Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025

Administered by Department of the Treasury

Legislation au F2025L01392 In force Legislative Instrument

Legislation content

 

EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Productivity, Competition, Charities and Treasury and Parliamentary Secretary to the Treasurer

Federal Financial Relations Act 2009

Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025

Section 15E of the Federal Financial Relations Act 2009 (the Act) provides that the Minister must determine that an amount specified in the determination is to be paid to a State, the Australian Capital Territory or the Northern Territory (States and Territories) for the purpose of making a grant of financial assistances for the purpose of expenditure in accordance with the temporary energy bill relief agreement. 

The purpose of the Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025 (the Determination) is to specify amounts to be paid to each of the States and Territories for the 2022-23 and 2023-24 financial years.

Under the Intergovernmental Agreement on Federal Financial Relations (the IGA) and the Act, the Commonwealth provides payments to the States and Territories to support state service delivery of economic and social reforms. The details of the funding arrangements as they relate to support for the delivery of temporary and targeted relief from high energy bills for households and small businesses are set out in a temporary energy bill relief agreement entered into between the Commonwealth and one or more of the States and Territories.

Advance payments in respect of temporary energy bill relief were made throughout the financial year based on estimates of each jurisdiction’s anticipated entitlement for that year. Any adjustment between the advances paid to a jurisdiction and the jurisdiction’s determined entitlement will be reconciled in the first practicable subsequent financial year.

The IGA and the temporary energy bill relief agreements were subject to extensive consultation with the States and Territories and were signed by all jurisdictions. The agreements are available on the website of the Council on Federal Financial Relations. Ongoing consultation with the States and Territories on federal financial relations occurs regularly. 

Details of the Determination are set out in Attachment A.

The Determination is a legislative instrument for the purposes of the Legislation Act 2003. In accordance with subsection 15E(3) of the Act and subsection 44(1) of the Legislation Act 2003, the instrument is not subject to disallowance. In accordance with subsection 54(1) of the Legislation Act 2003, the Determination is not subject to sunsetting. The Determination is exempt from disallowance and sunsetting on the grounds that the Determination is part of an intergovernmental scheme and gives effect to agreements between the Commonwealth and each of the States and Territories. The Determination’s operation is effectively mechanical in that it simply details financial assistance to be provided to a State or Territory based on that State or Territory having satisfied the necessary agreed criteria.

The Determination commenced the day after it was registered on the Federal Register of Legislation.

A statement of Compatibility with Human Rights is at Attachment B.

 

 

ATTACHMENT A

Details of the Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025

Section 1 – Name

This section provides that the name of the instrument is the Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025 (the Determination).

Section 2 – Commencement

This section provides that the Determination commences the day after it is registered on the Federal Register of Legislation.

Section 3 – Authority

This section provides that the Determination is made under the Federal Financial Relations Act 2009 (the Act).

Section 4 – Definitions

This section provides definitions for the purposes of the Determination.

Section 5 – Temporary energy bill relief payments for 2022-23

This section sets out that the amount required to be paid by the Commonwealth to each State and Territory in respect of the 2022-23 financial year is nil. Funding was not provided in relation to the 2022-23 financial year as there were no energy bill relief agreements in relation to that financial year. The Minister has still determined an amount, being nil, for the 2022-23 financial year as a determination is required under section 15E of Act.

Section 6 – Temporary energy bill relief payments for 2023-24

This section sets out the amounts required to be paid by the Commonwealth in respect of the 2023-24 financial year to each State and Territory in accordance with the energy bill relief agreements.

The amount of financial assistance payable to New South Wales, for the 2023-24 payment year, will be determined at a later date. The Determination will be amended to specify the amount payable to New South Wales once that amount has been finalised.

Section 15F of the Act provides that, subject to the temporary energy bill relief agreements, the total amount of financial assistance payable to the States and Territories for the 2022‑23 and 2023‑24 financial years is $1.5 billion. Noting this amount is subject to the temporary energy bill relief agreements, the total amount determined is less than $1.5 billion due to the opt-in and demand-driven nature of the program supported by the agreements. Further, the total amount in the Determination does not include the amount payable to New South Wales for the 2023-24 payment year, as New South Wales has not yet finalised payments under this program. The total amount will be amended to include this, once determined.

ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025 (the Determination) is to specify amounts to be paid to each State, the Australian Capital Territory and Northern Territory for the 2022-23 and 2023-24 financial years in accordance the temporary energy bill relief agreement. The payments are made for the purpose of supporting the delivery of temporary and targeted relief from high energy bills for households and small businesses.

Human rights implications

This Legislative Instrument promotes the right to an adequate standard of living, including food, water and housing under Article 11 of the International Covenant on Economic, Social and Cultural Rights.

The right to an adequate standard of living provides that Australia must take appropriate steps towards the realisation of this right in its jurisdiction, and that the relevant standard must be continuously improving. This legislative instrument improves the standard of living in Australia by supporting temporary and targeted relief on energy bills for eligible households and small businesses. This will assist in enhancing the welfare of Australians, including by reducing or mitigating the impact of rising energy prices.

Conclusion

The Legislative Instrument is compatible with human rights because it promotes the right to an adequate standard of living.

Overview

The Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025 was enacted to provide financial assistance to States and Territories for the purpose of delivering temporary energy bill relief to households and small businesses. This legislative instrument was introduced under section 15E of the Federal Financial Relations Act 2009, with the objective of specifying the amounts to be paid to each State, the Australian Capital Territory, and the Northern Territory for the 2022-23 and 2023-24 financial years. The determination is made by the Minister, who is required to specify an amount to be paid to each jurisdiction in accordance with the temporary energy bill relief agreements. This process ensures that the payments align with the intergovernmental agreements and support the delivery of targeted relief from high energy bills. The Determination is not subject to disallowance or sunsetting, as it is part of an intergovernmental scheme and gives effect to agreements between the Commonwealth and the States and Territories. The Determination commenced on the day after it was registered on the Federal Register of Legislation. This legislative instrument promotes the right to an adequate standard of living by providing targeted relief on energy bills for eligible households and small businesses, thereby enhancing the welfare of Australians and mitigating the impact of rising energy prices.

Scope and Application

The Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025 applies to the Commonwealth, States, and Territories of Australia, specifying the financial assistance to be provided to the States and Territories for temporary energy bill relief for households and small businesses in the 2022-23 and 2023-24 financial years. This determination is made under Section 15E of the Federal Financial Relations Act 2009, which mandates that the Minister must specify the amounts to be paid to the States and Territories in accordance with the temporary energy bill relief agreements. The Determination is not subject to disallowance or sunsetting, as it is part of an intergovernmental scheme that gives effect to agreements between the Commonwealth and each of the States and Territories. The total amount of financial assistance is limited to $1.5 billion for the two financial years, subject to the terms of the agreements. This instrument promotes the right to an adequate standard of living by supporting relief from high energy bills, thus improving the welfare of Australians.

Key Provisions

The Federal Financial Relations (Temporary Energy Bill Relief Payments) Determination 2025 (section 2) is a legislative instrument made under section 15E of the Federal Financial Relations Act 2009 (the Act). It specifies the amounts to be paid to the States and Territories for the 2022-23 and 2023-24 financial years in accordance with the temporary energy bill relief agreements. For the 2022-23 financial year, no payments are made as there were no energy bill relief agreements for that year (section 5). However, for the 2023-24 financial year, specific amounts are set out for each jurisdiction, with the amount for New South Wales to be determined at a later date and included in an amended Determination (section 6). The Determination imposes specific obligations on the Commonwealth to make financial payments to the States and Territories. The payments are to be made in accordance with the temporary energy bill relief agreements, which detail the funding arrangements for supporting households and small businesses affected by high energy bills (section 15E). The amounts specified in the Determination are based on the criteria set out in these agreements, and any adjustments between advance payments and the final determined entitlements will be reconciled in the subsequent financial year (section 15E). The Determination also outlines that the total amount of financial assistance payable to the States and Territories is subject to the terms of the temporary energy bill relief agreements (section 15F). Breaches of the obligations under this Determination could lead to civil or criminal consequences. While specific offences and penalties are not detailed in the Determination, breaches of agreements or failure to comply with legislative requirements could potentially result in legal actions. However, the primary enforcement mechanism appears to be the reconciliation of any discrepancies in the following financial year, as outlined in the Determination (section 15E). Additionally, the Determination is exempt from disallowance and sunsetting due to its nature as part of an intergovernmental scheme (subsection 54(1) of the Legislation Act 2003).

Legal classification tags

Area of Law
Environmental Law
Finance & Banking Law
Instrument
Statutory Instrument
Concepts
Definitions & Interpretation
Commencement Provisions
Licensing & Registration
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.