**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 claim omits several important contextual factors:
1. **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].
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].
3. **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].
4. **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].
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].
**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].
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 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.
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.