Nearly 500,000 Australians will be eligible for a rebate worth hundreds of dollars in a bid to offset a major price hike expected on July 1.

All Commonwealth Seniors Health Card holders, nearly 500,000, will receive up to $500 per household in energy bill relief from the federal government on 1 July.

The rebate is to try to offset a major price rise in electricity.

From 1 July, electricity prices will increase between 20% and 25% for those in NSW, southeast Queensland and South Australia.

Clare Savage, chair of the Australian Energy Regulator, which increased the price of electricity, urged people to “shop around”.

“No one wants to see rising prices, and we recognise this is a difficult time, that’s why it’s important for consumers to shop around for a better deal,” she said.

Income limits for the Commonwealth Seniors Health Card were increased to $90,000 for singles and $144,000 for couples on November 4, 2022 – the biggest increase in more than 20 years.

Since November an additional 16,230 Australians who were not previously eligible have been granted access to the Commonwealth Seniors Health Card.