Name: The new subsidies keeping more cash in your wallet in 2026
Uploaded: 2025-12-31T06:44:20.085Z
Duration: 1 min 49 s
Description: Several new cost-of-living policies will come into effect on January 1, including all PBS medication being capped at $25 per script, and a three-day child care subsidy for elligible families.

Several new cost-of-living policies will come into effect on January 1, including all PBS medication being capped at $25 per script, and a three-day child care subsidy for elligible families.

Canberra

The Australian Federal Government is implementing a series of cost of living measures beginning January 1, including capping Pharmaceutical Benefits Scheme medications at $25 per script and increasing social security payments through indexation. Pensioners and concession card holders will pay $7.70 per script until 2030, and more than 1.5 million Australians are expected to benefit from these changes.

Additional policies include the introduction of a three-day child care subsidy for eligible families, the launch of a 24-7 Medicare advice line, and new requirements for businesses to accept cash for certain transactions. However, the quarterly energy bill rebate is ending, passport fees are rising, and road tolls in several states will increase.

The new subsidies keeping more cash in your wallet in 2026

From January 1, a number of the Federal Government's election promises kick in. Medications on the Pharmaceutical Benefits Scheme will be capped at $25 per script. That's expected to save Australians more than $200 million, bringing prices down to 2004 levels. Pensioners and concession card holders will only have to pay $7.70 per script, and that remains locked in until 2030. Social Security payments will also increase as a result of indexation, including those on youth or carer allowances. More than 1.5 million Australians are expected to benefit. For Australians with young families, there's some relief on the way for child care. The Federal Government's three-day child care subsidy kicks in on January 5. That means a couple who earns less than $530,000 a year will be eligible for 72 hours of subsidised child care per fortnight. For about 100,000 families, that will increase to 100 hours. We'll also have 1-800-Medicare, which is that 24-7 service where if you're worried about your health, you'll be able to ring that number 24-7 and get some guidance, some advice and referral on to another service if you need. But some things are going up. The Federal Government's energy bill rebate, which slashed $75 off household bills every quarter, ends at midnight tonight and is not being extended. A new passport will also cost you more. Currently, a 10-year passport is $412. That will increase by $10 in the new year. Tolls on NSW, Victorian and Queensland roads will also rise. But if you're looking to fill up, cash remains king. From tomorrow, businesses that sell fuel and groceries must accept cash for transactions of up to $500 between the hours of 7am and 9pm.

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