As Australia rings in the new year, a host of changes will come into effect.
The changes aim to save Australians money, prevent price increases and improve public health responses.
From a new cash mandate to cheaper medicines and welfare payment rises, here are the main changes coming into effect in 2026.
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Welfare payments rise
More than a million Australians are set to receive an increase to their payments from January 1, 2026.
The changes will apply to those receiving youth allowance, Austudy, ABSTUDY, youth disability pension and carer allowance payments.
The amount will differ depending on your circumstances.
A full list of the changes is available on the Department of Social Services website.
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.
The mandate will mostly apply to retailers such as supermarkets and service stations.
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Cheaper medicines through the PBS
Australians can expect their medicine bills to be slashed in the new year.
The general patient co-payment for medicines on the Pharmaceutical Benefits Scheme (PBS) will be capped at $25 per script from January 1, a decrease from $31.60.
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.
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Dental costs
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.
The government program was set up to cover part or all of the cost of basic dental services for eligible children aged 17 or under.
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.
ACCC merger laws
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.
The much-needed $300 power bill relief was offered to households during the 2024/25 financial year, aimed at curbing cost of living pain for Australian families.
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 opening comes almost 40 years after the first calls for the country to establish the service.
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".
Passport price change
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.
NSW Premier Chris Minns confirmed in November the state's $60-a-week toll cap would continue beyond January 1, 2026 to help motorists with the cost-of-living.
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.
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