For many Australians, the phrase “Energy Bills Relief Act” conjures images of direct, substantial financial assistance from the federal government. While the initial, broad-based relief provided under the Energy Bill Relief Fund (which was part of the broader Energy Bills Relief Act 2023) significantly eased pressures in the 2023-24 financial year, the landscape for 2026 has shifted. The substantial $500 federal bill credit for households and $650 for small businesses from the initial phase has largely concluded. Instead, the focus has moved towards targeted state-based concessions, a more modest federal extension, and crucial long-term energy efficiency investments.
This guide explains the current reality of energy bill relief in Australia for 2026, outlining what support is still available and, more importantly, how households can proactively take control of their energy costs as the initial federal measures sunset.
What Was the Energy Bills Relief Act?
The Energy Bills Relief Act 2023 was a federal initiative designed to cushion Australian households and small businesses from significant energy price rises. Through the Energy Bill Relief Fund, it provided direct bill credits in the 2023-24 financial year. Eligible households received up to $500, while eligible small businesses received up to $650. This was a temporary, emergency measure to combat the immediate cost-of-living crisis driven by surging wholesale energy prices.
As of 2026, the direct, large-scale payments from the original Act have largely been phased out. However, a more modest extension of the Energy Bill Relief Fund is providing support for the 2025-26 financial year. All Australian households and eligible small businesses are set to receive two credits of $75 (totalling $150) on their electricity bills between July and December 2025. This credit is applied automatically by retailers; no application is generally required for standard retail customers.
The 2026 Reality: Targeted Support and Future Outlook
While the broad federal relief has concluded, state and territory governments continue to offer a range of energy concessions and rebates. These are typically means-tested or targeted at specific cohorts, such as pensioners, concession card holders, or those with medical needs. Furthermore, the Australian Energy Regulator (AER) has indicated a potential for electricity bill reductions from July 1, 2026, for customers on Default Market Offer (DMO) contracts in NSW, SA, and South-East Queensland, driven by moderating wholesale costs.
The Australian Energy Market Operator (AEMO)‘s Q1 2026 report highlighted a 12% year-on-year fall in average wholesale electricity prices across the National Electricity Market (NEM), settling at AUD $73 per megawatt-hour (MWh), largely due to increased renewable generation.
This means that while the direct federal cash injections are winding down, the underlying market conditions are showing signs of improvement, and ongoing state-based support remains vital.
State-by-State Energy Concessions for 2026
Eligibility for these concessions typically requires holding a valid concession card (e.g., Pensioner Concession Card, Health Care Card, DVA Gold Card) and the energy account being in the cardholder’s name at their principal place of residence.
| State/Territory | Key Concessions (2026) | Amount & Details |
|---|---|---|
| New South Wales (NSW) | Low Income Household Rebate | Up to $285/year (retail customers) or $313.50/year (embedded networks). |
| Seniors Energy Rebate | $200/financial year for Commonwealth Seniors Health Card holders. | |
| Medical Energy Rebate, Life Support Rebate, Gas Rebate | Specific to medical needs and gas accounts (up to $110/year). | |
| Victoria (VIC) | Annual Electricity Concession | 17.5% off electricity usage & service costs (after first $171.60/year). |
| Winter Gas Concession | 17.5% off gas charges (May 1 - Oct 31, after first $62.40/period). | |
| Excess Electricity/Gas Concessions | 17.5% off charges above annual/winter limits. | |
| Utility Relief Grant Scheme (URGS) | Up to $650 per utility every two years for hardship. | |
| Queensland (QLD) | Electricity Rebate | $386.34/year for eligible cardholders. |
| Home Energy Emergency Assistance Scheme (HEEAS) | Up to $720 every two years for short-term financial hardship. | |
| South Australia (SA) | Energy Concession | Daily flat rate credited to electricity bills. |
| SA Concessions Energy Discount Offer (SACEDO) | 20% off electricity, 15% off gas usage/supply with Origin Energy for eligible customers. | |
| Medical Heating and Cooling Concession | For specific medical conditions. | |
| Retailer Energy Productivity Scheme (REPS) | Free/discounted energy upgrades for households, especially priority groups. | |
| Western Australia (WA) | Cost of Living Rebate (CoLR) | $104.90 for WA Seniors Card holders (2025). |
| Tasmania (TAS) | Annual Electricity Concession | Approx. $1.76866/day (approx. $645.56/year). |
| Medical Cooling or Heating Concession | Approx. $0.52975/day (approx. $193.36/year). | |
| Life Support Concession | Daily discounts based on approved equipment. | |
| Australian Capital Territory (ACT) | Utilities Concession | Up to $750/year (2025-26) for eligible concession card holders. |
| Northern Territory (NT) | NT Concession Scheme – Electricity | Up to $1,200/year (capped at 8,000 kWh). |
| Medical Support Allowance | $154 allowance if exceeding cap due to medical criteria. |
Note: Concession amounts and eligibility criteria are subject to change. Always verify the latest information with your state/territory government or energy retailer.
Beyond Rebates: Long-Term Strategies to Reduce Bills
With the initial federal relief largely in the past, the most effective long-term strategy for Australians is to invest in energy efficiency and renewable energy. These measures offer sustained savings, rather than one-off credits.
1. Solar PV Systems
Installing rooftop solar remains one of the best investments for reducing electricity bills. The federal Small-scale Renewable Energy Scheme (SRES) provides Small-scale Technology Certificates (STCs), which act as an upfront discount on installation costs. In 2026, a standard 6.6kW solar system typically costs between $5,000 and $6,500 after the federal STC rebate.
Some states offer additional incentives:
- Victoria: The Solar Homes Program offers an additional rebate of up to $1,400 for eligible households installing solar PV, plus interest-free loans.
- Queensland: The Solar for Renters rebate offers landlords up to $3,500 for installing solar on rental properties.
For a deeper dive into choosing a solar system, refer to our guide: How to Choose a Solar Installer in Australia 2026: Accreditation, Warranties & Avoiding Scams.
2. Home Battery Storage
Pairing solar with a home battery allows you to store excess daytime solar generation for use at night, further reducing reliance on grid electricity and protecting against blackouts. The federal Cheaper Home Batteries Program offers rebates, though the structure is changing from May 1, 2026, to a tiered system favouring smaller batteries.
- Average 10kWh battery system (installed, after federal rebate): Approximately $8,000 - $10,000.
- Average 20kWh system (installed, after federal rebate): Approximately $14,700.
From May 1, 2026, the federal rebate for the first 14kWh of usable capacity is estimated to be around $252 per kWh, reducing for larger capacities.
For more information on financing, see: Best Solar Panel & Home Battery Financing Options in Australia 2026: Loans, PPAs & Green Mortgages Explained.
3. Energy-Efficient Hot Water Systems
Hot water accounts for a significant portion of household energy use. Upgrading to a heat pump hot water system can drastically cut running costs.
- Average Heat Pump Hot Water System Cost (installed, after federal STCs): Approximately $4,527 nationally. This can drop to $2,667 - $4,073 in states like Victoria and NSW with additional state rebates.
- Running Costs: Heat pumps cost approximately $150 - $300 per year to run, about one-third of a traditional electric storage tank.
Leading brands include Reclaim Energy and Sanden, with hardware costs for larger tanks ranging from $2,500 to $6,000 before installation and rebates.
For a detailed guide, read: Best Heat Pump Hot Water Systems in Australia 2026: Costs, Rebates & Buyer’s Guide.
4. General Energy Efficiency Upgrades
Simple measures can yield significant savings:
- Insulation and Draught Proofing: Prevents heat loss in winter and heat gain in summer. Many states offer rebates for insulation under energy upgrade schemes (e.g., Victorian Energy Upgrades, SA REPS).
- Efficient Appliances: Look for high-star ratings. Replacing an old fridge or washing machine can save hundreds annually.
- Smart Energy Management: Utilise smart thermostats, timers, and energy monitoring systems to optimise usage, especially with time-of-use tariffs.
Current Electricity Prices (2026)
Average electricity prices continue to vary across Australia. Here’s a snapshot of average usage rates and estimated annual bills for residential customers in 2026, assuming average household usage of ~4,900 kWh/year.
| State/Territory | Average Rate (c/kWh) | Estimated Annual Bill |
|---|---|---|
| South Australia (SA) | 32.1c | $1,580 |
| Western Australia (WA) | 28.9c | $1,490 |
| New South Wales (NSW) | 28.5c | $1,450 |
| Queensland (QLD) | 27.2c | $1,420 |
| Victoria (VIC) | 26.8c | $1,380 |
| Tasmania (TAS) | 26.2c | $1,340 |
| Australian Capital Territory (ACT) | 25.8c | $1,310 |
Source: EnergyPlans research, 1 April 2026. These are averages; actual rates depend on retailer and plan.
It’s crucial to actively compare electricity plans using government comparison websites like Energy Made Easy to ensure you’re on the most competitive market offer, as these are often cheaper than the Default Market Offer (DMO).
Bottom Line
The era of broad, substantial federal energy bill relief from the initial Energy Bills Relief Act has largely passed. While a modest $150 federal credit is available for 2025-26, and some states offer significant concessions for eligible households, the long-term solution to high energy bills lies in proactive energy management and investment. Australians should leverage ongoing state-based rebates for energy-efficient upgrades like solar PV, home batteries, and heat pump hot water systems. Regularly comparing electricity plans and adopting energy-saving habits will provide the most sustainable relief against rising energy costs in 2026 and beyond.