Power bill relief is on the way for some, with the government promising billions of dollars for eligible businesses and households.
The Energy Price Relief Plan in tonight’s budget comes after months of “unacceptable” energy price rises, which the government has attributed to Russia’s invasion of Ukraine.
Here’s how you can tell if you’ll be getting some relief on your upcoming bills.
How much is on the table?
The federal government will provide up to $3 billion in relief, in partnership with state and territory governments.
It will be available to eligible households and small businesses.
Households will receive rebates of up to $500 in the next financial year, businesses up to $650.
The budget revealed the support would target more than five million households “most in need”, including concession card holders, households receiving family and carers payments, and recipients of electricity concessions under existing state and territory schemes.
About one million small businesses will also be eligible.
How will I receive the rebate if I’m eligible?
The government will provide direct relief in the form of reductions to electricity bills.
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This will help reduce any potential inflation that may come in the form of a cash-in-pocket boost.
What if I’m not eligible?
The budget also established a billion-dollar Household Energy Upgrades Fund, which will go towards more than 110,000 low-interest loans for energy-saving home upgrades.
More energy-efficient homes can pass on significant power bill savings, the government said.
The fund will also upgrade 60,000 social housing properties in a bid to cut power bills on them by one-third.
Small businesses with an aggregated annual turnover of less than $50 million can also access the Small Business Energy Incentive, which the government forecasts to offer $310 million in tax relief that will help pay for energy efficiency upgrades.
So what happens to bills once the relief is gone?
The federal government estimates retail electricity prices will increase by 10 per cent in 2023-24.
But this was lower than the previous 36 per cent increase forecast before federal intervention.
Overall, the government estimates the new energy price relief will help shrink inflation by 0.75 per cent.
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