Electricity bills have become a major concern for many small businesses across Australia. With operating costs already on the rise, the government’s 2025 energy relief package has come at the right time.
This article explains what the relief package offers, who’s eligible, how to claim it, and what extra steps small businesses can take to lower electricity costs and stay energy efficient—especially if you’re operating in Western Sydney or the Penrith area.
1. What Is the 2025 Energy Relief Package?
In the 2025 Federal Budget, the government announced a $3.5 billion national energy relief plan. One of its key features is a $325 electricity bill rebate for around 1 million small businesses across the country.
How It Works:
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The rebate is automatically applied to electricity bills—no need to apply.
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Payments are spread across the year in instalments.
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The program is co-funded by the federal and state governments.
💡 Tip: Check your upcoming energy bill—you might already see the rebate starting from July 2024 onwards.
2. Who Is Eligible for the Rebate?
To qualify for the $325 small business rebate, your business must:
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Be on a business electricity tariff (not a residential plan)
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Use electricity below a certain threshold per year (depends on the state)
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Be classified as a small customer by your energy provider
In NSW, most businesses using less than 100 megawatt-hours per year are considered eligible.
⚠️ Not Sure?
Contact your electricity provider or visit the NSW Government energy relief page to confirm your status.
3. Do I Need to Apply?
No. The rebate is automatically applied by your energy provider. You don’t need to fill out any forms.
However, if:
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You haven’t seen the rebate applied by mid-2025
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You’ve recently changed providers
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You run your business from home but are on a residential plan
You may need to contact your provider and ask about your eligibility.
4. What If I’m Not Eligible?
Even if you don’t qualify for the rebate, you may still be able to save money through:
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Energy efficiency upgrades
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Solar panel incentives
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Other small business energy grants
💡 Pro Tip: Speak to a Penrith accountant to understand how energy upgrades can also provide tax deductions and long-term cost savings.
5. Other Ways to Lower Your Business Electricity Costs
Whether or not you receive the rebate, here are simple ways to cut back on power use:
✅ Switch to LED lighting
LEDs use up to 75% less power and last longer.
✅ Unplug unused equipment
Electronics on standby still consume energy.
✅ Install timers or smart switches
These reduce energy use outside of business hours.
✅ Use energy-efficient appliances
When upgrading equipment, look for 4+ star energy ratings.
✅ Compare energy plans
Use comparison sites like Energy Made Easy to make sure you’re getting a competitive deal.
💡 Tip: For many businesses in Penrith and Western Sydney, simply switching providers can result in significant savings.
6. Claiming Tax Deductions on Energy Efficiency Upgrades
Investing in energy-saving equipment may also be tax-deductible under the instant asset write-off scheme or temporary full expensing, depending on your eligibility.
Examples:
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Air conditioners
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Commercial refrigerators
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Solar batteries
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Lighting upgrades
A qualified Penrith accountant can help you assess:
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If your energy purchases qualify
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How to correctly claim them at tax time
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What records you need to keep
7. Why It’s Worth Getting Professional Advice
While the rebate is automatic, energy bills can still hurt your cash flow. An accountant can help you:
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Identify hidden energy costs
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Access grants and tax benefits
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Budget more effectively
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Reduce overall operating expenses
Working with a local accountant in Penrith means they understand the market, your suppliers, and the challenges small businesses face in Western Sydney.
Conclusion
The $325 energy rebate in 2025 is a welcome relief for small businesses, but it’s just one piece of the puzzle. By making smart energy choices and speaking to a professional, you can reduce costs now and improve efficiency for the future.
Need help reviewing your energy costs or claiming deductions? Carmody Accounting is here to support local businesses across Penrith and Western Sydney with practical advice that saves money and boosts sustainability.
