Key Takeaways
- The cost of medicines under the Pharmaceutical Benefits Scheme (PBS) will be reduced to a maximum of $25 from January 1, 2026
- A new Medicare phone service and online mental health check-in service will be launched in early January
- Social security payments will see a slight increase due to regular indexation changes
- New laws will require businesses to accept cash payments for transactions of $500 or less
- Changes to childcare settings will provide families with access to three days of government-subsidised childcare each week
Introduction to Upcoming Changes
The first week of 2026 will bring about several major changes in Australia, affecting various aspects of life, including healthcare, social security, and business operations. Some of the key changes include the reduction of the cost of medicines under the Pharmaceutical Benefits Scheme (PBS), the launch of a new Medicare phone service and online mental health check-in service, and the introduction of new laws requiring businesses to accept cash payments.
National Changes and Healthcare Reforms
The next phase of the Labor government’s "cheaper medicines" program will see a reduction in the cost of prescription medicines under the PBS to a maximum of $25 from January 1, 2026. This reduction is expected to save Australians more than $200m each year. Additionally, a nurse-staffed 1800 MEDICARE phone line will replace the current Healthdirect service, providing patients with 24/7 access to medical assistance. A Medicare mental health check-in service will also be launched in early January, offering early support for people experiencing mild mental health issues.
Social Security Indexation and Changes
Social security payments will see a slight increase due to regular indexation changes. The single rate of youth allowance will increase by $17.60 per fortnight, while Austudy will increase by $13.90 per fortnight. The carer allowance will also see an increase of $3.30 per fortnight. Income thresholds for student payments will be raised, and the parental income test threshold for Youth Allowance and Abstudy will also be increased. These changes aim to provide additional support to individuals and families relying on social security payments.
Mandating Cash Payments and Childcare Changes
New laws will require grocery stores and petrol stations to accept cash payments for transactions of $500 or less. This change aims to ensure that individuals have access to essential services and goods, regardless of their ability to use digital payment methods. Changes to childcare settings will provide families with access to three days of government-subsidised childcare each week, replacing the previous activity test. This change is expected to benefit 100,000 more families and is a step towards the government’s goal of universal childcare.
State-Specific Changes and Developments
In New South Wales, road toll users will face quarterly rises, but a weekly toll cap of $60 will be permanently extended. Property developers will be eligible for a tax cut, allowing them to claim a 50% reduction in land value for eligible build-to-rent properties. In Victoria, public transport will be free for everyone under 18, and changes to the congestion levy and vacant residential land tax will come into effect. Queensland will introduce a child sex offender register, named Daniel’s Law, and has rolled back rules against double jeopardy, allowing individuals to be retried for serious offences in certain circumstances.
Conclusion and Final Thoughts
The upcoming changes in Australia are expected to have a significant impact on various aspects of life, from healthcare and social security to business operations and childcare. While some changes, such as the reduction in the cost of medicines and the introduction of new mental health services, are likely to be beneficial, others, such as the increases in road tolls and changes to tax laws, may have a more complex impact. As the new year begins, it is essential to stay informed about these changes and their potential effects on individuals and communities.