Key changes that will affect Australia from January 1, 2026

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New year always sets a new rules and price changes cycle. Here's a rundown of the key changes that Australians should anticipate for 2026.

Centrelink payments go up

There are over a million welfare recipients who will benefit from a raise in their payments that has happened through indexation.

• Youth Allowance (single, living away from home) gets increased to $677.20 per fortnight.

• Carer Allowance goes up to $162.60 per fortnight for approximately 680,000 people.

• The student income and parental income limits for Youth Allowance and ABSTUDY are also rising.

More affordable PBS medicines

From January 1, the cost limit for a PBS prescription for general patients is reduced to $25.

People holding concession cards will still only be required to pay $7.70, kept unchanged until 2030.

The switch is estimated to bring savings of more than $200 million to the Australian community every year.

Increase in Toll Prices

Tolls have been increased in several states as a result of indexation.

• NSW: The prices of major toll roads see an increment. The starting toll for the Eastern Distributor is now $10.26. A cap of $12.74 has been set for car tolls on WestConnex.

• Victoria: The car toll cap on CityLink goes up to $12.38.

• Queensland: AirportlinkM7 tolls in Brisbane go up, with the top charges now being $3.58.

Cash has to be accepted for essentials

Under a new rule, grocery and fuel retailers will have to accept cash for two hours, 7am - 9pm, in-person purchases that are under $500.

Small businesses with a turnover of less than $10m will be predominantly exempt.

Energy rebate finishes

The federal energy bill rebate of $150 comes to an end on December 31, 2025.

The rebate will not be continued into the next year.

Passport fee hike

The fee for Australian passport applications is set to rise by $10, tied to the inflation rate.

The price of a 10-year passport will be higher from January 1.

Childcare subsidy reform

The Child Care Subsidy activity test is eliminated.

From January 5, eligible families will be allowed at least 72 hours of subsidised care per fortnight.

Depending on their situation, some families will be able to get up to 100 hours.

These modifications in the budget, travel, health expenses as well as childcare will come into effect from the first day of 2026.

Stay tuned with Aus News Lanka – the leading platform for news for Australians.