As the calendar flips to a new year, Australians are greeted not only with resolutions and celebrations, but also with a raft of changes that will impact everyday life. From adjustments to welfare payments and workplace laws to updates in healthcare and travel costs, these reforms signal significant shifts in policies that aim to address inflation, improve worker protections, and enhance economic transparency.
Key Changes to Welfare Payments
From today, over one million Australians will see an increase in payments such as Youth Allowance, Abstudy, and Austudy, adjusted for inflation. These increments range between $17.30 and $30.60 per fortnight for singles, with similar increases for other categories. Income tests have also been raised, enabling recipients to earn more while remaining eligible.
Increased Passport Fees
Australia, already home to some of the most expensive passports globally, has increased fees further. A 10-year adult passport now costs $412 (up from $398), while a 5-year children’s passport is $208.
Medicare Safety Net and Healthcare Changes
Thresholds for the Medicare safety net have risen, requiring individuals and families to spend more before qualifying for increased subsidies. The new limits range from $576 for the original safety net to $2615 for those without concessions.
Criminal Penalties for Wage Theft
Under new laws, employers deliberately underpaying staff face hefty fines—up to $8.25 million or triple the stolen wages—and individuals risk up to 10 years in prison with fines up to $1.65 million.
Pay Rises for Aged Care Workers
The Fair Work Commission has approved a pay increase for aged care workers, with raises of up to 13.5%. Implementation will occur in two stages, with the next phase beginning in October.
Additional Changes
- Medicine prices under the Pharmaceutical Benefits Scheme remain frozen for 2025, offering cost relief to Australians.
- Foreign capital gains withholding has risen from 12.5% to 15% for property sales exceeding $750,000.
- Importation of engineered stone is now banned, following prior restrictions on its use.
- Large corporations must disclose their climate-related risks and opportunities.
What’s Next?
Further adjustments are expected later in the year, including re-indexing alcohol excise duties in February and implementing changes to the Reserve Bank’s governance structure in March. A rise in the superannuation guarantee to 12% will take effect on July 1.
