Energy in the Budget: What relief will Aussies get this winter?

It is no secret that Australia is facing a massive energy crisis with the cost of electricity continuing to rise. This has many everyday Aussies also trying to pay for other things like groceries, public transport and schooling.

The new federal budget came Tuesday night and Treasurer Jim Chalmers issued some initiatives to help with the ongoing energy crisis. Let’s take a look.

How much money has been promised?

An overview:

• Federal government will provide up to $3 billion in relief in partnership with state and territory governments. 
• 5 million households and 1 million businesses will have their bills rebated from July
• Eligible households can get up to $500 in rebate in the next financial year and eligible businesses can get up to $650. (This money will not be paid into people’s bank accounts, it will be taken off people’s power bills.)
• In New South Wales, Victoria, Queensland, South Australia and Tasmania the federal government will contribute $250 to eligible households and this will be matched by the state governments making the total payment $500.
• In Western Australia, The Northern Territory and the ACT households will only get $350 ($175 from the federal government and $175 from state governments)
• For eligible small businesses (businesses that meet the definition of electricity small customer), the federal government will contribute $325 which will be matched by states and equal a total payment of $650. 
• $1 billion has also been promised as part of the Energy Savings Plan which is to offer financial support to home owners wanting to make energy-saving upgrades to their homes (e.g solar panels or double glazed windows).

Who is eligible?

The energy bill relief is to be given to more than five million households that are “most in need.”

This includes households who have a Pensioners Concession card, a Commonwealth Seniors card or a Health Care Card, get a family tax benefit (part A or B) or get a Carer Allowance.

The government has said that should be automatic and eligible households shouldn’t have to do anything to receive the rebate.

In terms of the proposed “Energy Savings Plan”, about 110,000 households will be able to receive low-cost loans to make energy-saving upgrades to their homes. So far, eligibility criteria has not been decided.

Other ways to save money on energy

Now that we’re going into winter it’s likely that you will be using more energy. However, there are ways to reduce unnecessary energy usage and keep your bill down.

• Stay warm in other ways, such as wearing more clothing or investing in warm blankets. For more tips, check out our guide.
• Make sure your heater is energy efficient. If you’re in the market for a new heater, find out which types use the least energy
• Compare competitive energy plans and consider switching providers if it will help you save money. Compare energy plans with Mozo.