The budget will include $150 energy rebates for millions of households, aimed at alleviating cost-of-living pressures amidst a politically charged atmosphere.

Households and about one million small businesses will automatically receive an additional A$150 rebate on their electricity bills in quarterly installments.

Treasurer Jim Chalmers is set to present his fourth federal budget on March 25, 2025, focusing on cost-of-living measures as Prime Minister Anthony Albanese's government prepares for a potential election.

Previously, the Albanese government distributed A$3.5 billion in energy bill relief to combat inflation and rising living costs affecting around 27 million Australians.

This energy relief measure is expected to cost the budget A$1.8 billion and reduce electricity expenses by approximately 7.5%.

Critics argue that the budget lacks substantial reform, suggesting that current spending measures may not adequately address long-term economic challenges.

Chalmers will address energy price relief and cost of living issues, with the budget being delivered just before the elections, which are expected to occur by mid-May.

Finance Minister Katy Gallagher acknowledged the budget's political timing, emphasizing that it reflects the government's priorities and continues previous budgets focused on repair, relief, and reform.

The government plans to extend the power bill rebate until the end of 2025, further supporting households and small businesses facing high living expenses.

Despite a February poll indicating that most Australians favor a change in government, Labor aims to improve its standing in opinion polls ahead of the federal election.

The budget is viewed as a critical opportunity for Labor to solidify its financial relief message and build voter trust in its economic management.

Key initiatives in the budget also include an $8.5 billion investment in Medicare to enhance health services, reflecting the government's commitment to improving public welfare.