Prime Minister Anthony Albanese has refused to guarantee that struggling households will continue receiving energy rebates beyond the end of the year, leaving millions uncertain as power prices keep climbing.

First introduced in the 2024 budget, the rebates initially offered every household a $300 reduction on power bills over the year, at a total cost of around $3.5billion.

This year’s budget added an extra $1.8bn to extend the relief for two more quarters, at a rate of $150 per household – bringing the total spend to over $5 billion.

The current extension is set to expire on December 31.

Pressed by David Speers on ABC’s Insiders on Sunday about whether or not the rebates would continue next year, Albanese replied: ‘What we’ve said is this wouldn’t be in place forever. This was an interim measure.’

He hinted that the government would revisit the issue when the Mid-Year Economic and Fiscal Outlook (MYEFO) was released before the end of January.

‘We’ll give consideration to that in the lead-up to MYEFO, and make an announcement before the end of the year.’

The continuing uncertainty comes as Labor faces mounting pressure to address rising energy costs.

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Anthony Albanese (pictured) refused to answer if the government would renew energy rebates

The Albanese cabinet is expected to meet on Monday to discuss a national gas reservation policy aimed at boosting domestic supply and reducing prices, though no immediate fix was promised.

‘The objective is cheaper gas,’ Albanese said.

‘We’re examining that. We won’t be making a decision tomorrow, contrary to what has been reported.’

The rebates have had a significant effect on inflation, reducing the Consumer Price Index by up to 0.75 per cent in 2023–24 and helping Labor tout its cost-of-living relief credentials.

But when the federal rebates expired in mid-2025, inflation spiked.

ABS figures show the CPI jumped 1.3 per cent in the September quarter, pushing annual inflation to 3.2 per cent from 2.1 per cent in June.

Electricity prices were the main driver, climbing 9 per cent in the quarter and 13.1 per cent over the year after rebates ended.

Economists warn the rebates have masked underlying price pressures, increasing volatility in inflation figures.

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Opposition Leader Sussan Ley has previously dismissed the scheme as a ‘political sugar hit’, accusing Labor of papering over the cracks

Opposition Leader Sussan Ley has previously dismissed the scheme as a ‘political sugar hit’, accusing Labor of papering over the cracks.

Opposition frontbencher Alex Hawke told Sky News the government was failing to tackle the root causes.

‘The number one reason the Labor government is bailing out so many heavy industry businesses is because their power costs are doubling or tripling when they go to sign new contracts,’ Hawke said.

‘So the question we have to ask is, how long can the taxpayer pay for electricity bills when the government pressure is increasing the price? It’s unsustainable. Labor knows it’s unsustainable.’

Hawke argued that another round of rebates would not solve the crisis.

‘We might have to agree with the government to another round of energy relief but that is not a solution to the power prices themselves going through the roof, because the consumer is paying more, and the government and the taxpayer, which means consumers, ultimately, are paying more as well,’ he said.

‘That isn’t a sustainable model.’