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In the latest Federal Budget, the Australian Government has taken a bold step in supporting households and small businesses struggling to keep up with their energy bills. The government has announced a significant energy bill relief payment through the Energy Bill Relief Fund, an initiative that aims to ease the financial burden of qualified families and businesses during these uncertain times.
Like many, you probably have a few questions. How do I get it? Is it taken off my next bill or is it paid directly to me? When is it happening? How do I know if I’m even eligible? Let’s break it down below.
How much will the Energy Bill Relief be for small businesses?
Eligible small businesses across Australia can benefit from the Australian Government's $325 bill relief, though the total amount of bill relief may vary by state and territory:
- In New South Wales, Queensland, Western Australia, South Australia, Tasmania and the Northern Territory, eligible business owners can avail co-contributions of $325, resulting in a total bill relief of $650 per customer.
- The Victorian Government opted not to match the payment, so eligible small businesses in VIC can expect relief of $325.
- The ACT Government is implementing the Large-scale Feed-in Tariff Scheme, which will reduce electricity tariffs for both households and businesses. The amount of bill relief for any business will depend on its electricity consumption but on average a business can expect relief of $624 annually, in addition to the Australian Government's $325 bill relief contribution.
What small businesses are eligible for the Energy Bill Relief?
Your business can be eligible for the Energy Bill Relief if:
- you have a business tariff.
- and its annual electricity consumption is below the energy consumption threshold specific to your state or territory.
The energy consumption threshold varies by location, as follows:
- Victoria: 40MWh
- Western Australia: 50MWh
- ACT, NSW, and Queensland: 100MWh
- Tasmania: 150MWh
- Northern Territory and South Australia: 160MWh
Your business won’t be eligible if:
- you use electricity from your home to run the business.
- your annual electricity consumption exceeds the small customer business threshold.
- you operate in embedded networks in the ACT or VIC.
When and how can small businesses expect to get the Energy Bill Relief?
For small businesses, there's nothing you need to do. If you're eligible, you'll start receiving the bill relief on your electricity bills from July 1st, 2023.
How much will the Energy Bill Relief be for households?
The amount of bill relief for households will vary across states and territories:
- Eligible households in New South Wales, Queensland, South Australia, and Tasmania can receive a total bill relief of $500.
- In Victoria, the bill relief will be $250 per household, along with a direct payment of $250 through Victoria's 2023 Power Saving Bonus Payment.
- Western Australia and the Northern Territory will provide a total bill relief of $350 per eligible household.
- Eligible households in the ACT can avail a bill relief of $175, and also benefit from the Large-scale Feed-in Tariff Scheme, which would lower the average bill by $152.
What households are eligible for the Energy Bill Relief?
To receive the household Energy Bill Relief, you:
- must be the primary electricity account holder or a named account holder on the account.
- and you need to have an eligible concession card or receive a relevant government payment in the state or territory where you reside.
Only one bill relief credit is provided per household, even if multiple eligible individuals reside in the same residence. The relief applies only to your primary place of residence.
If you are eligible but not listed on the bill and are responsible for paying for electricity, you should contact your electricity provider to update the account details so that you can receive the bill relief (this step is not necessary if you reside in Western Australia).
When and how can households expect to get the Energy Bill Relief?
For households, there's no need to take any immediate action. In most cases, your electricity provider will automatically apply bill relief to your electricity account, which will reduce your next bill. The timing and process for this may differ slightly depending on your location, as each state and territory has its own approach, but the majority of eligible households will start to get the bill relief from July 1st, 2023.
Will it really make much difference in the long run?
The Energy Bill Relief payment is great news for eligible households and small businesses across Australia. However, it is important to note that this relief may only partially cover the expected energy price increases coming on July 1st due to the DMO and VDO drafts, leaving businesses who rely heavily on electricity with unanticipated bills.
This is where Zembl's Energy Experts come in. Our team can help you make informed decisions about your energy usage and find the best energy plan suited to your unique needs. With our expert advice, you won't have to worry about unexpected energy bills or paying more than you should, just like F45 and the Australian Traffic Network.
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