Australian households and businesses navigating persistently high energy costs in 2026 are keenly seeking clarity on government assistance. The federal “Energy Bills Relief Act,” which provided direct, universal bill relief in previous periods, has largely concluded its broad-based payments. As of 1 January 2026, the universal federal energy bill credits are no longer automatically applied to electricity accounts. While a final $150 (delivered in two $75 instalments) was provided for the first half of the 2025-26 financial year, applied by 1 October 2025, no new universal federal energy rebate is confirmed for the 2026 calendar year for standard households. The focus has now decisively shifted towards targeted state and territory concessions, alongside enduring federal incentives for energy efficiency upgrades.
This guide outlines the current landscape of energy bill relief in Australia for 2026 and, crucially, empowers you with strategies to proactively reduce your energy consumption and costs, moving beyond temporary government assistance.
The End of Universal Federal Relief
The National Energy Bill Relief Fund offered substantial temporary support, providing a total of $300 to households in the 2024-25 financial year, followed by an additional $150 ($75 instalments) for the first half of the 2025-26 financial year. However, this program concluded its universal payments on 31 December 2025. This means that for the remainder of the 2026 calendar year, most Australian households will not see automatic federal credits on their electricity bills. This shift underscores the need for consumers to actively seek out alternative support and implement long-term energy-saving measures.
State and Territory Concessions in 2026
While federal universal relief has wound down, all Australian states and territories continue to offer a range of targeted concessions and rebates for eligible households, typically those holding valid concession cards or receiving specific Centrelink payments. Eligibility criteria and amounts vary significantly by state:
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Victoria: Eligible concession card holders can access a 17.5% Annual Electricity Concession on usage and service costs (not applied to the first $171.60 of the annual bill). An Excess Electricity Concession offers a 17.5% discount once annual costs exceed $3,895.13. During winter (1 May to 31 October), a 17.5% Winter Gas Concession is available (not applied to the first $62.40 of bills). Additional support includes Medical Cooling or Heating Concessions, Life Support Concessions, and the Utility Relief Grant Scheme, offering up to $650 per utility every two years for those in temporary financial hardship. The $100 Power Saving Bonus for concession card households closed applications on 31 March 2026.
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New South Wales (NSW): The Low Income Household Rebate provides up to $285 per year off electricity bills for eligible concession card holders. The Family Energy Rebate offers $180 for non-concession card holders and $20 for concession card holders, with applications for the 2025/2026 financial year currently open. NSW also participates in federal solar and battery incentives and has schemes like the Energy Savings Scheme (ESS) for energy efficiency retrofits.
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Queensland (QLD): While specific general state-wide bill relief amounts for 2026 were not broadly published in our search, Queensland residents would have received the federal $150 credit for the 2025-26 financial year. Average annual electricity bills in Queensland are estimated at $1,420, with quarterly bills around $456.
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South Australia (SA): The Energy Bill Concession offers up to $281.78 per year, indexed annually. The Medical Heating and Cooling Concession supports eligible low-income households with specific medical needs. A significant South Australian Concessions Energy Discount Offer (SACEDO) with Origin Energy provides eligible concession card holders with 20% off electricity usage and supply, 15% off gas usage and supply, and 40% off a 45kg LPG cylinder for 12 months, running until at least 2029. The Retailer Energy Productivity Scheme (REPS) also offers free or discounted upgrades for eligible households.
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Tasmania (TAS): Tasmania offers an Annual Electricity Concession of approximately $513.70 per year (or $1.76866 per day for retail customers from 1 July 2025) for eligible concession card holders. An additional Heating Allowance of $56 per year is available for pensioner concession card holders. Medical Cooling or Heating Concessions also apply.
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Northern Territory (NT): Members of the NT Concession Scheme can receive up to $1,200 per year in electricity concessions, covering up to 8,000 kWh. The NT Home and Business Battery Scheme is currently closed to new grants.
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Australian Capital Territory (ACT): The Sustainable Household Scheme provides low-interest loans up to $15,000 for various energy-efficient upgrades, including EV chargers, induction cooktops, and insulation.
To ascertain your eligibility and apply for these state-specific programs, it is essential to contact your energy retailer or visit your state government’s energy or human services department website.
Proactive Strategies to Combat High Energy Bills
With the cessation of universal federal relief, the most effective long-term strategy for managing energy costs in Australia is proactive energy management and investment in efficiency. Our research indicates average annual electricity bills across Australia range from $1,310 in the ACT to $1,580 in South Australia.
“South Australia remains Australia’s most expensive state for electricity, averaging $1,580/yr — $270 more than the cheapest state (ACT).”
Here are key areas where you can make a significant difference:
1. Invest in Solar PV and Battery Storage
Solar power remains a potent defence against rising electricity prices. A typical 6.6kW solar system in 2026 costs between $5,000 and $6,000 in most Australian states after federal Small-scale Technology Certificates (STCs) are applied. While the STC deeming period reduced from 6 to 5 years on 1 January 2026, leading to a 15-20% reduction in the upfront discount, solar still offers substantial long-term savings.
Adding home battery storage can further maximise your self-consumption of solar energy and reduce reliance on the grid during peak times. The federal Cheaper Home Batteries Program offers an upfront discount on eligible systems, though the rebate structure shifted to a tiered model with reduced values from 1 May 2026. A 10 kWh battery system typically costs between $8,000 and $10,000 installed, including the federal rebate. Home batteries can lead to annual savings of $1,200 to $2,000, with a payback period of 5-8 years with incentives.
For more detailed guidance, see our articles on How to Choose a Solar Installer in Australia 2026: Accreditation, Warranties & Avoiding Scams and Best Solar Panel & Home Battery Financing Options in Australia 2026: Loans, PPAs & Green Mortgages Explained.
2. Upgrade to Energy-Efficient Hot Water Systems
Traditional electric storage hot water systems are significant energy consumers. Upgrading to a heat pump hot water system can drastically cut your running costs by up to two-thirds. A heat pump system costs, on average, $4,527 nationally installed in April 2026 (including federal STCs). State-specific rebates can further reduce this. For instance, in Victoria or NSW, the out-of-pocket expense can drop to between $2,667 and $4,073, depending on the system being replaced. Running costs for a heat pump are typically $150 to $300 per year.
| System Type | Typical Installed Cost (2026) | Annual Running Cost (Est.) | Key Benefit |
|---|---|---|---|
| Electric Storage | $1,000 – $2,800 | $450 – $900+ | Lowest upfront cost |
| Gas Storage | $1,800 – $3,200 | $300 – $700 | Faster heating, existing gas connection |
| Heat Pump | $2,500 – $5,000 (after rebates) | $150 – $300 | High efficiency, lowest running costs |
| Solar Hot Water | $3,000 – $6,000 (after rebates) | Minimal | Maximum energy savings, suitable roof |
For comprehensive details, refer to our guide on Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide.
3. Improve Home Insulation and Draught Proofing
Effective insulation in ceilings, walls, and floors, coupled with diligent draught proofing, can dramatically reduce heating and cooling loads. These are often eligible for state-based energy efficiency schemes, such as the NSW Energy Savings Scheme (ESS) or South Australia’s REPS, which provide discounts on retrofits. Simple measures like sealing gaps around windows and doors can save hundreds of dollars annually.
4. Smart Energy Management and Appliance Efficiency
Review your energy usage habits. Heating and cooling can account for around 40% of a household’s electricity usage. Ensure your heating and cooling systems are efficient. If replacing, consider a high-efficiency reverse-cycle air conditioner, which can attract rebates in NSW (ESS rebates reducing costs by $200–$1,200). Using smart power strips, optimising appliance use, and switching to LED lighting are low-cost ways to reduce consumption.
Comparing electricity plans regularly is also crucial. The average electricity bill can vary significantly by retailer and plan. For example, in Brisbane, market offers are typically 18–27% lower than the Default Market Offer (DMO) reference price.
For more strategies, read our guide on Australia’s Top Energy-Efficient Home Upgrades 2026: Maximise ROI as Electricity Bills Soar This Winter.
Bottom Line
The era of universal federal energy bill relief has largely concluded for Australian households in 2026. While targeted state and territory concessions remain a vital safety net for eligible individuals, a proactive approach to energy management is now paramount. To effectively combat rising energy costs, Australians must focus on long-term investments in energy efficiency, such as solar PV, home battery storage, and heat pump hot water systems, coupled with smart consumption habits. Regularly comparing energy plans and leveraging available state-based efficiency incentives will provide the most significant and sustained savings.