The hard hit rising costs of living in Australia may ease for millions as the Federal Government is set to introduce a new one-off $150 energy payment. Given to only the most vulnerable of households, the energy payment is a part of broader stimulus measures to ease the burden of living costs across the Australian nation. Alongside other measures aimed at subsidizing the cost of living, the funding has deliberately set focus on the summer months, historically known for increased energy consumption.
Who Will Be Eligible?
Eligibility has been partially widened to include only low to middle income households that placed a concession claim to Australia’s energy payment system. These group of recipients include concession card holders like pensioners, job seekers, and certain family payment receivers. The Government has defended the decision in the lack of free energy payments to Australian citizens as a means to target the most energy challenged on the lower and middle income scale.
How When and Will Payments Be Arriving?
Entitled Australian’s will not have to meet any further criteria to qualify; an automatic application has been set for the payment to be issued through No. Payments are planned to begin being paid out in September of the 2025 year, with thousands of eligible households receiving the payment straight to the account they have set with the Federal Government. Essentially, other social security payments will not be impacted, the payment is also free of any taxes, a change pensioners would greatly welcome.
Responses from Community and Industry
Consumer advocates have welcomed the aid provision, however, as a supporting measure, it is not enough to resolve core structural concerns within Australia’s energy market. “It is a step in the right direction and will assist families is managing household expenses, however, from a long term perspective, it is insufficient. It will certainly help in taking the edge off for many families that are going through a lot of stress,” the spokesperson added. “It won’t fully address the issue of long term dependable power supply and cost-effective power supply.” Support for the scheme has been welcomed by energy providers, however, and emphasized that supply-side interventions such as investments in renewables and the grid are fundamental to addressing the underlying drivers of increasing bills.
The Government’s Cost of Living Initiative
Alongside the energy relief subsidy is a host of other initiatives rolled out in 2025’s cost of living package which features increased rental assistance and expanded childcare benefits. These initiatives form part of the government’s strategy to provide relief to Australian households as inflation continues to ease. Statements by the Treasurer indicate that if the situation with household expenditure is not improved by the later part of the year, additional targeted disbursements might be in consideration.
| Category | Details |
|---|---|
| Eligible Recipients | Households and small businesses in Australia |
| Payment Amount | Up to $150 per year |
| Payment Schedule | Two quarterly payments of $75 each (most states); some may receive one lump sum |
| Application Required | Most households and businesses receive payment automatically from their energy provider |
| Eligibility Requirements | – Active electricity account on key census dates |
| – For small businesses: Active ABN, separate metered account, annual consumption limits | |
| Embedded Network | Customers in embedded networks (e.g. apartments, caravan parks) may need to apply |
| Payment Method | Credit on electricity bills or one-off rebate on invoice |
| Key Dates | Eligible accounts on 1 July 2025 and 1 October 2025 |
| Contact for Queries | Contact electricity provider or embedded network operator if payment not received |
