Budget promises price relief – but no cash handouts?
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Things have been pretty tough lately, and everyone is doing everything they can to keep their heads above water. The rising cost of living is putting a lot of pressure on families, and we all need a bit of a break.
The good news is that relief for rising power bills is on the way. The bad news is that it's unlikely to come in the form of cash handouts.
Federal treasurer Jim Chalmers said the government's upcoming budget would bring relief for rising power bills. However, he downplayed expectations that cash handouts would be available for people across Australia.
Last December, the states and Commonwealth struck a deal to rebadge the $1.5 billion economic security package, which will now be the ‘centrepiece’ of the upcoming budget. Treasurer Jim Chalmers described it as a part of the answer to Australians’ cost of living concerns.
‘We know that is a big part of the cost-of-living pressure that people are confronting right now. We'll try and take the edge off that where we can, but we’ve got to do it in a responsible way,’ he shared with reporters.
Mr Chalmers also added that they are going through the issues in a ‘methodical way’ so that the budget can meet all of the demands.
The price relief will be applied directly to power bills as credits instead of cash handouts. This will be available to people who are on income support, or pensions, recipients of the family tax benefit, and to small businesses.
However, those who were hoping for further handouts could be left disappointed as Mr Chalmers emphasised there will be spending cuts in the upcoming budget.
He said: ‘We have indicated that we will be trimming spending further in the May budget, but that's so that we can make room to fund the things that we value, whether it’s health care or aged care, the NDIS, protecting our borders and our national security.’
The budget plan – which included a price cap on gas and coal prices – was announced late last year. It was aimed at bringing down the skyrocketing energy prices.
‘Our plan is designed to take some of the edge off these energy price rises, and we're really encouraged to see that's the case,’ Mr Chalmers told reporters at the time.
According to market analysis research, big electricity price increases expected in 2023 dropped ‘significantly’ since the federal government revealed its market intervention plans.
It also showed a wholesale price drop of 41 per cent in NSW, 46 per cent in Queensland, 34 per cent in Victoria, and 48 per cent in South Australia in early February compared to November of last year – before the price caps were announced.
But with the financial pressure that many across the country are facing, it’s become increasingly difficult to keep up with energy costs. In one instance, a third-generation family business is about to face a $900,000 power bill increase.
Nippy’s, a family business with three different manufacturing sites in South Australia, is currently paying $916,000 a year on their current three-year electricity plan. But their latest quote revealed a staggering $1.7 million per year electricity contract – a 95 per cent increase from their current quote. Now, aside from the burden of having to find an extra $900,000 to pay for electricity, the business is also worried about passing on the costs to customers to stay afloat.
You can read more about this story here.
Mr Chalmers is set to travel to the U.S. this week to attend a series of meetings with global financial leaders, including U.S. Treasury Secretary Janet Yellen, to discuss various international outlooks.
The Treasurer will be accompanied by Reserve Bank governor Philip Lowe and Treasury Secretary Steven Kennedy. All three will head to Washington D.C. for the G20 finance ministers and central bank governors’ meeting.
The Federal Treasurer flagged the trip as a crucial meeting that will help shape the May 9 budget.
‘This is a challenging and complex time for the global economy. One of the defining influences on the budget that I hand down in May will be this global economic uncertainty. So, this quick brief visit to confer with my counterparts couldn’t be better timed,’ he said.
What are your thoughts on the government’s plan? Let us know in the comments below!
The good news is that relief for rising power bills is on the way. The bad news is that it's unlikely to come in the form of cash handouts.
Federal treasurer Jim Chalmers said the government's upcoming budget would bring relief for rising power bills. However, he downplayed expectations that cash handouts would be available for people across Australia.
Last December, the states and Commonwealth struck a deal to rebadge the $1.5 billion economic security package, which will now be the ‘centrepiece’ of the upcoming budget. Treasurer Jim Chalmers described it as a part of the answer to Australians’ cost of living concerns.
‘We know that is a big part of the cost-of-living pressure that people are confronting right now. We'll try and take the edge off that where we can, but we’ve got to do it in a responsible way,’ he shared with reporters.
Mr Chalmers also added that they are going through the issues in a ‘methodical way’ so that the budget can meet all of the demands.
Mr Chalmers said relief for rising energy bills would be a key feature in the upcoming budget. Credit: Rodolfo Clix/Pexels
The price relief will be applied directly to power bills as credits instead of cash handouts. This will be available to people who are on income support, or pensions, recipients of the family tax benefit, and to small businesses.
However, those who were hoping for further handouts could be left disappointed as Mr Chalmers emphasised there will be spending cuts in the upcoming budget.
He said: ‘We have indicated that we will be trimming spending further in the May budget, but that's so that we can make room to fund the things that we value, whether it’s health care or aged care, the NDIS, protecting our borders and our national security.’
The budget plan – which included a price cap on gas and coal prices – was announced late last year. It was aimed at bringing down the skyrocketing energy prices.
‘Our plan is designed to take some of the edge off these energy price rises, and we're really encouraged to see that's the case,’ Mr Chalmers told reporters at the time.
According to market analysis research, big electricity price increases expected in 2023 dropped ‘significantly’ since the federal government revealed its market intervention plans.
It also showed a wholesale price drop of 41 per cent in NSW, 46 per cent in Queensland, 34 per cent in Victoria, and 48 per cent in South Australia in early February compared to November of last year – before the price caps were announced.
According to previous reports, a $1.5bn package to help with energy prices. Credit: Oronzo Roberti/Pexels
But with the financial pressure that many across the country are facing, it’s become increasingly difficult to keep up with energy costs. In one instance, a third-generation family business is about to face a $900,000 power bill increase.
Nippy’s, a family business with three different manufacturing sites in South Australia, is currently paying $916,000 a year on their current three-year electricity plan. But their latest quote revealed a staggering $1.7 million per year electricity contract – a 95 per cent increase from their current quote. Now, aside from the burden of having to find an extra $900,000 to pay for electricity, the business is also worried about passing on the costs to customers to stay afloat.
You can read more about this story here.
Mr Chalmers is set to travel to the U.S. this week to attend a series of meetings with global financial leaders, including U.S. Treasury Secretary Janet Yellen, to discuss various international outlooks.
The Treasurer will be accompanied by Reserve Bank governor Philip Lowe and Treasury Secretary Steven Kennedy. All three will head to Washington D.C. for the G20 finance ministers and central bank governors’ meeting.
The Federal Treasurer flagged the trip as a crucial meeting that will help shape the May 9 budget.
‘This is a challenging and complex time for the global economy. One of the defining influences on the budget that I hand down in May will be this global economic uncertainty. So, this quick brief visit to confer with my counterparts couldn’t be better timed,’ he said.
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