What’s changing on 1 January 2026?
Australia is set to implement a slate of reforms in the first week of 2026 that could affect how much households pay for medicines, how they access Medicare support, and how businesses handle cash payments. While details vary by policy, the overarching aim is to improve affordability, streamline government services, and strengthen consumer protections. Here’s a clear look at the major changes you should know about as the new year starts.
Cheaper medicines on the Pharmaceutical Benefits Scheme (PBS)
One of the headline changes centers on the PBS, where medicines become more affordable for many Australians. The indexation mechanism—how PBS co-payments rise with inflation—will be adjusted to deliver lower out-of-pocket costs for consumers. In practical terms, eligible patients may notice smaller co-payments for commonly used prescription drugs, particularly for chronic conditions like hypertension, asthma, and diabetes where ongoing medication is common. Pharmacists and healthcare providers say the reform could ease financial strain for families, seniors, and low-income earners who rely on subsidised medicines.
The policy is designed to maintain access while controlling budgetary pressure on the PBS. It’s still important for patients to check with their pharmacist or GP about the exact cost for their medicines, as rebates and co-pays can vary depending on the item and patient concession status. If you have recently started a new medication, there may be a temporary fluctuation in price as the new subsidy schedule takes effect.
Medicare: new phone service to improve access
Another significant change is the launch of a Medicare phone service intended to boost accessibility and reduce waiting times for information and basic services. The service is expected to help people navigate common inquiries—ranging from eligibility questions to prescription-related concerns—without needing an in-person visit. For seniors, carers, and people in regional areas where access to clinics can be limited, the phone service could offer a convenient alternative to long trips. Expect improved call routing and clearer guidance on how to obtain test results, referrals, or booking reminders.
New laws mandating cash payments be accepted
A notable regulatory shift requires businesses to accept cash payments for goods and services. The policy aims to protect consumer choice and ensure that those who prefer or rely on cash can complete transactions with confidence. Businesses should prepare for updated cash-handling guidelines, staff training on cash transactions, and possible compliance checks. In practice, this means customers will have the option to pay in cash in more places, provided the transaction falls within standard legal limits and business policies. If you run a small business, review your point-of-sale systems and cash-handling processes to ensure smooth continuity of service and to avoid inadvertent non-compliance.
Other changes to expect in the first week of 2026
Alongside health and payment reforms, indexation increases to social security payments are slated to roll out. This change affects welfare recipients, pensioners, and eligible families, potentially adjusting weekly payments to reflect cost-of-living shifts. Government agencies will publish exact figures and timelines, so recipients should monitor official notices for updated payment amounts and processing dates.
How these changes may affect households
For households, the combined effect of cheaper medicines, improved Medicare access, and broader cash acceptance could ease everyday expenses and reduce the administrative burden of healthcare. However, the reforms require attention to detail. Patients should verify the latest PBS co-payments for their medications, carriers should ensure compliance with cash payment laws, and individuals receiving social security should review their payment schedules to understand any increases. If you’re unsure how these changes apply to you, consult your GP, pharmacist, or the nearest Medicare office, and review official government guidance.
Practical steps to prepare
- Check PBS co-payments for any medicines you or family members use regularly and discuss alternatives with your pharmacist if needed.
- Familiarise yourself with the new Medicare phone service by noting the dedicated helpline and the typical wait times.
- Audit your business’s payment methods to ensure cash acceptance is compliant and that staff are trained in handling cash responsibly.
- Keep an eye on your social security statements for any adjustments in payments due to indexation changes.
As 2026 begins, these reforms reflect a broader push to balance affordability, accessibility, and consumer protections in Australia. While the changes may require some adjustment, they are designed to simplify daily life for many Australians—from saving on medicines to making government services easier to access and ensuring cash remains a viable payment option in the market.
