Canberra doubles down on cost-of-living election sweeteners

The government made a flurry of announcements in the lead up to this week’s federal Budget designed to relieve the pressure on disadvantaged Australians.

They ranged from $1.8 billion in energy relief, to streamlined access to government services such as Centrelink, to access to interest-free loans.

The initiatives are in line with the government’s strategy to shape its re-election pitch to voters around the cost-of-living issue.

Energy bill relief

The government said it would extend its energy rebates until the end of 2025, providing another $150 in energy bill relief for customers.

From July 1 all Australian households and about one million small businesses would benefit from $150 in rebates automatically applied to their electricity bills.

The rebates, which the government said would reduce inflation and cut average household energy bills by 7.5 percent, are in addition to those previously rolled out.

The government said its energy reforms, which include extending the Australian Competition and Consumer Commission (ACCC) inquiry into the national electricity market for a further year, would:

• help consumers to switch between energy plans to secure the best value for their money
• remove excessive fees and charges
• ensure people get the concessions they are entitled to, potentially saving them hundreds of dollars per year.

“We are providing immediate relief on energy bills now while we continue to progress the overdue reform needed to deliver the modern, affordable and reliable energy grid Australians deserve,” the government said in a joint announcement from Prime Minister Anthony Albanese, Treasurer Jim Chalmers and Climate Change and Energy Minister Chris Bowen.

“Our economic plan is all about finishing the fight against inflation, providing responsible cost of living relief and building a stronger and more productive economy.

“Helping with the cost of living is the number one priority of the Albanese Government and the Budget, and that’s what our energy rebates will do.”

No-interest loans

The government has allocated $48.7 million over the next five years to guarantee access to no fee, no-interest loans for struggling Australians.

The cash injection will be used to fund the No Interest Loans (NILs) program run by Good Shepherd Australia New Zealand and backed by the National Australia Bank.

The loans can be used for urgent, critical household purchases such as fridges, medical expenses and education and for vehicles for transport to work and essential day-to-day use.

Social Services Minister Amanda Rishworth said the Government’s investment would help ease cost-of-living pressures for many Australians who need support.

“We’re proud to support Good Shepherd and NAB to deliver no-interest loans as an alternative to other high-risk, high-interest products such as Buy Now Pay Later products and payday loans,” said Rishworth.

“NILs provides support that is usually unavailable to low-income earners through mainstream providers, meaning tens of thousands of vulnerable Australians can purchase the essential things they need.”

Rishworth said the loans also helped people achieve independence and financial recovery in escaping family, domestic and sexual violence.

“And having access to a vehicle gives many Australians the ability and independence to work, study, provide care or seek medical care.”

The Government has provided funding to Good Shepherd for the administration of NILs since 2009.

About 25,000 NILs loans are provided each year, while nearly 10,000 NILs for Vehicles loans have been provided since this program started in 2021.

Good Shepherd Australia New Zealand CEO Stella Avramopoulos said the program was helping break down barriers and empower women, sole parents and families, especially those escaping domestic violence, to achieve lasting financial independence and wellbeing.

“With 25 per cent of recipients being sole parents and 18 per cent survivors of family and domestic violence, this support isn’t just about financial assistance – it’s about providing dignity, stability, and a pathway to a better future,” she said.

Avramopoulos said this was possible only because of collaboration between not-for-profits, corporate entities and government.

“Together, we’re creating meaningful, lasting change – removing credit barriers, preventing predatory lending, and ensuring vulnerable Australians, particularly those in regional and remote communities, have access to the resources they need to recover and rebuild.”

Strengthening social connections

The government has allocated $989,000 toward improving access to essential government services for vulnerable Australians.

The cash injection will be used to boost neighbourhood houses and community centres across the country.

The community-based organisations help people access crucial federal government services such as Centrelink and emergency relief in geographically isolated and disadvantaged communities.

They also offer programs ranging from digital literacy to boosting employment skills and nutrition and cooking classes that help vulnerable Australians better engage with their communities.

The extra cash is being delivered under the government’s Strong and Resilient Communities (SARC) initiative, designed to help people become more self-reliant through community engagement.

The funding will be used by the Australian Neighbourhood Houses and Centres Association (ANHCA) to administer grants of up to $15,000 to eligible organisations to deliver more than 50 community-based projects.

It is estimated more than 400,000 disadvantaged Australians rely on services provided through 1,000 neighbourhood houses, neighbourhood centres and community centres across the nation every week.

ANHCA president Liz Bonner welcomed the funding boost.

“This dedicated funding for neighbourhood houses, neighbourhood centres and community centres across Australia is very welcome support for a sector that provides Australia's essential social infrastructure and contributes so much to social cohesion, at a time when the cost-of-living pressures are challenging community connection,” she said.

Social Services Minister Amanda Rishworth said supporting place-based solutions to address disadvantage helped build stronger and more resilient communities.

“The Albanese Labor government is pleased to partner with ANHCA to deliver better outcomes for neighbourhood houses and community centres by addressing services gaps identified by the community and removing barriers vulnerable groups face to access support,” she said.

“ANHCA is well-equipped with the expertise, community knowledge, and sector understanding to ensure that government funding is being used and delivered where it is needed most.”

Strengthening social connections

The government has allocated $989,000 toward improving access to essential government services for vulnerable Australians.

The cash injection will be used to boost neighbourhood houses and community centres across the country.

The community-based organisations help people access crucial federal government services such as Centrelink and emergency relief in geographically isolated and disadvantaged communities.

They also offer programs ranging from digital literacy to boosting employment skills to nutrition and cooking classes that help vulnerable Australians better engage with their communities.

The extra cash is being delivered under the government’s Strong and Resilient Communities (SARC) initiative, designed to help people become more self-reliant through community engagement.

The funding will be used by the Australian Neighbourhood Houses and Centres Association (ANHCA) to administer grants of up to $15,000 to eligible organisations to deliver more than 50 community-based projects.

It is estimated more than 400,000 disadvantaged Australians rely on services provided through 1,000 neighbourhood houses, neighbourhood centres and community centres across the nation every week.

ANHCA president Liz Bonner welcomed the funding boost.

“This dedicated funding for neighbourhood houses, neighbourhood centres and community centres across Australia is very welcome support for a sector that provides Australia's essential social infrastructure and contributes so much to social cohesion, at a time when the cost-of-living pressures are challenging community connection,” she said.

Social Services Minister Amanda Rishworth said supporting place-based solutions to address disadvantage helped build stronger and more resilient communities.

“The Albanese Labor government is pleased to partner with ANHCA to deliver better outcomes for neighbourhood houses and community centres by addressing services gaps identified by the community and removing barriers vulnerable groups face to access support,” she said.

“ANHCA is well-equipped with the expertise, community knowledge, and sector understanding to ensure that government funding is being used and delivered where it is needed most.”