On Tuesday night we got more detail about the government's plan for power bill relief after Treasurer Jim Chalmers delivered his 2023-24 budget speech in parliament.
Officially, the government is calling them "Energy Relief Payments" — but think of it more as a rebate.
The federal government had to negotiate eight different agreements with each state and territory, so it's a little complicated.
Let's make sense of what it's all about and then break it down, state-by-state.
What's the energy bill relief package?
"More than 5 million households will have up to $500 deducted from their power bills in the next financial year," Mr Chalmers said.
Eligible small businesses will get up to $650.
They key thing to remember is that this money will be taken off people's power bills.
It will not be paid directly into eligible people's bank accounts.
"Rather than spraying around cash cheques to people, we do it on the bill," Mr Chalmers said.
"It means working with the retailers and working with the states and territories."
Another crucial keyword here is "households", that's the term the government is using.
This measure is not reliant on legislation passing, so it's set in stone.
AS IT HAPPENED: Read back over our blog for all the reactions to the budget
State-by-state breakdown of energy bill relief
Here's what eligible households and small businesses will get in each state and territory.
Remember the key word here is 'eligible' — this doesn't mean every household or small business will get this relief.
ACT:
- Households: will receive a $175 annual energy rebate on their power bills
- Small businesses: will be able to access a $325 rebate
NSW:
- Households: will receive a $500 energy rebate on their power bills
- Small businesses: will be able to access a $650 rebate
Northern Territory:
- Households: will receive a $350 annual energy rebate on their power bills
- Small businesses: will be able to access a $650 rebate
Queensland:
- Households: will receive a $500 annual energy rebate on their power bills
- Small businesses: will be able to access a $650 rebate
South Australia
- Households: will receive a $500 annual energy rebate on their power bills
- Small businesses: will be able to access a $650 rebate
Tasmania:
- Households: will receive $250 per annum for two years
- Small businesses: will receive a total bill credit of $650 for 2023-24
Victoria:
- Households: will receive a $250 annual energy rebate on their power bills, in addition to the $250 Power Saving Bonus already open to all Victorians, providing $500 worth of bill relief in total
- Small businesses: will be able to access a $325 rebate
Western Australia:
- Households: will receive a $350 energy rebate on their power bills
- Small businesses: will be able to access a $650 rebate
Who is eligible for energy relief?
Generally speaking, it's for people on Centrelink payments and small businesses.
People will be eligible for energy bill relief through this measure if they:
- have a Pensioner Concession Card, (including those issued by the Department of Veterans' Affairs) (DVA)
- have a Health Care Card (including Low Income Health Care Card)
- have a DVA Gold Card
- have a Commonwealth Seniors Health Card (including those issued by DVA)
- get Family Tax Benefit (FTB) Part A or B
- get Carer Allowance.
If you're not currently on these payments, it's worth checking out if you're eligible for them.
You can check out what payments you might be eligible for via Services Australia's online tool — it'll run you though a bunch of questions to see what you may be able to get.
What if you're not eligible for energy bill relief?
You might be able to benefit from another budget measure, dubbed by the government as the "Energy Savings Plan".
Part of that is offering financing options for home owners wanting to make energy-saving upgrades to their homes: think things like battery-ready solar panels, modern appliances and double glazing on windows.
The budget has set out $1 billion for that measure, which is estimated to help more than 110,000 households.
Meanwhile, the federal government has also set aside $300 million to support energy-saving upgrades to social housing, which is estimated to help about 60,000 properties.
Do you have to apply for energy bill relief?
"This will be automatic and customers do not have to do anything," a Services Australia document says.
However, it's possible some people and businesses may need to have their eligibility confirmed.
"Services Australia will contact customers from September 2023 if any action is required."
When will this come into effect?
The measure takes effect in the new financial year, on July 1.
However, by saying customers would be contacted from September if they need to do anything, the Services Australia fact sheet suggests the deductions will not appear on bills for a few months after that.
What can I do to save power?
Check your temperature settings
- Hot water systems: The federal government's recommended setting for thermostats is 60 degrees Celsius for storage hot water systems and no more than 50 degrees on continuous flow hot water systems.
- Air conditioners: The AER recommends keeping the temperature between 23 and 26 for cooling and between 18 and 21 degrees for heating.
- Washing machines: Use a cold water cycle or, if you must use hot water, keep it below 60 degrees. A hot cycle can use up to 10 times more energy than a cold wash.
Keep draughts out
Use door snakes to block gaps in entry ways and apply weather seals to doors, windows, skirting boards, skylights and cornices.
And close the doors to rooms you're not trying to heat.
Use the sun to your advantage
Open curtains and blinds to warm a room in the cooler months — but only while the sun is shining into it.
Close the curtains or blinds before it gets dark to trap the warmth in the room and block out the cool air coming off the glass.
Switch it up — or off
Replace your showerhead with a four-star-rated, water-efficient option.
That'll cut down on water heating costs because you're using less water and, as a bonus, it will cut down on your water bills.
Go with energy-efficient LED light bulbs, which use around 80 per cent less energy than older-style ones.
Make sure you're turning off lights when you're not in the room.
And, when you're not using appliances such as washing machines, dishwashers, microwaves and even your TV, switch them off at the wall.
