Australians call for energy rebate extensions as debt, hardships increase
04 Dec 2025
The majority of Australians think the federal electricity rebates should be extended, according to new Canstar research, including 32% who want them only to go to lower-income households.
The federal energy rebates, which totalled $450 over the last year-and-a-half, deposited directly into customers’ electricity accounts, completed the final payment to eligible households in October.
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| Do you think the federal government’s relief rebate program should be extended? | |
|---|---|
| Yes, it should be extended to all households | 48% |
| Yes, but targeted at lower-income households | 32% |
| No | 20% |
Source: Canstar. Survey of 2,007 respondents.
Proportion of people behind on their electricity bills rises despite rebate relief
Data from the Australian Energy Regulator, released on Monday, shows the proportion of people behind on their bills has risen to 3.1% in the June quarter of 2025, up from 2.9% in the same quarter last year.
Of those behind on their bills, the average debt has risen by 19% over the past year to $1,367.
Across the states and territories within the regulator’s jurisdiction, Queensland recorded the largest annual increase in average debt, rising 51% to $1,321.
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| Average debt of those behind on their electricity bill | |||
|---|---|---|---|
| State | Apr-Jun 2024 | Apr-Jun 2025 | Change |
| NSW | $1,231 | $1,402 | +$171
+14% |
| QLD | $877 | $1,321 | +$444
+51% |
| SA | $1,522 | $1,754 | +$232
+15% |
| ACT | $792 | $873 | +$81
+10% |
| TAS | $750 | $698 | -$52
-7% |
| ALL | $1,148 | $1,367 | +$219
+19% |
Source: AER. Prepared by Canstar.com.au. Excludes debt of customers on hardship programs. Note: only includes jurisdictions that have adopted the National Energy Customer Framework (NECF)
Switching can help households save
While households aren’t guaranteed a rebate extension, they can find relief by taking matters into their own hands and securing a better offer. Canstar research shows that moving from the average cost plan to the lowest cost plan could save up to $390 per year.
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| Potential savings switching from average cost to lowest cost electricity plan | |||
|---|---|---|---|
| City | Average cost | Lowest cost | Potential savings |
| Sydney | $1,795 | $1,490 | $305 |
| Melbourne | $1,450 | $1,199 | $251 |
| Brisbane | $2,032 | $1,681 | $351 |
| Adelaide | $2,182 | $1,909 | $273 |
| Canberra | $2,382 | $1,992 | $390 |
| Hobart | $1,338 | $1,229 | $109 |
Source: Canstar – 3/12/2025. Based on single rate electricity plans on Canstar’s database; excluding solar-only plans. One product shown per distribution network. Annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage from the AER and ESC and the median usage in the Office of the Tasmania Regulator’s report.
Canstar’s data insights director, Sally Tindall, says, “The cost of electricity has been on a relentless climb over the last few years, and while the rebates have masked much of the price-hike pain, if the government doesn’t extend it, households will be back to paying full freight next year.
“What’s hugely concerning is that the proportion of people behind on their electricity bill is on the rise despite government relief.
“In Queensland, the state government’s $1,000 rebate issued in the middle of last year helped keep a lid on debt, with the average clocking in at $877 in 2024. Now that relief is a distant memory, the average electricity debt in Queensland has skyrocketed by over 50 per cent to $1,321 in 2025.
“If you’re struggling to keep up with your bills, know you can get help.
“First up, see if you can switch to a cheaper plan. Canstar data shows that a typical household in Sydney could save up to $305 over the course of the next year just by switching from an average-priced plan to the cheapest. In Brisbane, the potential savings are even higher for an average household of up to $351.
“However, if this is too little too late, know there are hardship options available. Data from the Australian Energy Regulator has found that one-third of people in debt were not on a payment plan or a hardship program from their provider.
“If you think you’re at risk of missing your next bill, ring your electricity provider, tell them you are struggling to pay the bill and ask what your options might be. If you need hardship support, make sure you very specifically use this word. Your retailer is legally obliged to help you.
“If you need further help, the National Debt Helpline is another invaluable resource which can put you in touch with a financial counsellor, free of charge, to help you navigate, not just the electricity bill, but all other bills piling up in the background.”
This article was reviewed by our Consumer Editor Meagan Lawrence before it was updated, as part of our fact-checking process.
