One in six Australian households is now finding it hard to pay their electricity bills, as the federal government’s energy rebates vanish. The expiration of these subsidies has left many struggling to cope with rising power costs, which were already climbing before the rebates ended. As the reality sets in, many Aussies are scrambling to adjust their budgets, and the strain is becoming increasingly difficult to ignore.
The Impact of Expired Rebates
New data from Canstar reveals that since the federal energy rebates ended, a significant portion of Australian households has seen their energy bills soar. The survey, which included 3,000 respondents, showed that 72% of households have already experienced higher costs. Nearly 20% of those surveyed are now unable to meet these increased costs without making major financial sacrifices. With inflation rising and wage growth slowing, the loss of government rebates has left many families feeling the pinch.
The Australian Bureau of Statistics (ABS) reported a sharp spike in electricity prices in January. These new, higher rates hit just as the final federal rebates were applied in late 2025, making the current bills feel like a tough blow. The government had provided $450 in rebates over the past 18 months, offering $75 every quarter. But now that the final payment has been made, millions of Australians are facing the full weight of the market’s energy costs.
Making Sacrifices to Keep the Lights On
While a quarter of surveyed households say they can still comfortably afford their power bills, nearly half are concerned about being able to pay in the future. For many, this anxiety has already translated into real sacrifices. About 12% of respondents said they’ve started cutting back on other expenses just to keep up with their electricity payments.
Sally Tindall, the director of insights at Canstar, explained that the rebates had acted as a crucial buffer for households, but now that they’ve been removed, the reality is hitting hard. “Now it’s gone, reality is starting to set in for millions of households across the country who have to face paying the full bill,” Tindall said to 9News. The cost of living continues to climb, leaving families with fewer options to manage their household budgets.
Finding Relief Amid the Strain
Despite these challenges, there are still ways for households to manage the cost of electricity. Canstar found that by switching to lower-cost energy plans, some Australians could save hundreds of dollars annually. In cities like Canberra, residents could save up to $382 in the first year by switching providers. Adelaide and Brisbane residents could save $311 and $300, respectively.
For those struggling to pay their bills, energy retailers are legally required to offer financial assistance, including payment plans and hardship programs. Various state-based programs, like the NSW Energy Accounts Payments Assistance and the Victorian Energy Assistance Program, are also available for eligible households. Additionally, the National Debt Helpline (1800 007 007) offers free advice on managing finances and negotiating payment terms.
