Households hoping for cost-of-living relief in this year’s federal budget will welcome comments from Prime Minister Anthony Albanese this morning that hinted at extended energy price help in this year’s federal budget.
In a speech to the COSBOA National Small Business Summit, Albanese touted the package from the last budget that gave eligible families up to $500 off their power bills and eligible small businesses up to $650.
“Our government understands that for small business – as for Australian families – energy bills remain a source of financial pressure,” he said.
“That’s why the energy bill relief package I negotiated with the states and territories delivered up to $650 in savings for around 1 million small businesses, along with 5 million families.
“And it’s why we created the small business energy incentive – a new tax deduction to help any business with a turnover of under $50 million invest in energy efficiency and storage, such as upgrading to more efficient appliances or installing batteries and heat pumps.
“Helping Australian families and small family businesses with their energy bills was a key priority in last year’s budget.
“It helped people under pressure – and it helped fight inflation.
“And as we put together next month’s budget, small businesses and families will again be front and centre in our thinking.”
The comments are the strongest indication yet that the energy price help will be retained for another year.
Power prices have risen significantly in recent years, although draft determinations by energy regulators for much of eastern and southern Australia indicate households are set to see their bills decrease next financial year, while others will only receive small increases.
Treasurer Jim Chalmers has previously said that cost-of-living relief will form part of the budget when it is unveiled on May 14.
But he also warned against expecting too many new policies, noting that many of the most significant programs – such as the stage 3 tax cuts rework and superannuation on paid parental leave – have already been announced.
“There will likely be additional cost of living help in the budget but it won’t be anywhere near the magnitude of the tax cuts,” Chalmers said in a speech last month.
“We are already providing a tax cut to every taxpayer, and a bigger tax cut to more workers, we need to be upfront and say that any additional help will only be a fraction of that.
“Any extra help will be targeted, responsible and affordable.
“There will not be big cash splashes in the budget, simple as that.”