The Claim
“Cut funding for the Energy Efficiency Program (which was compulsory for large electricity consumers).”
Original Sources Provided
✅ FACTUAL VERIFICATION
TRUE. The Abbott government did cut administrative funding for the Energy Efficiency Opportunities (EEO) program in the December 2013 Mid-Year Economic and Fiscal Outlook (MYEFO). According to the SBS report, "funding for the Energy Efficiency Opportunities program will terminate from July" 2014 as part of the government's moves to abolish the carbon tax [1].
The program was established under the Howard government in 2006 through the Energy Efficiency Opportunities Act 2006, making it mandatory for companies using large amounts of electricity, gas, or diesel to identify and implement cost-effective energy savings [1][2]. The 2013-14 MYEFO officially announced the funding termination, scheduled to take effect from July 1, 2014 [3].
Missing Context
The claim omits several important contextual factors:
The program was actually created by a Coalition government: The EEO program was established by the Howard government in 2006 as part of a secret deal with big industry to avoid increasing the 2010 Mandatory Renewable Energy Target. Energy Minister Ian Macfarlane, who was involved in that original agreement, was reportedly supportive of retaining a streamlined version of the scheme [2].
The program continued in legislated form: As the Energy Efficiency Council noted, "The government haven't scrapped the Energy Efficiency Opportunities program, because it's legislated, but they've cut funding to administer the program" [1]. The program's website stated it would "continue in its present form until June 30, 2014" while the government consulted on how to optimise energy efficiency policy through its energy white paper [1].
The claimed rationale: The government presented this as part of broader deregulation and "red tape" reduction efforts, along with abolishing the carbon tax. Industry lobby groups including APPEA (oil and gas), the Property Council of Australia, and Manufacturing Australia had campaigned against the program's compliance requirements [2].
Program effectiveness: Independent reviews found the program delivered significant results. The official "end of first cycle" review by ACIL-Tasman concluded: "The EEO Program is additional, complementary [to a carbon price] and an appropriate policy for addressing market failure relating to the availability and use of information through improved energy efficiency management" [2]. Participants achieved annual energy bill savings estimated between $250 million to $1.2 billion, with average payback periods under two years [2].
Source Credibility Assessment
The original source is SBS News, a reputable Australian public broadcaster. The article is an AAP (Australian Associated Press) syndicated news report from December 17, 2013. SBS News is generally considered a credible mainstream news source with no significant partisan bias. The article accurately reported on the MYEFO funding cuts and included quotes from both the Energy Efficiency Council (industry body) and referenced the government's official position [1].
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government energy efficiency program history comparison"
Finding: The EEO program was actually created under a Coalition (Howard) government, not Labor. However, Labor governments have had their own energy efficiency controversies. The Rudd government's Home Insulation Program (part of the Energy Efficient Homes Package) was announced in February 2009 as part of the $42 billion National Building and Jobs Plan, but became "a classic case of policy failure" with implementation problems and safety issues [4].
Labor maintained the EEO program throughout their 2007-2013 tenure without cutting its funding. The program had bipartisan support for its first seven years of operation. When the Coalition cut the program's funding in 2013, they were effectively dismantling their own party's creation.
More broadly, both parties have historically supported various energy efficiency measures. The Fraser government first introduced energy efficiency policies in 1979 in response to the oil crisis [5]. Both Labor and Coalition governments have implemented and repealed different energy efficiency programs based on their policy priorities.
Balanced Perspective
While the claim that funding was cut is factually accurate, the full story reveals more complexity:
Criticisms of the funding cut:
- The Energy Efficiency Council called the cut a "surprise" that created "huge uncertainty in the sector" [1]
- Industry participants and staff reportedly welcomed the program as a means of getting improved access to decision makers and resources [2]
- The independent ACIL-Tasman review had recommended continuing the program, finding it delivered substantial energy savings at reasonable cost [2]
- Alan Pears, who helped develop the program, noted that the claimed compliance costs (up to $500,000 per business) were significantly overstated—the average was under $40,000 per year, while participants saved between $250 million to $1.2 billion annually [2]
Government justification:
- The Abbott government positioned this as part of their election commitment to reduce "red tape" and deregulate the economy
- The program was linked to the carbon pricing mechanism, which the government had a mandate to abolish
- Industry lobby groups had actively campaigned against compliance requirements [2]
- The government stated they were consulting on how to "optimise energy efficiency policy" through the energy white paper process [1]
Key context: This was not simply an attack on environmental programs—it was the Coalition dismantling their own party's program that had been maintained by the previous Labor government. The Howard government created the EEO program in 2006; Labor kept it running through 2007-2013; the Abbott government cut its funding in 2013. This pattern of each government changing the previous government's policies is common in Australian politics regardless of party.
TRUE
7.0
out of 10
The claim is factually accurate. The Abbott government did cut administrative funding for the Energy Efficiency Opportunities program in December 2013, with the funding termination scheduled for July 2014. However, the claim lacks context: (1) the program was created by the Howard Coalition government, not Labor, and had been maintained by Labor for six years without cuts; (2) the program itself remained legislated—only administrative funding was cut; (3) the program had demonstrated cost-effectiveness with returns far exceeding compliance costs; and (4) independent reviews had recommended its continuation.
Final Score
7.0
OUT OF 10
TRUE
The claim is factually accurate. The Abbott government did cut administrative funding for the Energy Efficiency Opportunities program in December 2013, with the funding termination scheduled for July 2014. However, the claim lacks context: (1) the program was created by the Howard Coalition government, not Labor, and had been maintained by Labor for six years without cuts; (2) the program itself remained legislated—only administrative funding was cut; (3) the program had demonstrated cost-effectiveness with returns far exceeding compliance costs; and (4) independent reviews had recommended its continuation.
📚 SOURCES & CITATIONS (5)
-
1
Funds cut for mandatory efficiency program
The government has cut administrative funding for an energy efficiency program that is mandatory for big businesses.
SBS News -
2
Energy savings jettisoned by Abbott government, big business
If you owned a business required to invest in a service that cost you less than $40,000 each year but generated savings of half a million dollars or more annually, would you complain?
The Sydney Morning Herald -
3
Repeal of the Energy Efficiency Opportunities Program
The Federal Government has introduced legislation which, if passed, will terminate the Energy Efficiency Opportunities Program and remove the mandatory requirement for large energy using businesses to assess and report on opportunities to improve energy efficiency.
Allens Com -
4
The Home Insulation Program: A Classic Case of Policy Failure?
The Home Insulation Program (HIP) by Prime Minister Rudd's government in Australia was seen as a policy failure in both the formal reviews and scholarly findings. In this context, it is unsurprising that the general public perception of, and the
Academia -
5
Australia's record on energy efficiency has been woeful for decades
World
The Times
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.