More than 5 million households will receive up to $500 in power bill relief as part of a "significant" cost of living package in Tuesday's federal budget.
Treasurer Jim Chalmers has revealed on Sunday that households will receive several hundred dollars, depending on where they live, in a 50-50 Commonwealth-state funded package. Canberrans have been expecting to get smaller rebates than other Australians due to its electricity generation coming from 100 per cent renewable sources.
It comes as oil and gas producers welcomed the proposed, but contentious overhaul of the petroleum resource rent tax which has been slated to give a "meaningful" $2.4 billion boost to budget revenue to give Australians, according to Dr Chalmers, a "fairer return" from LNG projects. The change has to be legislated.
Just two days out from the budget, the Treasurer has given more details of the much speculated on cost-of-living centrepiece to the Albanese government's second budget.
"More than 5.5 million households will get some assistance with their electricity bills, and around 1 million small businesses will be eligible as well," he told the ABC.
"And they will all be eligible for several hundred dollars to help with their electricity bills to take some of the edge off what is the key drivers of these cost of living pressures."
"And so we have had to strike arrangements with each of the states and territories. It will be different depending on where you live and what the electricity prices look like. We will make all of that clear on Tuesday."
The federal opposition has warned that cost of living relief must not fuel inflation.
"We want to see a budget that is going to put downward pressure on inflation, and the real test for everything that the government is doing now is it putting downward pressure on inflation," shadow treasurer Angus Taylor told the ABC's Insiders program.
The Treasurer has also appeared to confirm that the JobSeeker rate will be raised across the board, not just for people over the age of 55 years.
"Well, this will be a responsible budget for Australians who are doing it tough and central to that, probably the centrepiece of the Budget will be a cost-of-living package which is broader than what has been speculated on which prioritises the most vulnerable people and which applies to more than one age cohort," Dr Chalmers told Sky News.
Mr Taylor said the opposition is more focused on getting Australians into work.
"The priority right now has to be helping people into work and making sure we've got downward pressure on inflation when they get into work so that their real wages are strong. So that's got to be the priority," he said.
The shadow treasurer refused to say if the opposition will support the change to the overhaul of the petroleum resource rent tax, calling it a "complex" tax and that the opposition would have to see the details.
The proposed changes to the tax settings for oil and gas producers include a cap on deductions from July 1.
The Treasurer called on the opposition to not vacate the field and leave it to the Greens which he said is "not something the industry wants." Regardless, he still called on the Greens to support the PRRT changes to get a "fairer return on resources."