The coal-royalty funded handout comes less than 6 months before the Queensland state election.
Queensland Labor Premier Steven Miles has announced a $1,000 (US$652) rebate for energy bills less than six months out from the state election.
In addition, the government recently legislated a 75 percent emissions reduction target by 2035, a move that sparked concerns about power bills.
The handout will cost about $2.5 billion (US$1.6 billion) to the Queensland budget, which the government said will be funded from coal royalties.
Every household in the Sunshine state will receive a $1,000 rebate on their electricity bills from July 2024.
The Queensland government acknowledged households are struggling with mortgage repayments, rent, groceries and fuel, and are handing out the money to try and curb the pain.
In a post to X, Premier Steven Miles said the government could make the move because they make multinational coal companies pay their share of tax.
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However, Adept Economics principal Gene Tunny labelled the move a “vote-buying exercise” that government cannot afford, in quotes cited by the Courier Mail.
“Taxpayers will bear the brunt of this cash splash for years, if not decades, to come,” he said.
“The ongoing interest bill on the additional $2.5 billion of debt the government will incur, at 4 to 5 percent government borrowing rates, translates to an ongoing annual cost to the budget of $100 million to $125 million.”
Meanwhile, eligible seniors, pensioners, and concession card holders will receive $1,372 off their power bills.
In addition, Queensland Government funded support of $325 off power bills will continue for small businesses.
A special appropriation bill will be introduced to the parliament to bring forward the payment.
Will Do Anything to Stay in Power: Opposition
Opposition leader David Crisafulli accused the premier of doing anything to stay in the top job in parliament on May 1.
“Will the Premier admit he will do and say anything to stay in power,” he asked the premier in Parliament (pdf).
On April 26, Mr. Miles conceded it is likely he will be swept out of power at the next election following dire polling.
In response to questioning about polling showing Labor trailing 44 to 56 against the Liberal National Party, Mr. Miles said, “The most likely outcome in October is that David Crisafulli will be the new premier,” he said.
Rebates to Be Applied In Second Half of the Year
Queensland Premier Steven Miles said the government is delivering the “biggest cost of living relief package in Queensland’s history.”
“Queenslanders tell me that inflation and rising mortgage payments, rents and grocery prices are their biggest concern,” he said.
“I said we would use the budget to deliver cost of living relief but I’ve decided its too urgent to wait that long.”
The rebates will be applied to bills in the first quarter of the next financial year.
“This follows the success of the current $550 rebate provided to households this year, which has helped lower electricity bills by 9.5 percent and bring down inflation,” Mr. Miles said.
“A lower energy bill puts more money back in the pockets of Queenslanders.”
Meanwhile, Deputy Premier and Treasurer Cameron Dick said the relief will go a long way to help Queensland families make ends meet.
“Every single Queensland household will get $1,000 off their energy bills in the second half of this year. That’s the biggest ever rebate offered by any government in Australia’s history and is expected to save Queenslanders more than $2.5 billion,” Mr. Dick said.
“Our investment back into the people of this state is only possible because the Miles Labor government is collecting Queensland’s fair share of coal royalties from multinational mining companies.”
Climate Emissions Targets Legislated
Meanwhile, the Labor government recently passed climate legislation that will include a 75 percent cut to climate change emissions by 2035 and net zero by 2050.
The Liberal National Party supported the 75 percent emissions reduction target, but oppose legislating the method of getting there amid concerns about energy bill costs.
During a speech on the Energy (Renewable Transformation and Jobs) Bill 2023 in parliament on April 17, Shadow Energy Minister Deb Frecklington said Labor’s plan poses a threat to the energy bills of Queenslanders.
“The Liberal National Party supports the targets, but we cannot support to legislate them when there is no credible pathway to achieve them,” Ms. Frecklington said.
“The risk that Labor’s plan poses to the energy bills of Queenslanders is far too great, and in Queensland’s cost-of-living crisis Queenslanders should not have to take that risk.
“The bill neglects to consider the extraordinary costs of the infrastructure proposed and its impact on taxpayers.”
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