Queenslanders will pay more for power, after the Newman Government announced today it is scrapping the electricity rebate promised in the state budget.

The planned rebate, $120 a year for up to three years, is one of several broken election promises described as ‘budget measures’ in an announcement from Treasurer Tim Nicholls today.

The Government will also increase insurance tax, to help fund the National Disability Insurance Scheme, and defer the increased tax-free threshold for payroll tax, which will save $235 million. Offsetting the bad news slightly, Mr. Nicholls rejected a new flood levy.

With the State Budget set to be handed down next week, Shadow Treasurer Curtis Pitt said the axed rebate “…means electricity bills for the average household would’ve risen by between $300 and $400 in the 14 months the LNP has been in power.”

In a statement, Mr. Nicholls said the measures are an attempt to counter the effects of falling government revenue, to ensure it has the funds to rebuild after the January 2013 natural disasters and to fund core services.

“In that climate, if we’re going to maintain the key government services that Queenslanders want, we have to take measures to stem the loss of government income,” Mr Nicholls said.