The Federal Government, in the May 2024 Budget, announced that every Australian household would receive a $300 energy rebate to help combat cost of living pressures. At BeMoved, we are here to explain exactly what this means and where you can access your energy rebate.
The new energy rebate will start from 1 July 2004 and is expected to benefit more than 10 million households. Households will benefit from the $300 credit automatically being applied to their electricity bills over four quarterly instalments of $75 throughout the course of the 2024/2025 financial year. This means that you won’t need to fill in forms or apply to see if you are eligible, you will simply be able to review your bills and see that you have been credited $75 each quarter. The timing of the credit will depend on your billing cycle.
If you live in a strata apartment building, retirement village or caravan park where the landlord provides the electricity through an embedded network you will receive the rebate through your state or territory government. It’s also important to note that it may take several months to appear on these bills.
For customers located in Queensland you may be eligible for this rebate and the Queensland Cost of Living Rebate.
For customers in NSW, you may also be able to receive additional credits towards your energy bill by taking up a new eligible plan with a participating retailer. Origin Energy, Energy Australia and AGL are all offering a $200 credit on participating plans for new customers or customers moving house. To explore your options visit https://www.bemoved.com.au/utilities
What’s different?
At BeMoved we have looked at the key differences between the energy rebates on offer between this year and last year. Importantly this year energy rebates are not means tested, this key difference is that they are open to everyone rather than just those who fulfill the requirements or categories of being a low income earner, concession card holder or pensioner.
Rebates part of government plan to tackle inflation
The Government is trying to tackle inflation and have indicated the May budget is designed to do just that. Treasurer Jim Chalmers MP, Chris Bowen MP, Minister for Climate Change and Energy and Senator Jenny McAllister, Assistant Minister for Climate Change and Energy have all described this rebate scheme as playing a key role to ease pressure on Australians and put downward pressure on inflation.
They have highlighted, and recognised, that many Australians are under financial pressure, and believe the extension and expansion of the energy rebates to $3.5 billion for this relief, will deliver cost-of-living help to more Australians.
What’s all this talk of inflation?
According to the Federal Government the energy rebates are designed to directly reduce headline inflation by around half of a percentage point in 2024–25 and are not expected to add to broader inflationary pressures.
Inflation has been in the spotlight in recent times with increases in interest rates designed to reduce the inflation rate, or in other words the continued rise in the prices of goods and services that households buy. The inflation rate went through a period of strong increases, peaking at 7.8 per cent in the June quarter of 2022. As a result, the Reserve Bank of Australia lifted interest rates 13 times in order make households reduce their spending and in turn see the inflation rate slowly begin to come down.
It’s important to know that the target inflation rate is between 2 and 3 per cent. In the March 2024 quarter it is sitting at 3.6 per cent. Some experts believe that the energy rebate will not assist in reducing headline inflation as the energy bill relief will mean that nationally, household bills will be 17 per cent lower on average compared to the previous year with experts saying this reduction will only free up spending on other items which will drive inflation higher.
What to do now?
To receive your $300 rebate, you don’t have to fill in any forms or agreements or submit any information for your household, it will just appear on your bill. You may also be able to make further savings by investing some time in comparing your energy bill.
At BeMoved, we recommend that all households should review their energy bills on a regular basis and compare their current plan to plans from other retailers. As noted in their December 2023 press release, according to the ACCC, 79% of existing households paid more than the median market offer that retailers offer to new customers, with the Australian market regulator acknowledging that these customers could save by switching providers.
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