Australia’s government is seeking savings for its December budget update, and The Australian Financial Review reported Treasury is preparing possible reductions to the home battery discount as inflation remains elevated.
Minister for the Environment and Water Murray Watt said Nov. 7 that savings were still under discussion. Prime Minister Anthony Albanese said Nov. 8 that budget decisions would be announced once made. The government has not announced a new cut to the battery program.
The program gives eligible households, businesses and community organizations around 30% off solar-connected battery purchases. The government announced an expansion on Dec. 13, 2025, raising the projected cost from A$2.3 billion to A$7.2 billion over fiscal years 2025–26 through 2028–29. Revised rules for battery sizes and the discount took effect May 1, 2026. The Department of Climate Change, Energy, the Environment and Water says the discount will decline over time through 2030 as battery prices fall.
Government funding covers the discount, which reduces buyers’ upfront costs. The department also says battery storage can reduce demand on the wider electricity grid. Albanese said Nov. 8 that 600,000 households and small businesses had benefited from the program.
The budget discussion comes amid elevated inflation. The Australian Bureau of Statistics said consumer prices rose 4.3% in the 12 months to September, compared with 4.0% in August. The Reserve Bank of Australia raised its cash rate target to 4.85% on Nov. 3. Treasurer Jim Chalmers has said the budget can help address inflation, though it is not the main cause of higher prices.
The government announced a phased reduction in the electric vehicle fringe benefits tax concession in May 2026, estimating A$1.7 billion in savings over five fiscal years from 2025–26. The opposition Liberal and National parties propose scrapping both the vehicle concession and the battery program. They estimate their broader package would save A$31 billion over four fiscal years, from 2028–29 through 2031–32; the two incentives are only part of that package.
October consumer price index figures are scheduled for Nov. 25. The Reserve Bank’s next rate update is scheduled for Dec. 8.
