Prime Minister’s Uncertainty on Energy Rebates Leaves Households in Limbo
Prime Minister Anthony Albanese has not provided a clear guarantee that struggling households will continue to receive energy rebates beyond the end of the year, creating uncertainty for millions as power prices continue to rise. This lack of clarity has left many Australians questioning their financial stability in the face of increasing living costs.
The energy rebate program was first introduced in the 2024 budget, offering every household a $300 reduction on their power bills over the course of the year. The initial cost of this initiative was approximately $3.5 billion. In the following year, an additional $1.8 billion was allocated to extend the relief for two more quarters, with each household receiving $150. This brought the total expenditure to over $5 billion.
The current extension is scheduled to expire on December 31, and the government has not yet confirmed whether it will be extended beyond this date. During an interview on ABC’s Insiders, when pressed by David Speers about the future of the rebates, Albanese stated, “What we’ve said is this wouldn’t be in place forever. This was an interim measure.”
He suggested that the government would reconsider the issue after the release of the Mid-Year Economic and Fiscal Outlook (MYEFO) before the end of January. “We’ll give consideration to that in the lead-up to MYEFO, and make an announcement before the end of the year,” he added.
This uncertainty comes at a time when the Labor government is under increasing pressure to address rising energy costs. The Albanese cabinet is expected to meet on Monday to discuss a national gas reservation policy aimed at boosting domestic supply and reducing prices. However, no immediate solutions have been promised.
“The objective is cheaper gas,” Albanese said. “We’re examining that. We won’t be making a decision tomorrow, contrary to what has been reported.”
The energy rebates have had a noticeable impact on inflation, reducing the Consumer Price Index (CPI) by up to 0.75 per cent in 2023–24. This helped the Labor government highlight its efforts in addressing the cost-of-living crisis. However, when the federal rebates expired in mid-2025, inflation surged.
According to Australian Bureau of Statistics (ABS) figures, the CPI increased by 1.3 per cent in the September quarter, pushing annual inflation to 3.2 per cent from 2.1 per cent in June. Electricity prices were the primary driver, rising 9 per cent in the quarter and 13.1 per cent over the year after the rebates ended.
Economists warn that the rebates have masked underlying price pressures, leading to greater volatility in inflation figures. Opposition Leader Sussan Ley has criticized the scheme, calling it a “political sugar hit” and accusing the Labor government of merely covering up deeper issues.
Opposition frontbencher Alex Hawke told Sky News that the government is failing to address the root causes of rising energy costs. “The number one reason the Labor government is bailing out so many heavy industry businesses is because their power costs are doubling or tripling when they go to sign new contracts,” Hawke said.
He argued that another round of rebates would not solve the crisis. “We might have to agree with the government to another round of energy relief but that is not a solution to the power prices themselves going through the roof, because the consumer is paying more, and the government and the taxpayer, which means consumers, ultimately, are paying more as well,” he said.
“This isn’t a sustainable model.”
