The Federal Budget dropped on the 12th of May. If you’ve tried to make sense of it, you’ve probably found there is a lot of noise. Most of the headlines were about tax cuts and housing.
Buried in the detail is a stack of changes that matter if you’re thinking about solar, a battery, an EV or any other home upgrade.
Here’s what actually changed, what stayed the same and what it means for homeowners in Sunbury, Gisborne, Woodend and the wider Macedon Ranges.
The Big Picture
This budget focused on continuing what’s already working and setting tangible goals.
Here’s where we’re at:
- Over 370,000 home batteries have been installed through The Cheaper Home Batteries Program since July 2025.
- Over 4 million Australian households have solar
Moving forward, the next goals are:
- 2 million households to have a battery by 2030
- $40 million committed for more EV charging stations nationally
- $97.2 million for a new national body to standardise how your solar, battery and EV interact with the grid
Home Batteries: The Program Keeps Running
The good news: The Cheaper Home Battery Program is continuing without any more major changes (for now).
$14.6 million from the budget was allocated for batteries, with a focus on compliance. Quality standards for home batteries in Australia remains a high priority as the program grows.
What this means for you:
- The rebate structure is staying the same
- Still delivered through the STC (Small-scale Technology Certificate) system
- No income test. No property value test.
- Your installer handles all the paperwork and takes it off your quote
One rule worth knowing: The battery rebate can only be claimed once per property.
That means the battery you install now should be sized for where you want to end up, not just what you need today. At Bluegum, we talk through this with every customer before they commit.
EV Chargers: There Is a Window Here
This is the biggest change in the budget for Bluegum customers.
Until now, eligible electric vehicles have been fully exempt from Fringe Benefits Tax (FBT). That means people buying an EV through a novated lease have paid significantly less than they would for a petrol car. Now the full exemption is being wound back.
Here’s the timeline:
- From now until 31 March 2027: Full FBT exemption continues for all eligible EVs
- 1 April 2027 to 31 March 2029: EVs under $75,000 keep the full exemption. EVs over $75,000 move to a 25% FBT discount only.
- From 1 April 2029: All EVs under the luxury car tax threshold move to a 25% discount
Already in a novated lease with an EV? Your existing arrangement is protected for the life of the deal. The changes only affect new arrangements.
If you’ve been sitting on the fence about an EV, the window for the full exemption is still open. For the home EV charger side, getting set up sooner means you’re charging at home rather than hunting for a public charger.
Solar: Business as Usual
No new federal solar rebates were announced. The existing programs are continuing.
Here’s a quick summary of what’s still available:
- STCs (Small-scale Technology Certificates): Federal scheme covering solar. No income test, no application. Your installer handles it.
- Solar Victoria: Additional rebate for eligible Victorian households. Household income limit of $210,000 in one of the last two financial years, with a property value under $3 million. Note: The eligibility requirements for Solar Victoria is changing. The threshold will be reducing from $210,000 to $150,000. We will be releasing a blog post that covers the changes soon.
- Both programs step down in value every year by design.
That last point matters. Waiting costs money.
We’ve had customers lose nearly $8,000 in rebate value between when they first got a quote and when they finally booked the job. Same product, same house, same installer. Just later.
Heat Pump Hot Water: Still One of the Best Stacks Going
For Victorian homeowners, a heat pump hot water upgrade is one of the most stacked rebate opportunities available right now.
Here’s why:
- STCs apply to heat pump hot water installs (Federal, no means test)
- VEECs (Victorian Energy Efficiency Certificates) also apply to the same job
- Stack both on one install, and the combined savings are significant
- Solar Victoria also covers heat pump hot water for eligible households
- Go with an Australian-made model like the Reclaim units we install, and there’s a small extra top-up on the Solar Victoria rebate
One thing to watch: VEECs move around more than STCs. If you’re working from an old quote, the numbers may have shifted. We always quote on real values.
The One Thing to Understand About Timing
Every rebate program for home electrification in Australia is designed to decrease over time. As the technology gets cheaper, the government tapers off the support.
Here’s what that looks like in practice:
- STCs decrease each calendar year
- VEECs fluctuate and have been trending down
- Solar Victoria steps down each financial year
- EV FBT full exemption runs until March 2027 for vehicles over $75,000
You don’t have to do everything at once.
Plenty of our customers start with solar, add a battery the following year and replace gas appliances after that. The key is starting somewhere rather than waiting for a perfect moment that keeps costing you money every time it comes around.
The Bottom Line
The 2026 Federal Budget doesn’t overhaul the landscape for home electrification, but it confirms the direction of travel: batteries, solar and EVs are where government support is going.
The programs are still strong. But every year that passes, they’re worth a little less. If you’ve been thinking about any of this, now is a better time than next year.
Got questions about the next electrification step for your home? Book a free consult with our team today
Frequently Asked Questions
Does the budget change anything about the Cheaper Home Batteries Program?
Not at this stage. The $14.6 million allocated is for compliance and inspections, keeping the program running properly. The rebate itself continues with no income test or property value test. The one rule to know: it can only be claimed once per property, so size your battery correctly from the start.
How do the EV tax changes affect me if I'm looking at an EV under $75,000?
EVs under $75,000 keep the full FBT exemption until 31 March 2029, as long as your arrangement starts before that date. There’s still a meaningful window. From April 2029, all eligible EVs move to a 25% FBT discount rather than a full exemption.
Does the budget affect Solar Victoria rebates?
Solar Victoria continues to offer a panel rebate for new solar installs and a heat pump rebate for hot water upgrades. The household income limit remains $210,000 in one of the last two financial years, with a property value under $3 million until June 30. What doesn’t change is that Solar Victoria steps down in value each financial year, so waiting still costs you.
Are STCs and VEECs still available?
Yes. STCs cover solar, batteries and heat pump hot water nationally with no means test. VEECs cover hot water and heating or cooling upgrades in Victoria, also with no means test. For a heat pump hot water upgrade you can stack both on the same job. Both decrease over time, so current values are the best you’ll get.
If you want to know exactly what you’re eligible for and what it would look like for your home, our team will walk you through it at no cost. Book a free consult.