Australians will see a range of changes take effect in the new year, impacting healthcare, social security, childcare, and even how businesses handle cash payments. New legislation and previously announced programs will begin rolling out across the country starting January 1st, 2026, with varying impacts state by state.
National Changes
Healthcare Access and Affordability
A key change will be the reduction in the maximum cost of prescriptions under the Pharmaceutical Benefits Scheme (PBS) to $25, down from the current $31.60. Prime Minister Anthony Albanese stated this change is expected to save Australians over $200 million annually, aiming to alleviate financial burdens related to essential medications. The cost for pensioners and concession card holders will remain at $7.70 until 2030.
Expanded Medicare Services
Access to medical assistance is also set to improve with the launch of a 24/7, nurse-staffed 1800 MEDICARE phone line, replacing the existing Healthdirect service. Additionally, a Medicare mental health check-in service, operated by St Vincent’s Health, will become available in early January, offering initial support for those experiencing mild mental health concerns and expanding in late March to include cognitive behavioural therapy via phone or video.
Social Security and Childcare Adjustments
Recipients of social security payments will see modest increases beginning January 1st, with the single rate of youth allowance rising by $17.60 per fortnight and Austudy increasing by $13.90. The carer allowance will increase by $3.30 per fortnight. Income thresholds for student payments and Youth Allowance will also be adjusted. Families will gain access to three days of government-subsidised childcare per week, replacing the previous activity test requirements, with the government anticipating this will benefit an additional 100,000 families.
Cash Payments Mandated
Businesses, with the exception of those with a turnover of less than $10 million, will be required to accept cash payments for transactions of $500 or less, starting January 1st. This change aims to ensure accessibility for those who rely on cash for purchases.
State-Specific Changes
New South Wales
NSW road toll users will face increased quarterly fees, though a weekly toll cap of $60 will be permanently extended. Property developers may be eligible for a tax cut, claiming a 50% reduction in land value for eligible build-to-rent properties. However, new developments in the City of Sydney will be required to install electric cooking and heating appliances. Recent legislation passed after the Bondi attack, including changes to gun control, protest laws, and hate speech regulations, will also be implemented, with some provisions already in effect.
Victoria
Victoria will make public transport free for all individuals under 18, and for over 650,000 seniors and nearly 300,000 carers and disability support pensioners on weekends. Changes to the congestion levy and vacant residential land tax will also take effect, with the congestion levy increasing by over 70% and applying to more areas of Melbourne.
Queensland
Queensland will launch a public child sex offender register, named Daniel’s Law, modeled after a similar register in Western Australia. The register will have three tiers, allowing for the public release of information on offenders who breach reporting requirements and enabling residents to access information about offenders in their local area. Additionally, Queensland has rolled back rules against double jeopardy in specific cases related to errors stemming from the state’s DNA lab scandal, and amended defamation laws to protect publishers from liability for comments on their social media pages.
Frequently Asked Questions
What is the new maximum cost for PBS prescriptions?
The new maximum cost for any prescription under the Pharmaceutical Benefits Scheme (PBS) will be $25, starting January 1st, 2026.
Will all families be eligible for childcare subsidies?
Yes, all families will be eligible for three days of government-subsidised childcare each week, regardless of income or work habits, as part of the new “three-day guarantee.”
What is Daniel’s Law in Queensland?
Daniel’s Law is Queensland’s new child sex offender register, modeled after a similar register in Western Australia, which will operate with three tiers of information disclosure.
How will these changes impact your household and community in the coming year?
