But, the Opposition said it could raise the risk of another interest rate hike.
Energy Minister Chris Bowen said the government was providing much needed relief amidst the cost of living crisis, as he switched on a new community battery in Sydney’s south on Saturday – one of hundreds being rolled out across the country
“We are providing real cost of living relief from Monday for anyone with an energy bill,” he said.
And, in another win for struggling households, from Monday most customers can expect to see their electricity bills fall between one and six per cent, after years of price rises.
“A long way to go but we’ve now turned the corner and are seeing energy prices come down,” Bowen said.
July 1 will also bring increases to the minimum wage and awards, while parents will get an extra two weeks of paid parental leave.
There’s tax cuts as well, with workers getting between $350 – $4500 depending on incomes.
While this is good news for households, there’s concerns all this extra money in the economy will only contribute to inflation raising the risk of another interest rate hike.
“Homegrown inflation is going in the wrong direction – it’s going up, not down,” Shadow Treasurer Angus Taylor said.
“We know we’re going to have higher interest rates now for longer and there’s real prospects of an interest rate increase, according to economists and the markets.”
But it isn’t dampening the Prime Minister’s spirits.
Surrounded by 14-million-seedlings on Saturday, Anthony Albanese pointed out it’s “about the same number as the Australians who will get a tax cut on Monday.”
The next interest rate decision from the Reserve Bank of Australia is set to be announced on August 6.