The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Wayne Swan

Wayne Swan

Deputy Prime Minister and Treasurer

3 December 2007 - 27 June 2013

3 February 2009


Joint Media Release with
The Prime Minister &
Minister for the Environment

Energy Efficient Homes – Ceiling Insulation in 2.7 Million Homes

To support jobs and set Australia up for a low carbon future the Rudd Government will install free ceiling insulation in around 2.7 million Australian homes.

This investment will support the jobs of tradespeople and workers employed in the manufacturing, distribution and installation of ceiling insulation during a severe global recession.

In addition, under the Energy Efficient Homes investment the Solar Hot Water Rebate will be increased from $1000 to $1600 from today and the Low Emissions Plan for Renters rebate will increase from $500 to $1000.

The Energy Efficient Homes investment will:

  • Install ceiling insulation in around 2.7 million Australian homes;
  • Cut around $200 per year off the energy bills for households benefiting from these ceiling insulation programs;
  • Reduce greenhouse gas emissions by around 49.4 million tonnes by 2020, the equivalent of taking more than 1 million cars off the road.

Energy Efficient Homes is a key element of the Government’s $42 billion Nation Building and Jobs Plan to support up to 90,000 Australian jobs over the next two years.

2.7 million Energy Efficient Homes

Insulation is typically the most cost effective way to improve a home’s energy efficiency. Although all newly-built homes must be insulated, many older homes – up to 40 per cent of Australia’s housing stock – remain uninsulated.

This results in many householders paying much more than they need to in energy bills.

Once installed, households could save around $200 per year on their energy bills, as well as improve the comfort and value of their homes.

The Energy Efficient Homes package will modernise Australia’s homes, it will enable almost all Australian homes to be operating at a minimum two-star energy rating by 2011.

For a time-limited period of two and a half years, from 1 July 2009, owner-occupiers without ceiling insulation will be eligible for free product and installation (capped at $1,600) simply by making a phone call.

As an interim arrangement, from today and until 30 June 2009, eligible owner-occupiers who install ceiling insulation in their homes will be able to seek reimbursement (up to $1,600) after the program commences. The Government estimates 2.2 million owner-occupied home will benefit from this program.

Many of Australia’s most vulnerable households are renters, who do not own their own home. To help these households lower their emissions and save money on energy bills, the Government will also double the rebate available under the Low Emissions Plan for Renters for landlords to install insulation in their rental properties – from $500 to up to $1,000 – from today until 30 June 2011. The Government estimates 500,000 rented homes will benefit from this program.

The Energy Efficient Homes investment also increases the Government’s Solar Hot Water Rebate from $1,000 to $1,600 from today until 30 June 2012. This rebate will not be means-tested.

Under this Energy Efficient Homes package, homeowners will be able to access either the insulation program or the solar hot water rebate.

These investments will ensure that the maximum number of Australians – both homeowners and renters – will have access to practical measures that help them to reduce their energy use and save on energy bills prior to the introduction of the Carbon Pollution Reduction Scheme.

As well as supporting jobs during a severe global recession the Energy Efficient Homes investment delivers on the Government’s commitments in the Carbon Pollution Reduction Scheme White Paper to ensure all households receive support to take practical action to reduce energy use and save on energy bills.

3 February 2009

Fact Sheets

For more information refer to the following fact sheets: