CANBERRA, March 23 (Xinhua) -- The Australian government has announced an extension of energy rebates, offering households and small businesses an additional 150 Australian dollars (around 94 U.S. dollars) in electricity bill relief from July 1.
The measure, costing 1.8 billion Australian dollars (1.13 billion U.S. dollars), will run until the end of 2025 as part of the ruling Labor government's broader cost-of-living strategy, automatically applied to users' electricity bills in quarterly installments, in addition to the existing rebates already in place, the ruling party said in a statement on Sunday.
Treasury estimates the extension will lower headline inflation by about half a percentage point in 2025 and reduce household electricity bills by an average of 7.5 percent compared to bills without the rebate, according to the statement.
In 2024, power prices dropped by 25.2 percent, whereas without the rebates, the decline would have been just 1.6 percent, the Labor statement cited the Australian Bureau of Statistics as saying.
Treasurer Jim Chalmers said the move provides much-needed relief while keeping power prices lower than they would be without government intervention, according to the Australian Broadcasting Corporation (ABC).
Prime Minister Anthony Albanese emphasized the policy's role in easing inflationary pressure and reaffirmed Labor's commitment to supporting household budgets.
Labor originally promised to cut power bills by 275 Australian dollars (172.51 U.S. dollars) annually in the 2022 election but has since faced criticism as energy costs surged due to global market pressures. The government argues its energy bill relief has effectively reduced household expenses despite the price hikes, ABC reported.
Chalmers will unveil his fourth budget on Tuesday.
Labor had initially planned for an April 12 election but delayed it due to Cyclone Alfred, according to the ABC. ■