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Australia will discontinue its electricity bill rebate program at the end of December, ending direct energy assistance that has provided more than $8 billion in relief to households over three rounds, Treasurer Jim Chalmers announced Monday.
The decision marks a significant shift in the government’s approach to cost-of-living pressures, moving away from temporary rebates toward permanent measures including tax cuts and Medicare improvements. The Commonwealth spent nearly $7 billion on the program, with states and territories contributing an additional $1.5 billion.
“This wasn’t an easy decision, but it’s the right decision,” Chalmers said during a press conference, noting the rebates were implemented when inflation reached nearly 8% but were never intended as a permanent budget feature.
The treasurer emphasized that Australians will receive approximately $50 per week through three rounds of tax cuts, which he described as ongoing relief that households can apply to electricity bills and other expenses. The shift comes as the government prepares to release its mid-year budget update next week, which Chalmers indicated will include additional savings and difficult fiscal decisions.
The announcement drew immediate questions about timing, coming as households face summer electricity costs and year-end financial pressures. The rebates officially expire December 31.
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