Energy bill relief to end in December, government confirms

Treasurer Jim Chalmers has confirmed the federal government will not extend its electricity bill relief program into next year, ending the $75 quarterly discount for households in December.

Chalmers said the decision was "hard" but necessary due to budget pressures, noting the subsidy was always intended to be temporary. The scheme began in mid-2023, was extended twice, and was supported by additional state and territory rebates. Some small businesses also qualified.

The Treasurer said the government is shifting from "temporary help" to longer-term measures such as tax cuts, which he says will deliver about $50 a week to the average taxpayer.

The announcement comes as the Reserve Bank meets for its final 2025 session, with rates expected to hold. Underlying inflation has stalled at 3.3 per cent, above the RBA's target. The end of state and federal subsidies is expected to push headline inflation higher in coming months-an impact the RBA has signalled it will "look through".

The mid-year budget update next week will include further savings and difficult decisions, Chalmers said.