Milton Dick (Speaker) Share this | Link to this | Hansard source

I have received a letter from the honourable member for Kooyong proposing that a definite matter of public importance be submitted to the House for discussion, namely:

Utilising household energy measures to ease cost of living pressures and support Australia's energy transition and sovereign capability amid ongoing energy instability and uncertainty.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

On Tuesday, the Australian Bureau of Statistics released figures showing the biggest quarterly increase in housing prices in five years. But it's not just the price of owning or renting houses that is squeezing Australians; increasingly, it's just the cost of living in those homes. The rising costs of electricity, gas and other essential utilities are placing a heavy and growing burden on Australians across the country. Electricity costs rose by 32.2 per cent in the 12 months to January 2026, compared to a rise of 21.5 per cent in the year preceding. This represents an increase in the rate of growth of more than 10 percentage points in just one month. Part of the pressure on households come as state and federal energy rebates are wound back. That includes cessation of the Commonwealth Energy Bill Relief Fund. While these rebates did provide some important short-term relief during periods of high inflation and energy market volatility, their withdrawal means that now many households are fully exposed to the underlying cost of Australia's energy system.

But domestic policy settings are only one part of the story. We're also experiencing a period of increasing global instability. The latest conflict in the Middle East is echoing the market shocks that we experienced in 2022. Following Russia's invasion of Ukraine, national household gas and electricity prices jumped by 27 per cent and 43 per cent respectively in the year to March 2023, forcing the government at that time to spend billions of dollars on subsidies. Today, we're seeing similar warning signs emerge in global energy markets. Qatar's decision to suspend LNG production, which accounts for about 20 per cent of the world's LNG, will significantly disrupt global energy supply. Much as it was in 2022, Australia's domestic gas market remains very exposed to global market shocks. Despite us being one of the world's largest exporters of liquefied natural gas, Australia's east coast gas market is tightly connected to international prices. When global prices rise, domestic prices too often rise as well. While the government has committed to implementing a domestic gas reservation scheme requiring LNG exporters to set aside 15 to 25 per cent of their gas for domestic use, that scheme will not come into action at this point until 2027. In the meantime, Australians, households and businesses remain vulnerable to high energy bills.

Gas only constitutes about six per cent of the overall energy mix in our national electricity market. But because of the way that the wholesale electricity market sets prices, high gas prices are still driving up electricity costs for households, and gas power generation remains vital back-up during periods of low renewable output and high demand. The east coast still has vast quantities of gas, but most of that gas is in Queensland and it's controlled by only three consortia. As production from the Bass Strait declines, the lion's share of production is going straight to export and the east coast still risks running out of gas. Around three million Australian households remain dependent on gas. In my home state of Victoria, that's 90 per cent of homes.

In this global context, at the time of an impending energy crisis, the need to invest in Australia's energy security and sovereign capability has never been clearer. The government's Cheaper Home Batteries Program was an important home upgrade initiative to help people electrify and bring down their energy bills. It saw more batteries installed in the last six months of 2025 than in the preceding five years altogether, demonstrating the effectiveness of targeted clean energy subsidies.

We need more of those sorts of initiatives. An obvious example is household insulation. Many Australian homes remain either underinsulated or uninsulated. Most Australian homes were built before minimum energy efficiency requirements were introduced nationally in 2003. The cheapest energy is the energy that you don't have to use. Targeted insulation upgrades can significantly improve the energy efficiency of existing Australian homes. It can help households to need and to use less energy, in turn helping to lower household energy costs and to reduce demand on Australia's energy grid.

Insulation is a cost-effective solution across all climates—hot and cold. Properly installed ceiling insulation can reduce indoor summer temperatures by up to seven degrees and winter heat losses by as much as 35 per cent. Through insulation alone, one million homes in Victoria could save more than 11 petajoules of energy in total, or approximately 3,085 gigawatt-hours every year. It's been projected that insulation could save Australian households between $400 and $800 in their energy bills annually, while reducing peak demand on our energy grid. So, not only is there a cost-of-living argument; household insulation will also help Australia reach our emission reduction targets.

All federal, state and territory governments have committed to net zero by 2050. Reaching this target will require a commitment to household energy upgrades—upgrades like insulation, like solar, and like home and community batteries—to improve energy efficiency across all of our Australian housing stock. Following the success of the Cheaper Home Batteries Program, I welcome the government's announcement of a $7.2 million expansion of that program. But at this point, as we look at the upcoming budget, I encourage the government to continue investing not just in this initiative but also in other targeted clean energy household subsidies. By investing in these sorts of measures—like insulation, solar and helping rentals electrify—Australia can ease the immediate cost-of-living pressures facing millions of Australians. Measures like these will help families lower their energy bills while reducing demand on our electricity grid and strengthening the resilience and security of our domestic market.

Josh Wilson (Fremantle, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Link to this | Hansard source

I thank the member for Kooyong for proposing this topic and for framing it in a way that is characteristically thoughtful, constructive and timely, considering our present circumstances.

The fact is that Australia is undergoing a comprehensive energy transition. It's being led by this government in a way that is starkly different from the approach that occurred in the 10 years previous under the coalition—a wasted decade—and it's occurring as part of a global shift being driven by necessity and good sense. It's a change that, for Australia, will mean lower costs than would otherwise be the case, more stability and control, cleaner air and lower emissions, more investments, more jobs and more export opportunities. That's why the Albanese government is leading that change in partnership with the broader Australian community—because it's a transition that the Australian community is 100 per cent up for. That also goes for our household sector and for our business and non-government organisation sectors. We know there's a lot more to be done, but the progress we've made is remarkable.

People can ask how we are going. I'll tell you how we're going. Last year, in 2025, we deployed more renewable energy and storage than ever before, we saw more new EVs than ever before, and we saw the largest annual reduction in Australia's emissions outside of the COVID lockdown period. That's what occurred in 2025. In terms of renewable energy generation deployment, there was seven gigawatts of additional utility in smaller scale renewables. That is seven gigawatts of additional generation when, in the previous decade, we actually saw gigawatts of generation leave the grid altogether because the coalition didn't even have an energy policy through that period of time. They flirted with 22 separate policies and delivered zero. We saw five gigawatts of additional grid-scale battery capacity added last year. That, in one year, is the equivalent of what was delivered between 2017 and 2024. That is real progress, but there's a lot further to go.

We know that the effort is occurring in difficult and turbulent global circumstances, from the war in Ukraine, which, sadly, continues, to the fresh conflict in the Middle East. As the member for Kooyong observed, that is putting pressure on energy prices, and that's why our work from 2022 and every year since then has been to provide relief and to take action to put downward pressure on energy prices through our approach, in terms of gas caps and rebates, to move now towards a reservation scheme, which I can say, as a Western Australian, is a very sensible thing to do.

This is not just in relation to energy prices. We've made a contribution to recognising that the cost of living doesn't exist in neat compartments. It's something you experience in aggregate. We've made a contribution to bringing down those pressures in all ways—by seeing real wages rise, by reducing common costs like health and education, by doing things to make a difference for Australian households, particularly for households that face disadvantage and socioeconomic pressures. I know that the member for Kooyong and members of the crossbench have supported that. Almost all of those measures—I don't want to say 'all of them', because there might be one or two that I'd be wrong about—have been opposed by the Liberal and National Party members.

There's no question that the clean energy transition is needed for lots of different reasons. It's needed to tackle dangerous climate change. It's needed because that's the way the world is moving. It's needed because the energy sources that we've relied upon in the modern era, over the last 150 years, are themselves finite. There is not an infinite amount of oil, coal and gas, so the transition has to occur. In Australia we have a remarkable ability to do that in world-leading fashion, and we've already seen some of those benefits.

The way in which it is experienced by households at a time of cost-of-living pressures is pretty dramatic. The moment that a household goes from not having solar to having solar can save them $2,000 a year. If they add a battery, it's a further $1,000. If you make some of the investments that the member for Kooyong is talking about—which, frankly, probably come at the top of that list, such as insulation, thermal sealing and, perhaps, window treatments—the efficiency savings and the savings that accrue from having energy efficient appliances can add another $1,000 a year. If you go from a combustion vehicle to an EV, that's probably $1,000 in savings just in the fuel costs, not to mention saving on the operational costs that come from cheaper and less frequent maintenance. We know that that makes a big difference. That's why we're delivering that at the same time that we recognise the systemic benefits.

Because the word 'household' is in the topic, I'm just going to try and cover a couple of the more household focused measures that have occurred and that the member for Kooyong didn't cover. I've said we're already the world leader for rooftop solar. One in three households, more than four million households Australia-wide, have it. In some jurisdictions, such as WA, it's two in five. Solar not only makes a big cost pressure improvement for those households; it makes a systemic benefit for the grid as a whole.

When we got to, probably, April or May last year, we knew there was a big challenge in terms of distributed storage, because, while we had one in three with solar, there were probably fewer than one in 40 with batteries. In terms of distributed battery storage, we've now actually added the same amount in the last eight months as existed prior to the Cheaper Home Batteries Program. There are 250,000-plus households at six gigawatt hours of storage alone. The regulators are observing that that contribution in eight months is putting downward pressure systemically, which is really heartening. There's $1 billion through the Clean Energy Finance Corporation Household Energy Upgrades Fund. That provides green loans, cheaper finance, for people to undertake energy performance upgrades, which can include insulation, glazing, solar, batteries et cetera.

We know that the transition should only occur on the basis that we place proper focus on the people who need it most—the households and the parts of our community that face socioeconomic disadvantage. That's why we created the Social Housing Energy Performance Initiative, which the states have put $300 million into and we've put $800 million into. That will see the upgrade of 100,000 social housing dwellings. I went to the launch of the South Australian version of that program with former member in this place Nick Champion, and we visited a house occupied by a tenant, Janet, who'd lived in that house and raised her family there for 35 years. She was getting insulation that afternoon for the first time. I think that's a fantastic and characteristically Labor program to lift up people in social housing at the same time as we deliver a lot more social housing. We're making sure that the benefits of solar can be experienced by people who can't necessarily put solar on their roofs, through the Community Solar Banks Program and the Solar for Apartments Program. There's $100 million there.

I've touched on transport. Under this government, we've tripled the number of EV models available to Australians, with many more cheaper and affordable EV models, because of the reform that we undertook through the first National Electric Vehicle Strategy and the delivery of the New Vehicle Efficiency Standard for the first time. So we've tripled the availability of EV models, we've tripled EV charging and we've seen the sale of EV vehicles go from four per cent in 2022 to 13 per cent last year. The ratio of new vehicles that are being sold as EVs has tripled. In the first couple of months of 2026, it's at 17 per cent. So we've gone from one in 25 new vehicles being EVs to one in six in four years. We're now approaching 500,000 EVs nationwide. Last year, sales increased 38 per cent, and year on year—if you go from February 2025 to February 2026—it's jumped 96 per cent. That's making a massive, massive difference.

In terms of energy performance, we've extended the Nationwide House Energy Rating Scheme that applied to new dwellings from about 2003 to 2004. We recognise that there are lots of existing homes that haven't had the benefit of that scheme. We will extend it from 1 July this year to all existing homes. That's an additional seven million dwellings that will be able to measure their energy performance. We know that, if you go from a two-star rating to a five-star rating, you see 40 per cent less energy use. That's 40 per cent lower energy costs. We want to support that, as I said before, through the Household Energy Upgrades Fund.

We are delivering the new Solar Sharer program, which will become available from 1 July. It'll be in New South Wales, South Australia and South-East Queensland. That will mean retailers have to offer a three-hour free power period. We think that's really significant. We'll start to see some of that time shifting, where people can use energy when we've got massive amounts of solar, and it will bring system costs down. So I really, really welcome this topic. I could go on for another 10 or 15 minutes and rattle through lots more programs. It's part of the big, big difference that the Albanese Labor government is delivering on behalf of the Australian community.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

I applaud the member for Kooyong for bringing this matter of public importance before the House. It's a powerful reminder at a critical point in time that, if we get it right, the energy transition can support climate action, ease the cost-of-living pressures for Australians and enhance Australia's energy independence. The reality is that the cheapest energy available to many households today is the energy they don't have to buy, or the renewable energy they generate themselves. That is why investments in household measures, such as rooftop solar, home batteries, insulation, energy efficient appliances and electrification, should all be priorities for governments at all levels in this country. These measures reduce energy demand, cut household bills and ease pressure on the broader energy system. They also accelerate Australia's transition to cleaner energy, which is essential, of course, if we are to meet our climate obligations and protect our environment for future generations.

Of course, there's another very important dimension to this conversation that's often overlooked, and that's energy security. If that wasn't staring us in the face previously, it sure is now, with global oil supplies in doubt and oil shares whiplashing like there's no tomorrow. While some bowsers run dry and fuel prices spike, this is unsurprisingly the hottest political topic right now, turbocharged by the opposition, which is shamelessly and cynically trying to tap into it for political gain. But that's not to say that the government has clean hands, because, like its predecessors, it has virtually ignored the International Energy Agency's fuel-holding guidelines and, even now, is failing to urgently introduce the sorts of pricing restrictions adopted by, at least, Germany. Like most of my colleagues, I've been hearing regularly from constituents about increased prices at the bowser. I take the point of the Minister for Climate Change and Energy that Australia currently has a sufficient fuel supply and that supplies continue to reach Australia, but that just makes it even more appalling that retailers are jacking up prices in this way. Frankly, it's just shameless price gouging done under the cover of the illegal war in Iran, and it should come with serious consequences, but, so far, it doesn't.

All of this goes to show that, in a world where energy markets are increasingly volatile and geopolitical tensions have the potential for prolonged disruption of global supply chains, Australia must think carefully about its energy independence and its sovereign capability, and it must think too about the impact that energy insecurity has on the lives of ordinary Australians. When households generate and store their own energy, they are not just saving money; they are contributing to a more decentralised, distributed and resilient national energy system. That makes Australia less vulnerable to international shocks and supply lines, less reliant on our ageing fossil-fuel based energy infrastructure and a harder target for price gouging and cartel-like shakedowns from energy suppliers.

But, as with anything, how we do this matters. While Australia is a world leader in things like rooftop solar, too many people in regional Australia, as well as low- and middle-income earners, renters and other marginalised communities, are missing out. So the government must ensure that investment in household measures means they are available to everyone, not just those who can afford the upfront costs. To that end, the government should enhance and extend its targeted grants, low-interest loans, community energy programs and minimum energy efficiency standards to help ensure that the transition is fair and equitable as well as effective. Of course, the opposition probably won't have a bar of this because they're still hooked on fossil fuels or, depending on the time of day, nuclear power and seemingly baffled by renewable energy. But I suggest they try to take the blinkers off and re-examine the issue in light of the national interest and the interests of their constituents.

Moreover, adding extra capacity and stability to our grid through investment in household measures will be beneficial in freeing up energy capacity and investment for Australian industry. In other words, if you're fair dinkum about being 'hyper-Australia' and starting to make things again in this country, then you'd actually support and fast-track home energy measures. In closing, I want to thank the member for Kooyong for bringing this important topic before the House, because it's increasingly clear that investment in the energy transition for households is good economic policy, good environmental policy and good national security policy.

Susan Templeman (Macquarie, Australian Labor Party) Share this | Link to this | Hansard source

I'm really pleased to have an opportunity to speak to this MPI and about the really significant support the Albanese Labor government has given households to take control of their energy use and bills. This is something I have been wanting to see for a long time, and it did not happen until we came to government. One way of thinking about how Australians have embraced, for instance, our Cheaper Home Batteries Program is that it took us 10 years to put in the first six gigawatt hours of household storage—it took the country 10 years to do that—and it's taken eight months to put in the second six gigawatts of household storage. That is a remarkable turnaround for the country. It's being done on roofs in electorates like mine in Western Sydney, in peri-urban and regional areas, more than it is happening anywhere else in the country, and we're very proud of that.

This is partly about acting to tackle energy bills. Of course, there'll always be more to do on that it. But we have, over the course of our terms in office, tackled power bill relief, put caps on gas prices and invested in renewables, all of which the coalition opposed. If they had their way, we would be back shovelling coal into our own little coal stoves. The plan really does have those two parts—cheaper, cleaner energy and a better deal for households—so it's putting Australians back in charge of their energy bills with better access to solar, batteries and, of course, cars that will run, more cheaply, on electricity. At a time like this, when we can see the pressures that the more traditional energy sources have when there are critical things happening around the world, that's something I think more and more Australians will wake up to.

I want to quote the minister for climate change. He spoke to this MPI long before it was proposed earlier this week in talking about the sovereign capacity of Australia. He said that the transition of our energy system to more renewables, which is the cheapest form of energy, is not dependent on global supply chains; Vladimir Putin cannot interrupt the supply of sun to Australia, and the international circumstance in the Middle East cannot interrupt the flow of wind in Australia. So that is a reliable form of energy, and that speaks to another reason this is so important not just for individual households but for us as a nation.

Cheaper Home Batteries is one of my very favourite programs at the moment because it is so embraced by people in Macquarie and neighbouring areas. It helps households store the cheaper, cleaner energy they generate during the day from their rooftop solar and then use it when they need it most, including during the evening peak. So we've got less pressure on the grid at peak times, lower reliance on expensive generation and downward pressure on prices for everyone. Along with the community batteries that are up and running in Blaxland, Blaxland East and Hobartville, these home batteries help the grid manage demand more efficiently, improve system reliability and support the shift to more renewable energy.

Our local clean energy businesses are busier than ever, with more than 2,000 homes and small businesses in Macquarie benefiting from this Cheaper Home Batteries Program. Around the country, we've surpassed 250,000. I think we're up to 265,000-plus home batteries. I want to talk about Penrith Solar Centre as an example, now known as PSC energy. I visited their Penrith facility with the minister last year. Jake Warner, who's the director, a Penrith local who started out as an electrical apprentice, says the Cheaper Home Batteries subsidy has been incredible not just for mums and dads but for everyday Australians across Australia in getting access to more affordable energy. Not only is it more affordable; it's more secure and more stable. We're seeing the grid become increasingly stable since the deployment of these decentralised home batteries. We're seeing power bills slashed, in some cases to zero, he says. This is an incredible effort. For companies like his, it's created 50 new jobs. He and Damian McMahon from Blue Mountains Solar speak to what a difference this is making to their customers. I'm proud to be part of a government doing this good work.

Sophie Scamps (Mackellar, Independent) Share this | Link to this | Hansard source

I thank the member for Kooyong, too, for raising this matter of public importance on the opportunity for Australia to improve our sovereign capability and make energy cheaper for everyday Australians through the clean energy transition. I will focus today on household transport, something that is particularly topical considering the recent petrol price hikes that have occurred in response to the Middle East war—price hikes that are impacting Australians across the country right now.

It must be noted that we live in an increasingly volatile world. In just a handful of years, we've had a number of major international disruptions, including the COVID pandemic, the Russian invasion of Ukraine and now the war in Iran. Australia's poor fuel security remains one of our biggest national vulnerabilities and drives up cost of living. Yet one of the most effective ways to reduce this risk is often overlooked, and that is investing in electric and active transport. The International Energy Agency has emphasised this point. In response to the oil shock, triggered by Russia's invasion of Ukraine back in 2022, the IEA released a 10-point plan to cut oil use aimed at easing market strain. Among its key recommendations were making public transport cheaper; incentivising micro-mobility, walking and cycling; and speeding up the adoption of electric and more efficient vehicles.

For more than a decade, analysts and industry have warned Australian governments about our poor fuel security. Australia imports more than 90 per cent of our refined fuel, tying households and businesses to volatile global markets. The 2020 Liquid Fuel Security review revealed that, alarmingly, the emergency powers to ration fuel stocks could take up to three weeks to implement in the event of a fuel emergency. We remain non-compliant with the IEA obligation to hold 90 days of net oil imports. As a country that imports the majority of our liquid fuels, it will always be difficult to achieve this target.

The more reliant our transport sector is on foreign oil, the more exposed Australians are to higher prices during global conflicts. The faster we shift our cars, vans and buses off petrol, the more capacity we free up to tackle more difficult fuel security problems such as diesel for freight and aviation fuel. Accelerating the uptake of electric vehicles, especially public transport, and shifting shorter car trips to walking, cycling or e-mobility devices will directly reduce our dependence on imported oil. It is important to note that around two-thirds of the car journeys in our cities are able to be walked, wheeled or cycled in 15 minutes or less.

The new vehicle efficiency standards, introduced by government in 2024 following a strong push from the crossbench, were a great first step. We've heard there are now twice as many EVs on our roads as there were two years ago. Yet the government is now considering winding back tax incentives and exemptions for EVs purchased through novated leasing programs. This is despite electric vehicles still making up only 13 per cent of new car sales in Australia. Now is not the time to be removing the very incentives that are helping people make this switch. We need clear targets, as well, to reach 100 per cent electric passenger car sales, just as countries like the UK and France have already set. We also need stronger support for charging infrastructure right across the country, and, importantly, we must introduce policies that help low-income households and renters make the transition to electric vehicles.

Australia also desperately needs proactive policies and investment to increase our active transport rate. Currently, we spend $714 per person on roads every year, but just 90c goes to walking, wheeling and cycling. The government's Active Transport Fund is woefully inadequate. The Australia Institute research has shown that the $100 million in the Active Transport Fund would only be enough to build 25 kilometres to 50 kilometres of new separated bike paths. In contrast, France plans to invest the equivalent of around A$3.2 billion in cycling infrastructure between 2023 and 2027, and they have committed to building 100,000 kilometres of cycle lanes by 2023. (Time expired)

Tom French (Moore, Australian Labor Party) Share this | Link to this | Hansard source

The cost of living remains the dominant issue in conversations with households across the country. Energy bills are part of that pressure. Families feel it across Australia. The same is true in my electorate of Moore. From Karrinyup through to Duncraig, Sorrento, Hillarys and Mullaloo, households are conscious of electricity costs and what they mean for the weekly budget. Electricity is not a discretionary expense. It powers lights, refrigeration, heating, cooling and communication. Reliable and affordable power is therefore essential.

When we talk about household energy policy, it is important to place the discussion in the broader economic context. When this government came to office, the economic starting point was challenging. We inherited significant deficits, a trillion dollars of debt, high inflation and falling real wages. Since then, the focus has been on stabilising the economy while delivering responsible cost-of-living relief. The most recent national accounts show the Australian economy growing at 2.6 per cent through the year. That is the strongest pace of growth in almost three years and is faster than every major advanced economy. Importantly, that growth is being driven by the private sector, not public spending. That matters because cost-of-living relief must be delivered without adding to inflation. Australia is facing global uncertainty, but the economic data shows the country is approaching those challenges from a position of strength. Strong economic management creates the capacity to deliver practical relief to households.

One of the most important improvements in the economy has been the recovery in household incomes. Real disposable income per person has increased by around two per cent over the past year, reversing the decline that occurred earlier. Wage growth has contributed to that improvement. Minimum and award wages have increased significantly in recent years. Employment growth has been strong. Since this government came to office, more than 1.2 million jobs have been created. Unemployment remains low, and workforce participation is close to record levels. In practical terms, the recovery in household living standards is being driven by people working and earning.

Alongside rising wages, the government has delivered tax relief. Every Australian taxpayer has received a tax cut, with further reductions to commence in the coming financial year. These measures increase take-home pay and help households manage cost pressures. They sit alongside policies designed to reduce everyday expenses. For example, medicines under the Pharmaceutical Benefits Scheme are now capped at $25 or less. That is the largest reduction in medicines in the history of the PBS and will save Australians hundreds of millions of dollars each year. Investments in Medicare, including expanded bulk-billing and urgent care clinics, also reduce the financial burden on families.

Within that broader cost-of-living framework, household energy measures play a specific role. Unlike temporary payments, energy efficiency upgrades and rooftop solar can reduce electricity bills permanently. Australia now has one of the highest rates of rooftop solar adoption in the world. Millions of households have installed solar panels as a way of managing their power bills. Across many suburbs in metropolitan Perth, including communities throughout Moore, solar panels are now a common feature of rooftops. Households have adopted these technologies because they make economic sense. They reduce electricity consumption from the grid and lower long-term costs.

The next stage of this development is the expansion of household battery storage. The government's Cheaper Home Batteries Program is designed to support this transition. The program is expected to expand to around $7.2 billion over four years, helping households, small businesses and community organisations reduce their electricity bills. It is expected to support the installation of more than two million batteries by 2030, delivering approximately 40 gigawatt hours of storage capacity. Household batteries store solar energy generated during the day and make it available when demand increases. This not only helps households manage their bills but also strengthens the electricity system itself.

Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

When energy prices rise, it's not the politicians who feel it; it's the families and the businesses. In my community of Fowler and for small business owners across Western Sydney, we are currently living through a period of immense pressure. When we talk about energy in this place, we often speak in abstractions, targets, transitions and percentages. For the people I represent, however, energy is a line item on the balance sheet that is increasingly failing to add up. I've been raising these concerns since I entered parliament. I have called for fuel excise relief and warned about the rising costs of power. I have asked the Prime Minister and the government for a clear explanation of how government policies translate into real relief for struggling households and businesses.

Here are just some examples of what energy chaos looks like on the ground. A local bakery cafe in Cabramatta told me that their energy rate in March 2024 was 32c per kilowatt. By April, it had jumped to about 49c per kilowatt. That is about a 53 per cent increase in a single month. Another local bakery in Canley Vale have seen their flour prices rise by 40 per cent since 2022, on top of skyrocketing energy prices and rent. When you hit a small business with these kinds of increases, you aren't just adjusting a price. You are removing the hope of even a small profit. You're asking a family, who have poured their life's work into a shop, to decide which staff to let go and whether they can even afford to keep the lights on.

The government's primary answer to this crisis has been the Cheaper Home Batteries Program, but there is a massive disconnect between the press releases and the reality in Western Sydney. A home battery rebate does very little for a bakery strangled by commercial energy tariffs and rising overheads. Even on its own terms, the batteries program is stumbling. It launched with a promise of one million batteries by 2030, backed by $2.3 billion. Yet, because the initial funding was exhausted so rapidly, the government has had to commit a further $5 billion of taxpayers' money just to chase the original target. But it's questionable whether that target will even be reached. In a cost-of-living crisis, a $5 billion correction is a massive figure.

More importantly, we must ask who is actually benefiting from this spending. In Fowler we have approximately 68,000 households. Do you know how many, as of late last year, are actually benefiting from the battery program? It is just under 500. Fowler sits at 96 on the list for installation. For the vast majority of my constituents—the renters, the families in townhouses and those in social housing—this program is practically inaccessible. My community is being asked to pay for a transition that is leaping over Western Sydney and landing in the laps of those who are already ahead. I don't say this to be partisan. I say it because the current approach is leaving the entire ecosystem of Fowler behind. Our small-business owners are the very same people heading these households.

If we want sovereign capability, we must ensure that our local shops remain viable. If we want a fair transition, it must be accessible to the families, the renters and the workers, who simply cannot afford the gap payment for a battery, even with a discount. I ask the government to look beyond the Instagram feeds and to the tens of thousands of households in my electorate who are still waiting for the cheaper power they were promised. We need structural reform, not just sugar hits. No-one should be left behind, and it's time that the government's energy policy reflected that. I'd like to say thank you to the member for Kooyong for raising a matter of public importance on this subject.

Madonna Jarrett (Brisbane, Australian Labor Party) Share this | Link to this | Hansard source

Thank you to the member for Kooyong for raising this matter of public importance. It really does go to the heart of what the Labor government is doing in transforming our energy system. I note that there are elements of that transformation that the member for Kooyong has supported.

We know that one of the best ways to reduce vulnerability to high energy costs and to bring down costs overall for Australians, and also to build and protect sovereign capability in our energy system, is to invest in renewable energy. The Australian energy grid is undergoing a major transformation. This is vitally important, because not only will it deliver cheaper power to Australian households but also it will make us less reliant on foreign imports. This is backed up by the CSIRO, who also said that the cheapest form of energy is in renewables, and, on this side of the House, we'll listen to the scientists.

At the start of this month, the Minister for Climate Change and Energy announced that more than a quarter of a million households, small businesses and community organisations have installed bill-busting batteries. I don't call that a failure. This is part of the government's Cheaper Home Batteries Program. In fact, around half are also installing upgraded solar systems at the same time. When I look across the lovely rooftops of my electorate in Brisbane and see them glistening with solar panels, I think, it's no wonder—given we are the sunshine state.

Together, batteries installed under the program have now reached 6.3 gigawatt hours of storage. This milestone shows that Australians are embracing practical upgrades that cut power bills, make better use of rooftop solar and help build a cleaner and more reliable energy system. Home batteries help households store cheaper, cleaner energy, which is generated during the day and can be used during the evening, which is a peak period.

Again, contrary to what the member for Fowler said, the battery program is a huge success. It takes pressure off the grid, lowers reliance on expensive generation and puts downward pressure on prices for everyone. As more batteries, including community and grid-scale batteries, are installed across the country, they also help the grid manage demand more efficiently, improve system reliability and support the shift to a more renewable energy system. That's why I'm going to repeat what I've said in this House before. We need our community batteries in Newmarket and the Gap to help service my community of Brisbane. The LNP council needs to stop playing politics and give us the go-ahead.

Another program is our Solar Sharer Offer, the SSO. The SSO is an electricity standing offer that will provide households with the option of a daily window of free energy usage. The offer incentivises households to shift their energy use to periods of low-cost generation during the day, saving them money and delivering significant system-wide benefits that lower costs for all consumers.

On top of these programs, we've also delivered $150 energy rebates for all Australian households, because we recognise that Australians are doing it tough, and every little bit helps. This government has also approved our 100th renewable energy project, with recent figures revealing that renewable energy is now powering 51 per cent of the grid. The government is doing a lot. We're doing as much as we can. We need to do more, and I again acknowledge the various members of the crossbench who have supported a number of these reforms.

On this side of the House, we listen to the science and we act on it. We've acted to help with power bill relief, gas price caps and investment in cheap renewables, all of which those opposite have opposed. In fact, those opposite haven't had a coherent energy policy for the past decade. Does the $660 million nuclear option, which was rejected by the Australian people, ring any bells?

The world is shifting. Energy is not just about power; it's about security and about the future. We're entering a new era of energy sovereignty where power, in terms of both energy and geopolitics, increasingly comes from producing energy close to where it's used. Why? Because sovereign power reduces our geopolitical exposure and protects our economic and national security. Our government recognises this. We're investing to make it happen. We're investing in renewables, and it's good for our sovereign capability.

Allegra Spender (Wentworth, Independent) Share this | Link to this | Hansard source

Australia is an energy superpower. Few countries are as richly endowed with energy resources as we are, both those of the past and those of the future. Our electricity grid, while only 50 per cent renewable, is powered by 100 per cent Australian fuels. The coal, wind, gas and sunshine that generate our electricity are domestic. Unlike many countries, we do not rely on imported fuels to keep our lights on, although we do to keep our cars running. So we start from a position of enormous strength. But, as was said at Climate Action Week in Sydney, advantage matters only if we act. The fact that we are even having a conversation about energy insecurity in a country with Australia's resources is in many ways a failure of policy.

When the east coast began exporting LNG, we did so without putting in place a domestic gas reservation scheme. Since then, despite tripling of production, domestic prices have also roughly tripled. Supply has grown, but prices have tripled as well. That is not the outcome of scarcity. It is the result of policy decisions that linked Australian gas to volatile international markets. Those markets are shaped by forces far beyond our control: the war in Ukraine, the US fracking boom, OPEC supply decisions, rising demand across South-East Asia, and now the conflict in the Middle East.

Such volatility can be a windfall for exporters, many of which are foreign owned. But for Australian households and businesses it has meant painful price shocks and ongoing uncertainty. The current geopolitical crisis has made three things clear. First, on cost: we cannot wait until 2027 for domestic gas reservation to ensure Australian households and businesses using Australian gas are not forced to pay volatile international prices. Second, on benefit: when global conflicts drive extra extraordinary spikes in export revenues, Australians should share in that benefit. It is urgent that we implement a windfall tax on war-driven, supernormal revenues, as the EU and UK did in 2022. Already there are calls on government for cost-of-living relief, for example by slashing fuel excise or reintroducing electricity rebates. Such calls cannot be answered without a stronger budget position.

Without a windfall tax, energy price relief would in effect be a transfer payment from government to multinationals. Third, we must accelerate the electrification of our economy. This is not only about climate; it is about energy security and the cost of living. Australia imports most of its liquid fuels, leaving us exposed to global shocks. We could reopen refineries and lock ourselves further into the fuels of the past, or we can accelerate our transition to cleaner, cheaper domestic fuels. An electric vehicle can be fuelled by 100 per cent Australian energy, and that energy is becoming cleaner every day. Road transport can and must be electrified, yet nine out of 10 of every car sold in Australia extends our dependence on imported fuels. We need policies that drive transport electrification across the country, including in regional areas for those living in apartments and in trucking.

This is not about isolationism. Australia's energy story has always been one of partnership. Early gas production relied upon foreign capital and expertise. When Japan's nuclear industry shut down in the 2010s, it was Australian gas that helped keep the lights on. We have resources to spare, just as our trade partners do. We are stronger and safer because of these interdependencies, but we must also be clear: myopic foreign profit cannot come before Australian households or Australian industry, and it must not come before our long-term energy security. We have weathered too many global energy shocks. We have the benefit of hindsight. Our policies should reflect that hard-won wisdom.

Finally, we must continue to focus more on those parts of our community that are currently not well-supported through this energy transition. In particular, I speak to the renters and apartment dwellers in Wentworth—60 per cent of my community live in apartments and 40 per cent rent. Those are big numbers. Many of them are passionate about the climate transition and the need to clean our energy grid, but do not have the tools to be able to do so. I appreciate the government has introduced things like the three hours of clean energy in the day, but the challenge is that many apartment dwellers and renters do not have the smart-meters to take advantage of these types of policies, and so it will not actually benefit them. Those are the ones that we need to support, because we need to make sure that all Australian households thrive and can access clean and cheaper energy through this transition. If we don't then those households will lose faith that this transition is going to support them and not just others.

Emma Comer (Petrie, Australian Labor Party) Share this | Link to this | Hansard source

I thank the member for Kooyong for bringing up this important matter. It gives me the opportunity to talk about one of my favourite topics: how the Albanese Labor government is simultaneously helping ease cost-of-living pressures whilst also supporting Australia's energy transition.

The people in my community and right across Australia are feeling the pinch of the cost of living. One of the most important ways that we can help households right now is bringing in measures that lower their power bills. In Australia we are blessed with the best sun and the best wind in the world—I might add, the best beaches too—and now we're putting them to work to bring down the energy bills. More than one in three homes in the country have solar panels installed, one of the highest rates on the planet. Australia is leading the world in rooftop solar and Queensland leads Australia with one in two households with solar. That means Queensland families are not just part of the clean energy transition; they are driving it. Go Queensland!

Households are generating their own power, lowering their electricity bills and contributing to a stronger, more resilient energy grid. Programs like the Cheaper Home Batteries Program are helping families store the solar power they generate during the day and use it when they need it most, further reducing bills and strengthening Australia's energy system. Across Australia more families and small businesses are taking up these opportunities.

One of the very first batteries installed and turned on under this program was right in my electorate of Petrie. I had the pleasure of visiting Rob's home in Bridgeman Downs alongside Minister Bowen to see his battery system in action. For Rob, batteries mean lower power bills and making the most of the solar energy his home already uses and produces. Since the program began in my electorate of Petrie, 1,571 households and local businesses have already taken up the Cheaper Home Batteries Program. Northlakes and Mango Hill lead with 365 batteries installed. Redcliffe and Scarborough in Newport now have 236 installations, and Deception Bay has 144. Suburbs like Clontarf, Margate and Woody Point are also seeing a strong uptake in installations.

These numbers tell an important story. The clean energy transition isn't coming from the cities; it's being led by the families in the suburbs and the communities across Australia who want lower power bills and a secure energy future. We are already seeing the results of this transition. In the last quarter of 2025, Australia reached a historic milestone. For the first time ever, more than half of our electricity came from renewable energy. That shows that clean energy transformation is not just a future ambition; it is happening right now. The summer we just had was a scorcher and, with renewable renewables providing energy to the grid, we have not faced significant issues with reliability or supply. This is despite the naysayers, who think that renewables are less reliable than fossil fuels. The Albanese Labor government has proven that renewables are vital and effective at meeting our energy needs.

Households and communities and businesses are generating more of their own power, strengthening our energy system and helping drive down emissions. And that is not all. The Albanese government is introducing a new regulated electricity market offer, which includes a free three-hour power period during the day, every day. That's three hours of free electricity every single day. We are living in turbulent times, but here in Australia we are responding from a position of strength. Australians have seen the headlines about global fuel disruptions and uncertainty in international markets. It is understandable that people feel concerned, but Australians can be assured our nation is fuel secure. I repeat that to those opposite: our nation's fuel is secure.

Australia is currently above the minimum domestic fuel stockholding obligations and, crucially, those reserves are now stored here in Australia. That wasn't always the case. When the coalition was in government, fuel reserves were stored overseas. This government ensured that the fuel reserves are kept onshore when Australians need them. In times of global uncertainty, that matters. We are seeing disruptions in some areas caused by temporary spikes in demand, not a national supply issue. I want to be clear: Australia continues to meet its fuel stockholding obligations and our fuel reserves are secure. That means Australians can have confidence that the petrol they rely on every day remains available and secure. That is the approach of the Albanese Labor government.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The time for this discussion has now concluded.