Sydney Australia
Over one million Australians receiving welfare payments will see a 3.8% increase. PIxabay

Millions of Australians will see a range of changes affecting their finances and daily lives, starting Jan. 1, impacting workers, businesses, and consumers across the country.

The range of changes include welfare payment increases, rising passport fees, and new workplace laws. While some costs, like medicine prices, will remain frozen, others, such as aged care worker wages and alcohol taxes, will rise. Additionally, significant changes are in store for foreign property sellers, student visa applications, and climate-related disclosures for large companies.

Welfare payments increase

Over one million Australians receiving welfare payments will see a 3.8% increase, in line with inflation, including youth allowance, Abstudy, and Austudy. Youth allowance payments will rise between AU$17.30 and AU$24.30 every two weeks, with single students seeing increases between AU$24.30 and AU$30.60, 9News reported.

Carers will receive an extra AU$5.80 per fortnight. Income tests will also be adjusted, allowing people to earn slightly more while still qualifying for the maximum payment. Note that not all welfare payments are increasing, as some, like rent assistance, are adjusted every March and September.

Passport prices go up

Australia's passport fees, already among the highest in the world, will rise again starting Jan.1. While the government hasn't officially announced the new rates, inflation adjustments mean the cost of a 10-year passport will go over AU$400.

Medicare safety net increase

As Medicare safety net increases, the original safety net will rise from AU$560 to AU$576, while the extended safety net increases to AU$834 for concession card holders and to AU$2615 for those without concession cards.

Employers face fines for underpaying staff

Employers who intentionally underpay employees will face significant penalties. Under new federal laws, wage theft will be criminalized, with fines up to AU$8.25 million, or three times the amount of stolen wages. Individuals involved in wage theft could face up to 10 years in prison and fines of up to AU$1.65 million or triple the stolen amount.

Aged care workers get pay rise

Aged care workers will receive a pay increase, ranging from 2.3% to 13.5%, as approved by the Fair Work Commission. Some workers will receive the increase in two stages, with the second part expected to be received in October.

Medicine prices frozen

Normally, the cost of medicines on the Pharmaceutical Benefits Scheme increases with inflation every January, but for 2025, the prices will be frozen. This freeze will last for four years for concession card holders.

Here are some other changes expected in 2025:

  • Reserve Bank changes: New laws create a dual-board structure, adding more voices to interest rate decisions.
  • Student visa changes: New rules for student visa applications.
  • Capital Gains tax: Foreign property sellers will face a 15% tax on sales, up from 12.5%, and sales under AU$750,000 will no longer be exempt.
  • Engineered stone ban: Importing engineered stone will become illegal after a ban on its use in June.
  • Climate risk disclosure: Large companies must disclose climate change-related risks and opportunities.
  • Alcohol price rise: The alcohol excise will increase on Feb. 3, raising the price of drinks.
  • Superannuation increase: Starting July 1, the superannuation guarantee will rise from 11.5% to 12%.