Canberra And State Leaders Agree On Temporary Coal And Gas Prices Cap
To be introduced next week
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Coal and gas prices will be capped, while additional rebates for Australians on low and middle incomes as part of a $1.5 billion intervention has been agreed on by Canberra and the the states' leaders.
After meeting virtually on Friday following Prime Minister Anthony Albanese's Covid-19 diagnosis, governments have agreed to temporarily cap gas prices to $12 per gigajoule and cap coal prices at $125 per tonne.
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Without the caps, it's estimated consumers would have been out-of-pocket a further $230.
Parliament will reconvene next week to officially implement the change.
The additional $1.5 billion to fund additional consumer rebates for people has been set aside by the federal government, with officials saying the rebates, to be co-funded with state governments, will deliver power bill savings worth hundreds of dollars next year, although the benefits will vary from state to state.
The rebates will be applied directly to power bills, rather than cash handouts and are available for people on income support, pensioners, holders of a seniors health card, recipients of the family tax benefit and small businesses owners.
“These are actions that wouldn’t have been contemplated by governments in normal times, but governments throughout the world have had to take action and we are taking action here today,” Mr Albanese said in a press conference on Friday.
“We’re taking urgent action to shield Australian families from the worst impacts of these price hikes. We’re working hand in hand with our state and territory partners to find the best outcomes for all Australians – keeping Australians in work, keeping industry going, and making sure that families and businesses can pay their bills.”
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