As the calendar flips to a new year in Australia, several significant updates are set to take place.

These initiatives are designed to help Australians cut costs, curb potential price hikes, and enhance public health measures.

Among these changes for 2026 are a new cash policy, more affordable medications, and increases in welfare benefits.

The adjustments will impact individuals receiving youth allowance, Austudy, ABSTUDY, youth disability pension, and carer allowance.

The specific increase will vary based on individual circumstances.

Businesses must take cash

This year Treasurer Jim Chalmers announced that Australia would introduce a cash mandate for grocery and fuel retailers from January 1.

Under the new rules, businesses that sell fuel and groceries must accept cash payments for these essential purchases.

Cheaper medicines through the PBS

Australians can expect their medicine bills to be slashed in the new year.

The change is a key election promise from Prime Minister Anthony Albanese and is coming through with bipartisan support from the Coalition.

Medicare safety net increases

The Medicare safety net will rise on January 1, pushing up the amount Australians and their families will need to pay before they are provided with increased public health subsidies.

The original safety net is increasing from $576 to $594, while the extended safety net has gone from $834 to $861 for concession card holders and from $2615 to $2699 for those without concession cards.

A trip to the dentist can be costly but there will be some additional support for some Australians. 

The child dental benefits schedule will cover $1158 every two years for eligible families from January 1, an increase of $26.

Childcare subsidy change

Families who are eligible for the childcare subsidy will get at least 72 hours of subsidised childcare per fortnight regardless of how much they work.

Meanwhile families can get 100 hours if they work more than 48 hours a week.

The changes will come into effect on January 5, 2026.

Australia’s merger laws will undergo a significant overhaul on January 1 aimed at preventing anti-competitive price rises for consumers and industry concentration.

The Australian Competition and Consumer Commission (ACCC) and the federal government will make it mandatory for businesses to notify the ACCC about certain acquisitions and receive subsequent approval from the regulator.

A merger deal between businesses must be reported to the ACCC if it meets certain requirements, including where the companies involved have a combined Australian turnover of $200 million or more.

The previous system was voluntary and informal.

Energy bill discount ends

Treasurer Jim Chalmers has confirmed the federal government’s energy bill discount will end in the new year.

An extra $150 subsidy was then offered to Australians from July, however Chalmers revealed it would not be extended beyond December 31, 2025.

Centre for Disease Control launch

Australia will establish a permanent Centre for Disease Control (CDC) from January 1 to help the nation prepare for and prevent public health emergencies.

The Public Health Association of Australia (PHAA) called it the “most important piece of public health infrastructure in generations”, and Health Minister Mark Butler said the CDC would “help protect Australia from diseases and public health threats”.

If you need to renew your passport, you will be paying more in the new year.

Passport prices are set to increase increase in line with inflation.

The cost of a 10-year adult passport is currently $412, which means the price could rise to $422 in 2026.

NSW toll cap to be made permanent

If you live in NSW and regularly drive on toll roads, you could save some money on your commute in the new year.

The rebate allows motorists to claim up to $340 back a week after spending $60 per vehicle.

However he warned there could be a major change to how the Sydney Harbour Bridge is tolled to pay for the relief.

Minns also announced the trial demerit point reward program would be made permanent in the new year.

This means unrestricted licence holders who incur no traffic infringements for a full calendar year will have one demerit point removed from their licence.

Victorian public transport changes

From January 1, metro public transport fares in Victoria will rise.

This includes the daily fare cap which will increase from $11 to $11.40 on weekdays and from $7.60 to $8 on weekends.

People under 18 with a youth Myki card can travel free of charge in the new year, while concession card holders can travel for free on weekends.