Anthony Albanese has come out in defense of his government’s $300 energy rebate despite experts warning the “irresponsible” move could ruin the economy.
This year’s Federal Budget, released on Tuesday night by Treasurer Jim Chalmers, promised every Australian household – no matter how much they earn – a $300 rebate to ease the pressure of rising energy bills.
Economists have warned that the cost-of-living relief measure could worsen inflation and force the Reserve Bank to keep interest rates high for longer.
But the Prime Minister dismissed concerns and insisted the rebate was “responsible relief” that would moderate inflation.
“This is an extension of a plan that has been very effective and that had the impact of moderating inflation,” Albanese told 2SM radio on Wednesday.
Anthony Albanese (pictured on budget night) has defended his government’s $300 energy rebate, saying the cost of living relief measure would moderate inflation.
“One of the main things we had to do in this budget was to provide that cost of living support…we know many Australians are feeling the squeeze, but to do it in a way that wouldn’t increase inflation.”
The relief comes on top of Stage Three tax reduction changes announced in January. The average household will receive an annual tax cut of $1,888, or $36 per week.
Albanese was also asked on Channel Seven’s Sunrise program how he expected Australians to spend the extra money without increasing inflation.
He said the government had reduced the first rate from 19 cents to 16 cents in anticipation of people earning less than $45,000 a year spending the rebates on essential items.
“You’ll spend it at the grocery store, on things your kids need,” he said.
‘That’s why We changed the tax cuts to be focused firmly on central Australia so that people in that number are cared for.
‘They Frankly, they were forgotten under the old tax cut plan. If you earned less than $45,000, you wouldn’t have received anything.’
Every household will receive the $300 payment year-round starting July 1, and one million small businesses will receive a $325 rebate over the same period.
Dr Chalmers was also forced to defend the single payment, saying it was the most efficient way to provide relief because it avoided having to create a new system.
“Once you go beyond providing this for people in terms of pensions and payments, you have to design a whole new system to create a new distinction,” he told the ABC.
‘We are providing this energy bill relief to all households. “We think it’s a good way to help make things easier.”
Dr Jim Chalmers (pictured) said the one-off $300 energy rebate was the most efficient way to provide relief because it avoided having to create a new system.
Asked why his government had not created a new system, Dr Chalmers said most of the help is provided by energy companies.
“They don’t have information about people’s income, so it would take a lot of time and spend a lot of money and effort to design a system where retailers access information about people’s income,” he explained.
“This is the best way to provide help to more people who are under pressure, and it is an efficient way to provide that assistance.”
Shadow treasurer Angus Taylor said the budget was “inflationary” because it contained structural deficits due to unavoidable spending, largely due to the National Disability Insurance Scheme.
He said the Budget had failed to address cost of living pressures, even with $300 for every household and tax cuts, caps on drug prices, elimination of $3 billion of student debt indexation and relief of rent for people receiving social assistance.
Tasmanian independent senator Jacqui Lambie criticized the Budget’s cash spending, particularly the lack of means testing for the $300 energy bill rebate.
She said: ‘I don’t feel comfortable with people like me and the super rich who got a $4,500 tax cut.
‘All you poor people, I’ll tell you what, and we’re getting the $300, not a means test?’ Are we back in the days of Covid? We’re just throwing money away, left, right and center.
Tasmanian independent senator Jacqui Lambie (pictured) criticized the budget’s cash spending
‘You’re too lazy to do some means testing. We don’t need $300. I can assure you.’
The Albanian government’s seemingly pointless splurge on energy bill relief (even for the “super rich”) has also infuriated even the most loyal Labor supporters.
‘Sorry mate. I have been a Labor voter all my life. They have lost at least one vote in the upcoming elections. Seriously, where do I start? one wrote.
‘I feel like there should be a waiver on the $300 energy rebate for anyone who has ever slept under a quilt with the air conditioning on. “We don’t deserve it,” said a second.
Labor welcomed the Budget surplus of around $9.3 billion, but that figure will be slashed to a deficit of $122 billion over four years to 2028.
