As Australia welcomes the New Year 2026, a series of important changes have come into effect, aimed at saving money for citizens, improving public health, and ensuring fairer economic practices.
Welfare Payments Rise
More than a million Australians will see increases in payments from today, covering youth allowance, Austudy, ABSTUDY, youth disability pensions, and carer allowances. The exact amount depends on individual circumstances. Full details are available on the Department of Social Services website.
Cash Mandate for Businesses
From January 1, grocery and fuel retailers are required to accept cash payments for essential purchases. This new mandate primarily affects supermarkets and service stations.
Cheaper Medicines through PBS
The co-payment for medicines under the Pharmaceutical Benefits Scheme (PBS) has been reduced from $31.60 to $25 per script, fulfilling a key election promise from Prime Minister Anthony Albanese with bipartisan support.
Medicare Safety Net Increases
The Medicare safety net thresholds have risen: the original net from $576 to $594, the extended net for concession cardholders from $834 to $861, and for non-concession holders from $2,615 to $2,699. This will increase public health subsidy support.
Dental Cost Support
The Child Dental Benefits Schedule now covers $1,158 every two years for eligible families, up by $26, providing partial or full coverage for basic dental services for children under 18.
Childcare Subsidy Changes
Eligible families now receive a minimum of 72 hours of subsidized childcare per fortnight, regardless of working hours, while families working over 48 hours per week can access up to 100 hours. These changes take effect January 5, 2026.
ACCC Merger Laws Overhaul
Businesses must now notify the ACCC of mergers meeting certain criteria, including combined Australian turnover over $200 million. Approval from the ACCC is mandatory, replacing the previous voluntary system.
Energy Bill Discount Ends
The federal energy bill relief of $300 (and $150 additional subsidy) ends after December 31, 2025, as confirmed by Treasurer Jim Chalmers.
Permanent Centre for Disease Control (CDC)
Australia launches a permanent CDC to prepare for and prevent public health emergencies. Health Minister Mark Butler called it “the most important piece of public health infrastructure in generations.”
Passport Price Increase
Passport fees will rise in line with inflation, with a 10-year adult passport expected to increase from $412 to around $422.
NSW Toll Cap Made Permanent
The $60-a-week NSW toll cap will continue to help motorists, with potential changes to Sydney Harbour Bridge tolls. A demerit point reward program will also become permanent, removing one point for a full year without infringements.
Victorian Public Transport Changes
Metro fares in Victoria will increase, with the daily cap rising to $11.40 on weekdays and $8 on weekends. Youth under 18 travel free with a Myki card, and concession cardholders travel free on weekends.
These changes mark a broad effort to improve economic fairness, public health, and social support as Australians step into 2026.
