The Australian government has announced that it will discontinue electricity bill rebates after December 2025. Treasurer Jim Chalmers confirmed this decision on December 8, stating it marks the end of a significant aspect of the Labor government’s cost-of-living support initiative. Chalmers described the decision as “difficult,” but emphasized that the program was always intended to be temporary.
The Energy Bill Relief Fund has provided three rounds of rebates: a universal subsidy of $300 for the fiscal year 2024–25, followed by a $150 payment starting in July, with the current round concluding on December 31, 2025. Chalmers noted that the Commonwealth has invested nearly $7 billion in these rebates, with states and territories contributing an additional $1.5 billion.
Chalmers indicated that the government is shifting its focus from temporary subsidies to more permanent measures for cost-of-living relief. He stated, “We’ve encouraged people not to see these as a permanent feature of the budget,” highlighting a transition to assistance through the tax system, Medicare, and pharmaceutical benefits. Upcoming tax cuts set to begin in 2026 are part of this new approach.
Inflation and Rising Costs
This announcement comes at a time when headline inflation in Australia has risen to 3.8 percent. According to the latest data from the Australian Bureau of Statistics (ABS), electricity prices have increased by 37.1 percent. This surge is partly attributed to the conclusion of state rebates in regions such as Queensland and Western Australia, as well as timing effects from the Commonwealth’s lump-sum payments. Even excluding rebates, electricity prices rose by 5 percent due to annual retail price adjustments.
Chalmers explained that the initial rebates were introduced when inflation was nearing 8 percent and were designed to help households during a challenging economic period. The decision to end the rebates reflects the government’s ongoing evaluation of the most effective means to support citizens facing rising costs.
As financial pressures continue to impact many households, the Australian government remains committed to finding sustainable solutions to assist citizens in managing their expenses.
