Government Proposing Gas Price Cap Until Mid-2025

The federal government’s $12 per gigajoule gas price cap is to be extended to 1 July 2025 when it will be reviewed again. This measure was introduced in December last year for 12 months to bring energy costs down but is to be extended as part of the government’s mandatory code of conduct published today for the final stage of consultation due by May 12. According to EnergyQuest Q4 2022 east coast gas prices averaged almost $18/GJ.

• Suppliers can apply for an exemption to the price cap if they make supply commitments that comply with ACCC and legal requirements. Also, small producers may be exempt if they only supply the domestic market. CS analysts were scathing of the policy saying it was “amateur hour policy making”. Gas producers are opposed to the code of conduct and say it will impact investment in new supply but manufacturers support it.
• There is a push from government backbenchers to increase JobSeeker by 40% to just under $1000/fortnight, which was part of the recommendations made by the Economic Inclusion Advisory Committee. Increases to payments will be announced in the May 9 budget.
• Greens leader Bandt has said that his party won’t support the government’s $10bn Housing Australia Future Fund unless it implements the Greens housing policy, including removing negative gearing, doubling rent assistance and building 225k publicly owned homes. The government needs the Greens to pass legislation in the senate.
• Plans to change the immigration system will be announced by Minister O’Neil at the National Press Club on Thursday. Population growth has been cited by the RBA as potentially adding to inflation pressures.
  - The Australian, Reuters