Australia's government said on Sunday that a federal budget this week would include an A$1.8 billion extension to a scheme to reduce energy bills, ahead of what is expected to be a closely-fought general election due by May.
Prime Minister Anthony Albanese's centre-left Labor government has already handed out A$3.5 billion in energy bill relief in a bid to tackle inflation, as it grapples with rising living costs in the nation of around 27 million.
On Sunday, ahead of handing down on Tuesday its final budget before the election, Albanese said Australian households and around one million small businesses would get another A$150 "in rebates automatically applied to their electricity bills in quarterly installments".
"Treasury estimates this will directly reduce headline inflation by around half of a percentage point in 2025," Albanese said in a statement, which costed the measure at A$1.8 billion.
The government's main political opposition, the conservative Liberal-National coalition, said it would not oppose the scheme's extension, after the country's energy regulator last week warned that power prices in some eastern regions could surge by nearly 9% from July.
As announced on Saturday, the budget will also expand a scheme to help would-be home buyers get on the property ladder, as housing, the largest contributor to the rising cost of living in Australia, shapes up as a key election issue.
The budget pledges come after a widely-watched poll in February showed most Australian voters wanted the Labor government out of office. In the poll, Albanese's approval rating hit its lowest point since he was elected to office in May 2022.
The government, which has not yet officially called the election, is working to lift support via a slew of measures aimed at pleasing families and businesses grappling with high living costs.
Australia's central bank, which in February cut rates for the first time in more than four years, warned at the time that it was too early to declare victory over inflation and was cautious about the prospects of further easing.
© Thomson Reuters 2025.
17 Comments
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GuruMick
The opposition party leader not popular either.. .if looks could kill we,d all be dead.
The Trump lite experiment used by the opposition probably dead also, most Aussies not fans of current US pres.
Australians are usually voters of protest and discontent, rather than of future aspiration and unfortunately have fallen for Liberal lie campaigns in the past.
Electricity prices high because we sold to overseas interests, all the means of generating electricity.
BorisM
Basically a tacit admission that Labor's energy policy has been an abject failure, putting the fraud of net-zero above everything else, forcing conventional infrastructure to become too expensive, and allowing Australian gas to be sold for a song overseas (that part was mainly LNP PM Howard's fault - but Labor have done nothing to remedy that) while Australians pay through the nose for it.
Whatever happened to that promise of power being $275/yr cheaper? It was an outright lie to buy votes. Hopefully most Aussies won't fall for it again.
Kaowaiinekochanknaw
Buying votes with the tax money of the voters.
Priceless.
JJE
Another virtue signalling Labor government heading to its doom.
Adopting a globalist elite foreign policy, it never occurred to him to ease the cost of living pressures until now. This is shameless attempt to buy off the working-class voter that he so unconvincingly pretends to represent.
He thought forking out money abroad gave him a size nine halo. PM Albanese has spent his entire term pandering to the global elites and is about to reap what he sowed. The guy is consumed in diversity politics and fanatical signalling, so deluded he recently declared foreign leader have "enormous respect" for him.
Peter14
These payments are an absolute help to everyone, every household, It makes a big difference on my bill so thanks Labor. A fairly applied assistance package.
GuruMick
Health, Social Security, University and other education, tax threshold raised to $18000 pa, pensioner support etc.
All Labor initiatives...all under attack by conservatives.
John-San
It won,t buy votes for Labour but it will get more Teal seats in Parilment which means ditching the Subs deal with the USA. I see us getting closer with Asia and Japan in particular
HopeSpringsEternal
Buying votes, like anywhere else. Global affordability crisis real, due to currency real asset purchasing power destruction since Covid & Global Ukraine Proxy War.
US$ has lost +3x its real purchasing power vs. diversified CRB commodity index, most currencies like Yen worse, why Japan's Govt. also now subsidizing Electricity and Gas
wallace
The government is not currently $subsidizing electricity and gas. $Check your bills.
GuruMick
Just a reminder...voting compulsory in Oz...failure to vote has about a $200 fine. Long time O/S residents can get an exemption.
What percentage of eligible US voters bother to vote I wonder. ?
Peter14
The fine for not voting in federal elections in Australia is $20 AUD and it is called an administrative penalty.
https://www.aec.gov.au/Elections/non-voters.htm
Jay
Aus' political landscape is a tragic joke, and this budget is just another desperate bribe before an election that will change nothing.
Labour will keep bleeding the country dry while pretending to care about working Aussies.
The Libs are just a slightly slower-moving trainwreck in the exact same direction.
The Teals? A bunch of Greens in disguise, pushing the same unhinged eco-socialist agenda while pretending to be moderates.
One Nation has embarrassed itself by selling out for the Indian vote as Pauline does a bit of Sikh cosplay like another famously desperate Canadian politician at a Diwali party.
And Clive Palmer’s latest attempt at a real alternative had promise, but ended up looking like an absolute clown show.
The result? No real choices, just a bleak, uninspiring future where Australia continues to circle the drain while Canberra only gives a stuff about Canberra and hope people are too dumb to notice the decline.
BorisM
Thanking the party that created the problem in the first place is hilarious.
GuruMick
Peter you are right about $20, not $200 fine in Federal election , for failure to vote. Name change to "admin cost " or whatever doesnt obscure the fact that it is a financial penalty...fine in my book.
What is the penalty if you dont pay "within prescribed period "...I couldnt find it.
Funny, state election fines are higher, NSW is $55.
GuruMick
If you dont pay, you go to Court, who may imprison you !
Just checked the legislation.
So, vote early, vote often , as we say in the Labor Party.
GuruMick
Failure to vote and fail to pay the $20 "admin costs "
Go to Court...1 penalty unit or $330 , is the fine. Fail to pay...ooh "pobricito "
So, hurrah...I was half right after all when I said $200 fine.
Peter14
It absolutely is a fine Mick, your right.
Different amount for Federal, State and even municipal (local) elections. They are all fines. You can turn up, have your name checked off and not vote, there is no fine for that or an informal vote since all votes are anonymous.
It is a financial incentive to encourage participation in the election process. The freedom of choice to vote your conscience is something not all nations embrace even those with democracy. But it stops minorities of 20-30% from choosing government while the rest choose not to be involved and then complaining about who got elected to power later.
It is by no means a perfect system but it works well enough. Pity we dont seem to get good leaders to choose from.