No more energy rebates in 2026: How can you save on power bills now?
Treasurer Jim Chalmers has confirmed the government won't extend energy rebates into the new year, and they will expire at the end of December 2025.
The federal government's energy bill subsidy, which began in mid-2024 for all Australian households and many small businesses, has officially been axed.
Since it kicked off, we've been receiving $75 in bill credit every quarter. By the end of this year, we will have received $450 in total energy rebates.
This will come as a shock to many, given the promising signs that it would be extended, even if temporarily.
In November, Anthony Albanese told The Daily Telegraph that he wasn't ruling out another round of the $150 energy rebate.
And right after, Chalmers also alluded to a possible extension, though he did say a decision would likely be made as part of the mid-year economic and fiscal outlook.
Why is the government pulling the plug on energy rebates?
According to Chalmers, there's more than one way to offer cost-of-living relief to Aussie households.
This includes tax cuts and changes to Medicare and the Pharmaceutical Benefits Scheme, which would offer more permanent relief.
"This marks a shift in the way that we are delivering cost-of-living relief." Chalmers said when speaking to reporters in Canberra, according to SBS.
"This is a shift from temporary measures, first decided when inflation was almost 8%, a shift towards ongoing cost-of-living help."
Haven't compared energy plans in a while?
You could be missing out on a cheaper deal.
What will happen to bills now that the rebate won't be extended?
Depending on your electricity use, your energy bills could increase by $75 for the quarter. That's the most obvious outcome.
However, you can find other ways to save money.
- The most obvious action is to compare and see if there's a cheaper electricity plan available. There's up to a $700 per year price gap between the cheapest and most expensive plans in our database, so it really pays to compare.
- Check your electricity bill to see if you can save with a cheaper energy plan from your existing provider. They're supposed to display a 'better offer' message to let you know if you can save with another plan.
- Be mindful of your energy consumption during the summer months, as your bills can really blow up.
- We've shared plenty of tips in this guide, but some key ones include setting your air conditioner temperature to 24-26°C instead of a low 16°C. Every extra degree of cooling can add around 10% to your energy bill.
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