Starting from April 1, the government will issue the last round of the $300 electricity rebate to eligible households.
While many Australians are hopeful that the rebate may be extended, there are alternative ways for households to get a cash boost without waiting for government assistance.
Rebate Details and Payment Timeline
The majority of Australian households will receive their final $75 rebate in the upcoming weeks. However, households in Western Australia and those living in embedded networks have already received the complete rebate amount.
Impact of the Ending Rebate and Energy Price Increases
Research by Canstar Blue reveals that over 54% of Australians are unprepared for the hike in energy bills once the federal rebate ends. As the Australian Energy Regulator prepares to release its draft default electricity prices, it’s expected that electricity prices may rise in the coming months.
Sally Tindall, Canstar’s Director of Data and Insights, mentioned that while the temporary rebate helped keep electricity bills under control since mid-2023, the end of the rebate marks a shift back to higher electricity prices unless the government steps in to extend the relief.
Survey Findings: Rebate Extension Demanded
Canstar Blue’s research revealed that more than 80% of Australians are in favor of extending the federal energy rebate. Among these, 34% believe it should continue but with some form of means testing to target those most in need.
The Drop in Energy Costs: A Temporary Relief
Electricity prices have been lower during the rebate period, with prices dropping by 9.9% in the December quarter and 25.2% year on year.
Without the rebate, the Australian Bureau of Statistics reports that electricity prices would have only increased by 0.2% in the same period.
How Can You Prepare for the Energy Price Rise?
If you’re worried about the impact of rising electricity prices, switching to a more cost-effective electricity plan could provide some financial relief.
According to Canstar Blue, a Sydney household could potentially save up to $386 per year by switching from the average-priced electricity plan to one of the cheapest options available.
Similarly, a typical household in Melbourne could save $319 annually, while Brisbane households could save $445 per year.
Additional Ways to Cut Costs
Beyond switching electricity providers, there are several other expenses you can review to save money. Tindall suggests looking into cutting costs on gas, internet, and phone plans.
By identifying monthly savings in these areas, you can build a cushion of extra cash to prepare for the higher electricity bills.
“Tally up your savings and set aside the extra money in a safe place, ready for when your full electricity bill arrives,” advised Tindall.
How to Find Cheaper Plans
Electricity companies are required to notify you every three to four months if a cheaper plan is available.
For those looking to explore alternative electricity plans, the Energy Made Easy comparison site is a useful resource for households across Australia, with the Victorian Energy Compare site serving as a great option for Victorian residents. Alternatively, you can always contact your current retailer to negotiate a better deal.
As the government’s $300 electricity rebate comes to an end, it’s important for Australian households to prepare for the potential rise in electricity prices.
While many are hopeful for an extension of the rebate, households can still take proactive steps to reduce their energy bills by switching providers, reviewing other service plans, and setting aside savings.
Taking action now can help ease the financial impact of higher energy costs and ensure that you’re financially prepared for the future.
FAQs
When will the last round of the $300 electricity rebate be issued?
The final round of the rebate will be issued to eligible households starting April 1.
How much can I save by switching electricity providers?
For a Sydney-based household, switching to a cheaper plan can save up to $386 annually, while households in Melbourne and Brisbane can save $319 and $445, respectively.
Will electricity prices increase after the rebate ends?
Yes, benchmark electricity prices are expected to rise, and many households may face higher bills once the rebate finishes.
How can I find cheaper electricity plans?
You can use government comparison websites such as Energy Made Easy or Victorian Energy Compare, or you can directly contact your existing electricity retailer to ask for a better deal.
Do we get the $ 300 energy rebate in our bank account because I share a house and pay my share but not on the power bill