Power bill rebate fight heats up

The rollout of the government’s energy price relief plan will be at the centrepiece of Jim Chalmers’ meeting with his state and territory counterparts on Friday.

The treasurers’ will use the first Council on Federal Financial Relations meeting of the year to ramp up negotiations for their equal contributions to the plan, which Dr Chalmers says will be a centrepiece of the May budget.

NSW Treasurer Matt Kean is expected to use the meeting to call on the Albanese government to immediately deliver its share of the rebates, rather than force struggling Australians to wait, potentially until July.

The government’s energy price relief plan was rushed through parliament in a special sitting in December, after states and the commonwealth agreed to co-fund household rebates, in exchange for a cap on coal prices.

Anthony Albanese had previously promised national cabinet would finalise the final details of the plan by March, but in an opinion piece for The Australian on Friday, Dr Chalmers suggested the deadline would now be extended until the budget in May.

“These measures are targeted and affordable, taking some of the pressure off household budgets without putting more pressure on inflation,” he wrote.

As for whether the government would go further in the May budget to address the crippling cost-of-living crisis exacerbated by the ninth consecutive interest rate rise, Dr Chalmers said the budget had to be “responsible” and spending restraint would be its “hallmark”.

“No matter which way the numbers are cut, our first budget did some heavy lifting to take pressure off inflation, and we’ll continue that approach in our second in May,” he wrote.

The meeting of treasurers will also focus on the rollout of the National Housing Accord, and the progress of states and territories in building one million new homes from 2024.

“I’m really looking forward to meeting with my state and territory colleagues as we progress work on some of the biggest economic challenges facing our nation,” he said.