Australia’s universal energy bill relief, which provided up to $450 in credits to households over the past two financial years, officially ended on 31 December 2025. This means that from January 2026, the automatic federal credits that softened the impact of rising electricity costs are no longer appearing on your bills. For many households, this translates to an effective increase of hundreds of dollars annually, as underlying energy prices now reflect the full retail cost without government buffering.
The federal government’s Energy Bill Relief Fund provided households with up to $300 in the 2024-25 financial year, followed by an additional $150 (delivered as two $75 quarterly instalments) in the first half of the 2025-26 financial year. While this program has concluded without a universal replacement, it’s crucial to understand that targeted state and territory concessions remain active for eligible households, and new Default Market Offer (DMO) and Victorian Default Offer (VDO) prices for 2026-27 have recently come into effect.
The New Energy Price Landscape for 2026
Electricity and gas prices in Australia are influenced by a complex mix of wholesale costs, network charges, environmental schemes, and retailer competition. While the universal relief has ceased, the Australian Energy Regulator (AER) and the Essential Services Commission (ESC) have set new benchmark prices for the 2026-27 financial year, effective from 1 July 2026 (or 1 August 2026 in Victoria for some aspects).
Many regions are seeing reductions in benchmark electricity prices, but South Australia stands out as an exception for flat-rate residential customers.
“Electricity prices will fall for most households and small businesses on the Default Market Offer (DMO) from 1 July, with the AER today releasing its final prices for 2026-27.”
Default Market Offer (DMO) & Victorian Default Offer (VDO) Changes (2026-27)
The DMO applies to New South Wales, South East Queensland, and South Australia, while Victoria has its own VDO. These are price caps for standing offers and serve as a reference for market offers.
| State/Region | Tariff Type | Annual Change (from July 1, 2026) | Annual Impact (Residential) |
|---|---|---|---|
| New South Wales | Flat Rate | -3.4% to -5.0% | Savings of $66 to $137 |
| Time-of-Use (TOU) | -3.7% to -7.7% | Savings of $72 to $211 | |
| South East QLD | Flat Rate | -7.2% | Savings of $155 |
| (Energex zone) | Time-of-Use (TOU) | -10.7% | Savings of $229 |
| South Australia | Flat Rate | +1.4% | Increase of $33 |
| Time-of-Use (TOU) | -1.1% | Savings of $25 | |
| Victoria | Average (VDO) | -5.0% | Savings of ~$84 |
| Residential | -3.2% to -8.4% | Annual costs $1,481-$1,748 | |
| Regional QLD | Tariff 11 (QCA) | -9.7% | Savings of ~$212 |
Average residential electricity usage rates are approximately 28.5c/kWh in NSW (plus 105c/day supply charge), while South Australia continues to have some of the highest costs, with a typical flat-rate household paying around $2,334 annually ($584 per quarter) under the DMO 8.
Gas Prices in 2026
Natural gas prices remain elevated compared to pre-2022 levels, though they are stabilising. Average annual gas bills vary by state and usage, with general estimates for 2026 as follows:
| State | Average Annual Gas Bill (2026) | Average Usage Rate (c/MJ) | Supply Charge ($/day) |
|---|---|---|---|
| Queensland | ~$1,090 | 2.45c | $0.80 |
| Victoria | ~$1,240 | 2.58c | $0.84 |
| New South Wales | ~$1,320 | 2.72c | $0.88 |
| South Australia | ~$1,480 | 3.05c | $0.96 |
Monthly gas bills for average family homes using gas for hot water, cooking, and winter heating can range from $80 to $150 across the year, with higher spikes in colder months.
What You Can Do to Reduce Your Bills in 2026
With universal relief gone, proactive measures are key to managing your household energy costs.
1. Compare and Switch Energy Retailers
The DMO and VDO are safety nets, not the cheapest rates. Market offers from retailers can be up to 20% below the DMO. Many Australians remain on standing offers and could save hundreds by comparing plans.
- Review your current plan: Check your latest bill for usage rates, supply charges, and any benefit period expiry dates.
- Use comparison websites: Government-backed sites like Energy Made Easy (for NSW, QLD, SA, ACT, TAS) and Victorian Energy Compare (for VIC) allow you to compare offers using your actual consumption data.
- Look for conditional discounts: Be aware of pay-on-time discounts, direct debit requirements, or bundle deals that might offer savings. Consider Energy Plans No Lock-In Contracts Australia 2026: Complete Guide for flexibility.
2. Leverage State & Federal Rebates (Targeted)
While universal federal relief has ended, numerous targeted state and federal rebates remain available for eligible households, particularly those with concession cards or for specific energy-efficient upgrades.
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State Concessions: If you hold a Pensioner Concession Card, Health Care Card, or Department of Veterans’ Affairs Gold Card, check your state government’s energy department website. For example:
- NSW: Low Income Household Rebate ($285/year), Gas Rebate ($110/year), Family Energy Rebate ($180/year).
- VIC: Annual Electricity Concession ($319.20/year), Annual Gas Concession ($212.80/year).
- QLD: Electricity Rebate ($372.05/year).
- SA: Cost of Living Concession ($243.60/year).
- ACT: Electricity, Gas and Water Rebate ($800/year for 2025-26).
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Federal Solar Panel Rebate (STCs): The Small-scale Renewable Energy Scheme (SRES) provides an upfront discount on solar panel installations. For a 6.6kW system, this can be approximately $1,500 - $2,000, depending on your location. Note that the rebate value reduced slightly on January 1, 2026.
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Federal Home Battery Rebate (Cheaper Home Batteries Program): Launched in July 2025, this program offers an upfront discount of roughly $252 per usable kWh for eligible home battery systems (5-100kWh). A standard 14 kWh battery could see an estimated $3,528 discount. This rebate is stackable with some state incentives, such as those in NSW and WA. For more details, see Australia’s Energy Bill Relief Fund 2026: Your Guide to Current Support and Savings.
3. Invest in Energy Efficiency and Solar/Batteries
Long-term savings come from reducing your energy consumption and generating your own power.
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Energy-Efficient Upgrades: Look into insulation, draught-proofing, upgrading to energy-efficient appliances (e.g., heat pump hot water systems), and LED lighting. Victoria’s VEU program offers point-of-sale discounts on many of these. Explore Australia’s Top Energy-Efficient Home Upgrades 2026: Maximise ROI as Electricity Bills Soar This Winter.
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Solar Power: Installing solar panels can significantly reduce your reliance on grid electricity. A 6.6kW solar system, after federal STC rebates, typically costs between $5,500 to $8,000 in 2026. Consider if it’s right for your home with our guide on Best Solar Panels in Australia 2026: Performance, Warranties & Value for $5,500+.
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Home Batteries: Pairing solar with a home battery allows you to store excess daytime solar generation for use during peak evening hours, maximising self-consumption and reducing grid reliance. With the federal battery rebate, a 10 kWh battery, which typically costs around $11,120, could be reduced to approximately $8,010. Many states also offer battery incentives, such as interest-free loans in Victoria (up to $1,400 for solar panels, with an income cap of $150,000 from July 1, 2026) or VPP incentives in NSW. Learn more at Is a Home Battery Retrofit Worth It in Australia 2026? Costs, Rebates & 3-4 Year Paybacks.
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Virtual Power Plants (VPPs): If you have a home battery, joining a VPP can earn you credits for allowing your battery to support the grid during peak demand. This can provide additional annual savings. Check out Join a VPP in 2026: Earn Up To $1,500 Annually & Boost Grid Stability.
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Home Energy Management Systems: These systems can help you monitor and optimise your energy usage, identifying areas for savings. See Best Home Energy Monitoring Systems in Australia 2026: Unlock $1,000+ Annual Savings.
Bottom Line
The end of Australia’s universal energy bill relief means households must now actively manage their energy consumption and plans to avoid higher bills. While the automatic federal credits are gone, new DMO/VDO prices for 2026-27 indicate varied changes across states, with some seeing reductions and South Australia experiencing a slight increase for flat-rate residential customers. The most effective strategy involves comparing electricity and gas plans regularly to ensure you’re on a competitive market offer, alongside investing in energy-efficient upgrades and exploring federal and state rebates for solar and battery storage. These proactive steps can help mitigate the impact of the ended relief and lead to significant long-term savings on your household energy costs in 2026 and beyond.