Queenslanders cashing in $1000 energy rebate 'won't worsen inflation'

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A loophole that allows Queenslanders to cash in on the state’s $1000 electricity credit announced by the premier last week will not worsen inflation, the treasurer has insisted.

Last week, Premier Steven Miles announced all Queensland households would receive a $1000 credit on their electricity account in one lump sum from July this year to combat cost-of-living pressures.

The lump sum credit means most households will not pay a cent on their first power bill after July 1, and possibly not on their following bill either.

The Queensland government announced a $1000 energy credit for all households from July 1.

However, a loophole has been exposed wherein households are able to cash out any credit on their account if they change their electricity provider.

Treasurer Cameron Dick today said most people would want to make sure they didn’t have to pay for electricity.

“There’s obviously got to be processes and procedures when people change retailers or when they move their house, that’s always been the case in Queensland but I think Queenslanders know this money comes off their power bill and then they can use that however they wish, use it on their account as a credit or use in in a different way rather than their power bill,” Dick said.

He denied the loophole would have an inflationary effect.

“We’ve now got that evidence that (last year’s rebate) hasn’t contributed to inflation in fact it’s decreased inflation in Queensland, not just for electricity, reduced by almost 10 per cent, but our inflation for the year to the end of March was lower than the national average at 3.4 per cent and the single biggest contributor to reducing inflation in Queensland was our electricity rebate of $550.”

The initiative will cost the budget $2.5 billion to be funded from coal mining royalties.