Families around the country have been warned electricity prices are forecast to rise again from next year after Labor hands out its energy relief rebates.
The Albanese government has promised to provide an extra $150 payments – split $75 each quarter – from July 1 to help struggling households and businesses.
The assistance comes amid a push from Labor and the Coalition to address the cost of living crisis – the number one issue for voters ahead of the May 3 Federal Election.
But by the end of 2025, power bills are forecast to rise by 15 per cent.
The cost for an average household is estimated to be about $428 in the first quarter of this year, taking into account Labor’s $75 rebate, according to News Corp.
However, from January the bill is set to inflate to $503.
The Prime Minister has been repeatedly asked when electricity bills will come down, following the failure to deliver a $275 reduction in energy promised in the last election.
Speaking to Sky News host Peter Stefanovic, independent MP Zali Steggall suggested a means test for subsidies given the looming rebate is offered to all Australians.
“The problem is the most vulnerable in our community on Job Seeker, Youth Allowance, the pension, those areas have not significantly increased in this term,” she said.
“And whilst they’re meeting increased costs of living and higher energy prices, (they) are not getting assistance. So, what I want to see when these rebates come to an end is more targeted approach of support for the most vulnerable cause at the moment those rebates are just applied to the entire population without any kind of means test.”
On the panel was also Nationals Senator Bridget McKenzie who pushed the Coalition’s gas policy which the opposition believes could reduce power by 3 per cent from next year.
“Our plan to actually get more gas into the market quicker we know will bring down prices of energy not just for the household but importantly for businesses which will have flow-on impacts right through the economy on price of goods,” she said.
“We will deal with the problem rather than Band-Aids.”
Welfare groups are appealing to Prime Minister Anthony Albanese and Opposition Leader Peter Dutton to offer long-lasting alternatives to lower prices.
One option they suggest is extending the subsidy but that would cost billions.
Education Minister Jason Clare was asked on Channel Seven’s Sunrise if Labor would provide ongoing relief, if the government was re-elected.
He flagged “it’s something we will look at the end of the year”.
Redbridge Group Director Kos Samaras supported Ms Steggall’s means test call, suggesting power relief needs to continue for Labor if it did not have alternative solutions.
“The only solution there for whoever is in government is to means test it. And apply to people who do need it,” Mr Samaras.
“One of the biggest criticisms about this current handout is it’s universal.”
There is just over two weeks until voters head to the polls.
