strain caused by these increases. Even with the rising prices, many Australians will see some relief with the rebate, making it a timely intervention as the cost of living continues to climb.
Millions of Aussies to Receive Centrelink Boost Tomorrow
Centrelink Alerts Thousands at Risk of Missing Out on $1,000 Cash Boost
$600 Centrelink Cash Boost Coming: Check Exact Payment Date & Eligibility
What Are the Key Dates for the Energy Rebate?
- July 1, 2025: The first $75 rebate will be applied to electricity bills.
- Quarterly Instalments: The rebate will be issued in two instalments, helping ease the financial burden across the year.
A Lifeline for Small Businesses
In addition to households, one million small businesses will also benefit from the $150 energy rebate extension. Small businesses across the country have been struggling with higher operational costs, and this financial assistance is designed to ease the pressure on these vital economic players. By reducing energy expenses, small business owners can better focus on growth and development, knowing that their energy bills are being partially alleviated.
Conclusion
As electricity prices are set to rise in the coming months, the Australian government’s decision to extend the $150 energy rebate offers a significant cushion for households and small businesses. With the rebate automatically applied to power bills in two instalments, it will provide much-needed financial relief to millions of Australians. Although the Coalition has critiqued the scheme, it remains committed to supporting the rebate, ensuring that this relief will continue regardless of election outcomes. This extended energy bill relief is a vital part of the government’s broader strategy to ease cost-of-living pressures for Australians in 2025.
Leave a Reply