A $300 energy relief payment announced for all households: Here’s how it’ll work.

One of the major highlights of the government’s 2024-25 Federal Budget is the introduction of a $300 energy rebate for all Australians. But what does this rebate entail, and are there other energy concessions available?

Reducing the cost of living was a central focus of the Treasurer's Federal Budget announcement on Tuesday night. In addition to significant tax cuts, the budget includes a $300 rebate on energy bills for every household in Australia, regardless of income level.

So, what exactly does this rebate mean for you? Will you receive $300 in cash, or will it be deducted from your upcoming energy bill? Here’s a breakdown of how the rebate works and what you can expect.

$300 energy rebate: Who gets it?

Treasurer Jim Chalmers highlighted in his post-budget discussions on Tuesday that the $300 payment is inclusive, applying to all Australian households, regardless of income.

However, it’s crucial to understand that the rebate is provided per household, not per individual. This means each household will receive a single $300 rebate, no matter the number of occupants.

Finance Minister Katy Gallagher explained: "We identified this approach as the most efficient way to provide short-term relief over the next 12 months, reaching a broader audience than just those with concession cards."

Additionally, a $325 payment will be given to one million small businesses as part of an expansion to the government’s Energy Bill Relief Fund program. In its initial phase in 2023-24, the $1.5 billion fund provided $50 payments to five million low-income and pensioner households and supported one million eligible small businesses.

How will it be distributed?

Your energy retailer will automatically apply the $300 rebate to your upcoming electricity bills, so you won’t receive it as a direct bank deposit or a check.

Instead of receiving the entire $300 at once, it will be divided across your next four quarterly bills, giving you a $75 credit each time. If you pay your bills more frequently than quarterly, you’ll still receive a $75 credit every quarter. For instance, if you pay monthly, the $75 credit will appear on every third bill.

The rebate has been created to offer Australian households some relief. Previous rebates, such as the Victorian Energy Rebate, required customers to do a comparison and provide bank details to receive the relief they needed. The new rebate offers additional convenience by going directly onto bills, instead. 

How can I avoid paying too much for energy?

The best thing that you can do is contact Compare Energy today. Energy prices are known to fluctuate, and it's our job to help you to compare your rates and learn all about the available concessions in your state. 

Unsure what the concessions are in your state? How are your energy bills looking lately? Are you finding them manageable? Speak to our team today and let us help you to reduce your energy bills for the next financial year.