‘Pure political pork’: government ends energy bill rebate as treasurer flags ‘difficult’ budget decisions

The treasurer, Jim Chalmers, says ‘there will be difficult decisions and savings to be made’ in next week’s mid-year budget update as Labor axes energy bill subsidies. Photograph: Mick Tsikas/AAP

Jim Chalmers has foreshadowed more “difficult decisions” in next week’s mid-year budget update after cabinet decided not to extend billions of dollars in energy bill rebates into the new year.

The withdrawal of the power bill subsidies comes as the Reserve Bank’s monetary policy board mulls a recent rebound in inflation that could force the central bank to hike interest rates next year.