Australia to Provide 270,000 Won Energy Subsidy to All Households Including the Wealthy

Universal Welfare Emerges to the Surface

Uluru, Australia

The Australian federal government will provide an energy subsidy of 270,000 won to every household nationwide. This is to alleviate the burden of living expenses caused by soaring energy prices.

According to Australian AAP news agency on the 15th (local time), the Australian government announced in the 2024?2025 fiscal year budget (July 2024?June 2025) that it will distribute an energy subsidy of 300 Australian dollars (approximately 272,000 won) to all households.

In the 2023?2024 fiscal year (July 2023?June 2024), the Australian government introduced an energy bill reduction policy for about 5 million households based on income, but in the next fiscal year, it decided to provide subsidies to all households regardless of income. Accordingly, every household will receive an energy bill reduced by 75 Australian dollars (approximately 68,000 won) quarterly.

The Australian government’s large-scale energy subsidy support is due to the sharp rise in natural gas prices and the decline in operation rates of aging coal-fired power plants, causing supply shortages and a surge in electricity prices. According to the Australian Energy Regulator (AER), electricity prices in Australia have risen by more than 20% for two consecutive years.

Some critics question the necessity of such universal welfare benefits, as subsidies are provided to all households, including 'billionaires,' without income criteria. When Prime Minister Albanese was asked on a morning current affairs program whether Gina Rinehart, Australia's richest person, also needs the subsidy, he emphasized the necessity of universal welfare by saying, "Gina also benefits because she pays income tax."

The opposition supports the government's relief measures but expressed concerns that excessive welfare policies could fuel inflation. They also criticized the budget as a populist measure ahead of next year's general election. Opposition leader Peter Dutton said in a media interview, "This budget should have focused on easing inflationary pressures and lowering interest rates," adding, "Distributing 300 Australian dollars to every household will have little effect."