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More SA businesses to get energy rebate as loophole closes

The state government has closed a loophole that would have otherwise left approximately 38 per cent of SA small businesses unable to claim promised energy bill relief.

Sep 29, 2023, updated Sep 29, 2023

A last-minute fix to ensure businesses on “embedded networks”, such as those in shopping centres and therefore do not have their own electricity meter, will benefit thousands of owners according to the state government.

It follows pressure from peak body Business SA which recently ran a poll and found 38 per cent of small businesses did not have their own electricity meter and therefore would not have received the $650 rebate.

The rebate is part of the state government’s energy bill relief plan, which is expected to benefit 420,000 households and 86,000 small businesses.

Treasurer Stephen Mullighan said the government listened to Business SA’s concerns and was “liaising with interstate jurisdictions and the Commonwealth to determine how best to negotiate the administrative rollout”.

“The Malinauskas Government recognises that small businesses on embedded networks are experiencing the same difficulties with energy costs as other small businesses that are individually metered which is why we are also extending energy bill relief to these businesses,” Mullighan said.

Business SA CEO Andrew Kay said rising energy costs were “among the biggest concerns for South Australian businesses”.

“This rebate was supposed to provide some relief for small businesses, and many had realised they would not receive any benefit,” he said.

The peak body pointed to its December quarter 2022 survey of business expectations, which found more than 81 per cent of businesses experienced electricity cost increases of up to 29 per cent in the preceding 12 months.

“Businesses are operating in uncertain times,” Kay said.

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“If businesses are promised assistance, it should be delivered. We are very pleased the State Government responded quickly to our call for resolution.”

From today, energy retailers will begin applying the $500 rebate to South Australian residents who receive Family Tax Benefits.

Mullighan said it was the first time those recipients would be eligible for energy bill relief. Others eligible to receive the assistance include people receiving a Carer Allowance and some holders of Department of Veteran Affairs cards who are not currently eligible for the existing energy concession.

The rebate will be paid as a quarterly amount of $125, with around 200,000 additional residents expected to benefit from the assistance.

“This milestone significantly expands the number of South Australians able to receive energy relief,” Mullighan said.

“It means a record number of households won’t have to dig as deep during what is already a tough economic climate.

“We have targeted our funding to where it’s needed most, and eligible South Australians will certainly notice the difference when their next bill arrives.”

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