Overview: What happens on 1 January 2026 in Australia
As the new year arrives, Australia rolls out a suite of policy shifts that affect everyday life. From affordable medicines to updated cash-handling rules and new government services, these changes could touch most households. Below is a clear guide to what is changing, why it matters, and how to prepare.
Cheaper medicines: PBS indexation and broader access
One of the headline changes is a new round of price support for prescription medicines through the Pharmaceutical Benefits Scheme (PBS). The government has announced indexation adjustments that aim to keep medicines more affordable for patients who rely on regular prescriptions. In practical terms, this means some medicines may carry lower out-of-pocket costs or more stable pricing, reducing the financial burden for seniors, families with chronic conditions, and others who frequently use PBS-listed drugs.
How it works: PBS indexation adjusts the capped price of medicines in line with inflation and other economic indicators. For patients, the impact is meant to be felt at the pharmacy counter, where cheaper, consistently affordable options could be available for common conditions. For healthcare professionals, this shift supports better adherence to treatment plans when cost is less of a barrier.
Note that the changes depend on listing status and individual drug approvals. Speak with your pharmacist or GP if you have questions about which medicines are affected and how to access any new pricing arrangements. Consumers should also monitor PBS updates, as not all medicines will be uniformly cheaper—some price protections are drug-specific and subject to ongoing policy reviews.
Medicare phone service: easier access to information and support
Another key change is the introduction of a dedicated Medicare phone service. This helpline is designed to improve accessibility, helping Australians understand entitlements, verify coverage, and navigate claim processes. The service is especially valuable for people who find online portals confusing or who prefer direct assistance when managing healthcare-related benefits.
Customers can expect trained operators who can answer questions about Medicare cards, medication subsidies, and general eligibility for government health programs. While some tasks may still require online forms or in-person visits, the phone service offers a reliable alternative for urgent inquiries or for those without easy internet access.
As with all government services, wait times can vary, and having essential information on hand—personal details, Medicare numbers, and a brief description of the issue—will help speed up the call. The rollout may occur in stages, so it is wise to check the official Medicare website for service hours and contact numbers specific to your state.
Cash payments: new laws require acceptance by businesses
A notable policy reform concerns how businesses handle physical cash. New state laws mandate that a broad range of businesses must accept cash payments, reinforcing consumer choice and reducing barriers for those who rely on cash transactions. This change echoes responses seen in several other countries, with the intention of promoting financial inclusion and ensuring that cash remains a viable option for everyday purchases.
Businesses subject to the new rules will need to train staff, adjust point-of-sale systems, and publicly display cash acceptance policies. For consumers, this can mean easier access to services such as groceries, transport, and healthcare-related purchases, even when digital payment methods are temporarily unavailable. As the policy is implemented across states, there may be exemptions for certain small businesses or sectors with specific security or logistical considerations.
Indexation of social security payments: more support for living costs
Alongside the household-focused changes, social security payments will see indexation adjustments. These updates aim to keep welfare and pension payments aligned with living costs, addressing inflation and rising expenses for retirees, job seekers, and other eligible groups. Recipients can expect changes to cap levels, base rates, or supplementary payments, depending on the program and eligibility criteria.
Anyone receiving social security should review their entitlements shortly after the new year begins. Officials typically publish updated payment rates and eligibility guidance ahead of implementation, along with information about how to request assistance if the adjustments affect a recipient’s budget.
What this means for households and small businesses
For households, the collection of cheaper medicines, improved access to Medicare support, and cash-based flexibility can lower regular expenses and provide more predictable budgeting. For small businesses, the cash-acceptance rules will require compliance planning, staff training, and possible system updates, but they also create a fairer marketplace where customers have more payment options.
As with any policy rollout, there will be questions about timing, transitional arrangements, and state-specific variations. Local councils and state health departments are likely to publish detailed guidance, so checking official portals regularly can help you stay ahead of any changes that affect your bills, your healthcare, or your day-to-day purchases.
Next steps
– Check your PBS listings and talk to your pharmacist about price changes.
– Contact Medicare to learn about the new phone service and how to access benefits.
– Prepare for cash-acceptance requirements by reviewing your business or consumer options.
– Monitor social security payment rates and ensure your details are up to date.
