- Some government support payments will rise from 1 January
- The Medicare safety net threshold will increase while the price of medicines will go down
- It will cost more to get a passport
- New laws making it mandatory for some major businesses to accept cash will take effect
As well as heralding the start of 2026, 1 January will also see a raft of changes to payments, taxes, and laws.
Here's a rundown on what could affect your finances over the coming year.
Centrelink payments to rise
Some government support payments will increase in line with indexation, including:
Youth Allowance/Austudy
The maximum basic rates of Youth Allowance and Austudy for singles over 18 who live away from home will increase by $13.90 per fortnight to $677.20.
Singles with children will see a $17.60 rise per fortnight, taking their payments to $854.20.
ABSTUDY
ABSTUDY payments will see a maximum increase of $30.80 per fortnight for Masters and Doctorate students, taking their payment to $1,316.20.
The payment for singles under 21 living away from home with no dependents will increase in line with relevant Austudy payments.
Youth Disability Support
The Youth Disability Support Pension for under 21s will increase by up to $17.20 a fortnight to $839.80 for those living independently or as part of a couple.
Carer Allowance
Carers will receive an extra $3.30 per fortnight, taking their payment to $162.60.
The Department of Social Services provides a full list of the changes as well as new income test limits that come into effect on 1 January.
Not all welfare payments will rise
It's worth noting not all government payments are increasing.
Many, including the age pension, are automatically increased on 20 March and 20 September each year in line with CPI indexing.
More than a million Australians in line to receive the 1 January increases will see them automatically applied.
Medicare Safety Net changes
The Medicare Safety Net thresholds increase from 1 January 2026.
The Original Medicare Safety Net threshold will rise to $594.40, up from $576.
This is the amount Medicare card holders are required to spend on out-of-hospital medical costs to be eligible for a 100% rebate for the remainder of the calendar year.
The Extended Medicare Safety Net will also increase to $861.20, up from $834.50 for concessional card holders.
For those without concession cards, it jumps to $2699.10, up from $2,615.50.
The extended safety net applies to out-of-pocket expenses for out-of-hospital services before the government covers 80% of all further out-of-pocket expenses for the remainder of the year.
All conditions are outlined in the Medicare Benefits Schedule.
PBS medicine co-payment decreases
Australians will pay less for medicines under the Pharmaceutical Benefits Scheme with the general patient co-payment being cut to $25, down from $31.60, from 1 January.
Childcare subsidy changes
Eligible families will get at least 72 hours of subsidised childcare per fortnight, equivalent to three days a week, from 5 January.
This will apply regardless of how much they work.
Some families will be eligible for 100 hours a fortnight of subsidised childcare for each child if they meet certain criteria, including working 48 hours a fortnight or more.
Eligibility and conditions are outlined by the Department of Education.
Passport costs rise
The cost of getting an Australian passport will rise from 1 January in line with indexation.
The fee for a new 10-year adult passport - currently $412 - will increase by around $5-10.
The new fee schedule is due to be published on the Australian Passport Office website on 1 January.
New cash rules kick in
Major grocery stores and petrol stations will be required to accept cash payments for in-person purchases up to $500 between 7am and 9pm.
Small businesses (turnover under $10 million) are exempt.
Apprenticeship incentive changes
Current apprenticeship incentive payments will apply only for those in Key Apprenticeship Program areas - clean energy and housing - from 1 January.
These trades will continue to receive payments of $5,000 for employers (paid in the first year) and $10,000 for apprentices (paid throughout training).
Other trades on the government's general Priority List will see incentive payments halved to $2,500 for employers and reduced to $2,500 for apprentices.
Those outside the Priority List will not receive government support.
Apprenticeships that began before 1 January will continue to receive the old payment rates.
Full details are available via the government website.
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