'Good for cost-of-living,' Albanese government urged to act now on rental electrification

Describing the current state of electrification policy in Australia as "shortsighted", the federal member for Wentworth Allegra Spender has joined fellow crossbenchers including Zoe Daniel, Dai Le, Helen Haines and David Pocock in calling for the Albanese government to speed up the switch by bringing in two proposed tax changes at the start of the next financial year.

The Albanese government insists it has not vacated the area, including a $1.7 billion package for energy efficiency and electrification in the last federal budget and it is working with state and territories on making energy upgrades more widely available, including for renters.

But Ms Spender has commissioned Parliamentary Budget Office (PBO) modelling based on a tax incentive for landlords to instantly write off the cost of replacing gas appliances for heating, cooling, and cooking with more efficient electrical alternatives. There is also a tax simplification proposed to help install rooftop solar in apartments.

The cost of the two policy changes is less than $200 million over four years, according to the PBO, but Ms Spender said it would be "good for climate and good for cost-of-living".

"It's a modest step, but it's one that is a sensible one that they could do straight away," Ms Spender told The Canberra Times. "The landlord's actually going to save money too. That's the point of this. It's incentivising the landlord, but it's also going to benefit the renter. That is the benefit of doing this.

"There are some state-based schemes that are similar to this which have benefited renters already. But this is more effective and easy to access and administer because it's through the ATO (Tax Office)."

The costings for the two measures show energy bills could be reduced by between $514 and $1594 a year. Ms Spender said changing over appliances under the proposal would not be an excuse for rent hikes.

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With almost one-third of Australians currently renting, Ms Spender is urging the government to put the electrification of rental properties on the agenda of the energy ministers and national cabinet.

"We know we can do this at scale in Australia, but we don't. We're not using all the tools that are in front of us," she said.

"They've come some way, but I know that there are still places where we're building social housing in this country and we're not putting solar on the roofs even when it makes sense to. So we're still being short sighted.

"While the government has put some money in the budget for household electrification, I believe there should be a much more significant investment in household electrification."

The crossbenchers have written to Climate Change Minister Chris Bowen, Assistant Minister for Climate Change Jenny McAllister, and the Treasurer Jim Chalmers to urge the government to adopt the proposals.

Senator McAllister points to the $1.7 billion budget package for energy efficiency and electrification which included $1 billion for reduced rate loans and $300 million for energy upgrades for tenants living in social housing.

She also said the government is finalising the first National Energy Performance Strategy which will include energy efficiency and electrification.

"After 10 years of inaction by the former Coalition government Australians are paying for energy that is literally leaking out of doors and windows," the assistant minister said in a statement.

"We're determined to help make every watt count."

The federal, state and territory energy ministers next meet in Western Australia next month.