As Australians grapple with soaring living costs and inflation, the government is stepping in to offer some relief in these challenging times. One initiative is a $700 cost-of-living cash injection available to residents of Western Australia (WA). This attempt is part of a broader $492 million relief plan intending to help households manage rising expenses, particularly energy bills.
The $700 Electricity Credit: A Lifeline for WA Households
All households in WA are eligible for a $700 electricity credit, delivered in two payments of $350 each, with the first arriving in the July-August billing cycle and the second scheduled for December-January.
The idea is to cushion the blow of energy costs during the coldest and hottest months, when utility bills tend to spike. The credit will be automatically applied to electricity accounts held with Synergy or Horizon Power, making the process hassle-free.
For businesses, the government is also offering relief small businesses with annual electricity consumption below 50-megawatt hours are eligible for a $725 rebate. With electricity prices rising, this support is crucial for both households and business owners.
How Other States Are Easing the Pressure
It’s not just WA offering relief. Across Australia, various states have introduced their own support programs. For instance, Queensland households are set to receive $1,000 off their electricity bills, while South Australia is providing $243.90 payments to concession holders. These state-specific measures are designed to ease pressure on Australians as inflation drives up the cost of necessities like food, fuel, and utilities.
More Than Just Rebates: Easy Ways to Save Hundreds Each Month
While the $700 credit will provide a noticeable reduction in your utility bill, there are additional strategies that could help you pocket over $700 in savings each month.
- Loan Refinancing:
Refinancing your mortgage or other loans could shave off significant costs. On a $500,000 mortgage at 6.28%, reducing the interest rate by 0.3% could save you $97 per month. Plus, consolidating high-interest loans like car or personal loans into your mortgage can lead to even bigger savings.
- Switch to Fortnightly Mortgage Payments
Did you know paying your mortgage fortnightly instead of monthly can save you money? Fortnightly payments lead to 26 payments a year rather than 12, helping you pay off the principal faster and save on interest. This simple change could save $510 per month on a typical $500,000 loan.
- Cancel Unused Subscriptions
Many of us have unused or forgotten subscriptions draining our accounts every month, whether it’s a gym membership, streaming service, or magazine. Cutting out these unnecessary expenses could save you between $7 and $70 per month.
- Take Advantage of Loyalty Programs and Gift Cards
Australians are sitting on approximately $1.4 billion in unused gift cards, which averages to $198 per person. Whether it’s loyalty points, gift cards, or frequent flier miles, these resources can be a handy way to reduce your monthly spending.
- Shop Smarter Online
Online shopping can be a great way to avoid impulse purchases and save on unnecessary travel expenses such as parking charges and fuel consumption. By avoiding store visits and taking advantage of free delivery, loyalty points, and online discounts, you could save $58.50 per month on groceries alone.
- Other Quick Wins for Your Budget
Repel the Loyalty Tax: Many utility and insurance providers offer better deals to new customers. Rather than automatically renewing your contracts, compare rates and negotiate for better deals. Even a small $20 discount per year on services like internet, insurance, and energy can add up to notable savings over time.
Unclaimed Tax Deductions: According to H&R Block, many Aussies miss out on tax deductions that could add $237 per year back to their accounts. Be sure to claim for work-from-home expenses, self-education, and other eligible deductions.
How to Claim the $700 Rebate
For those in WA, claiming your electricity credit couldn’t be easier. If you’re with Synergy or Horizon Power, the rebate will be applied automatically. For others, applications can be made through Revenue WA. Small business owners should apply through the Small Business Development Corporation.
Whether it’s the $700 government rebate or strategic personal savings, there are multiple ways to lighten the load on your wallet this month. By combining the government support with smart budgeting and savings tips, you could save well over $1,000 enough to put toward your mortgage, a holiday, or just easing the day-to-day financial pressure.
