The Australian federal government has announced a $1.5 billion package to provide energy bill relief to five million households and one million businesses. The relief will come in the form of subsidies for electricity bills for pensioners, small businesses, and people on government payments, with the amount of assistance varying depending on location and energy agreements with state and territory governments. The package is part of a broader cost of living package in the budget that offers support to multiple age groups. The government will also fast-track taxes on gas industry profits to pick up revenue not due to be paid until the 2030s. The changes to the Petroleum Resource Rent Tax (PRRT) will cap deductions at 90%, generating an estimated $2.4 billion over the next four years. The PRRT generates an average of $2 billion a year and has been criticised for providing insufficient return to Australia. The budget will also increase indexation for funding for government and community services, including mental health, disability, domestic violence, and homelessness services, the Medicare Benefits Schedule, and community nursing.
Energy Bill Relief Package
The energy bill relief package will provide subsidies for electricity bills for pensioners, small businesses, and people on government payments. The size of the assistance will depend on where the recipient lives, as the Albanese government has negotiated eight different energy agreements with state and territory governments. Treasurer Jim Chalmers said in an interview with the ABC that “more than 5.5 million households will get some assistance with their electricity bills, and around a million small businesses will be eligible as well, to take some of the edge off what is the key drivers of these cost of living pressures.”
Fast-Tracking Taxes on Gas Industry Profits
The government will fast-track taxes on gas industry profits to pick up revenue not due to be paid until the 2030s. The changes to the PRRT will cap deductions at 90%, generating an estimated $2.4 billion over the next four years. The PRRT generates an average of $2 billion a year and has been criticised for providing insufficient return to Australia. The peak lobby group for the industry, the Australian Petroleum Production & Exploration Association, has endorsed the PRRT changes, saying they aim to get the balance right “between the undeniable need for a strong gas sector to support reliable electricity and domestic manufacturing for decades to come and the need for a more sustainable national budget.”
Increase in Indexation for Funding for Government and Community Services
The budget will increase indexation for funding for government and community services, including mental health, disability, domestic violence, and homelessness services, the Medicare Benefits Schedule, and community nursing. Treasurer Jim Chalmers said that the $4 billion change will make it easier for people to pay their bills and pay their workers so they can continue to provide these essential services in communities under substantial pressure.
Conclusion
The Australian federal government’s $1.5 billion package to provide energy bill relief to millions of Australians, fast-tracking taxes on gas industry profits, and increasing indexation for funding for government and community services are part of a broader cost of living package in the budget that offers support to multiple age groups. The changes to the PRRT have been endorsed by the peak lobby group for the industry, while the increase in indexation for funding for government and community services aims to make it easier for service providers to pay their bills and workers to continue providing essential services in communities under substantial pressure.
Source: abc.net.au
