$150 energy bill rebate promised in federal budget – who’s eligible?
The federal budget delivers an extended energy rebate through 2025 as electricity price hikes loom.
Treasurer Jim has delivered Australia's 2025 federal budget, with a key highlight being another round of energy bill relief for households and small businesses.
This is similar to last year's budget, which included $3.5 billion in energy bill relief, or a $300 rebate. It started on 1 July 2024 with $75 quarterly instalments, the last of which will kick in on 1 April 2025.
Who is eligible for the $150 energy rebate from 1 July?
As with last year, the energy bill relief will be available to all Australian households and around 1 million small businesses as part of a $1.8 billion package.
It will be credited directly to electricity bills by providers in $75 quarterly instalments starting 1 July 2025.
While this may offer some small relief for households struggling with the cost of living, it may be offset by looming power price hikes of up to 9% and winter, when bills tend to creep up more.
Don't wait for energy prices to go up to start saving on your bills.
You will likely find a cheaper deal right now if you haven't compared energy plans in over 12 months.
Is the energy bill relief enough?
Treasury expects Labor's energy rebate to cut headline inflation by about half a percentage point in 2025 and lower household bills by an average of 7.5% nationwide, compared to what they'd be without the extension.
"The cost of living is front of mind for all Australians and it is front and centre of this budget," Chalmers says in his live speech in parliament.
The budget builds on the progress that we have made together. It's a plan to help with the cost of living with two new tax cuts and higher wages, more bulk billing and more help with electricity bills, cheaper medicine and less student debt.
Extending the energy rebate is part of Albanese's pre-election pledge but the Coalition has begrudgingly agreed to support the extension, according to ABC's Insiders.
Will we get state-based energy rebates this year?
In 2024, a few states announced additional energy bill relief on top of the federal government's promise.
For example, Queensland gave all households a $1,000 energy rebate, and Western Australia handed out $400 in energy bill credits following a budget surplus.
Victoria took a slightly different route with $38 million in incentives to help households install solar hot water and heat pump hot water systems, among other items such as $61 million for interest-free loans for people to install solar batteries.
State and territory budgets are delivered between May and June, so we may not know until then if additional relief is in store for some households.
UPDATE 25 March 2025: We updated our news with Treasurer Jim Chalmers officially confirming the $150 energy rebate as he hands down the budget.
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