2026 Federal Budget - Cost of Living Measures

Energy bill relief

Good news for households and small businesses – the government is extending energy bill rebates for another six months until 31 December 2025.

The changes include:

» Eligible households will receive $150 in total ($75 per quarter) from 1 July 2025.

» Small businesses that meet their state’s definition of a “small electricity customer” will also receive $150 in total.

» The discount will be automatically applied to your electricity bill by your energy provider.

Expanding bulk billing incentives

From 1 November 2025, bulk billing incentives will be expanded to all Medicare-eligible Australians – not just children under 16 and concession card holders.

A new Bulk Billing Practice Incentive Program will also reward general practitioners (GP) who bulk bill all Medicare consultations, making it easier to find doctors who bulk bill. The goal? Nine out of ten GP visits bulk billed by 2030.

Cheaper medicines

The Government is lowering the maximum cost of medicines on the Pharmaceutical Benefits Scheme (PBS) for everyone with a Medicare card and no concession card.

From 1 January 2026, the maximum co payment will be lowered from:

» $31.60 to $25.00 per script for general Medicare cardholders.

» For concession card holders, the co-payment will stay frozen at $7.70.

These measures aim to ease financial pressure and improve access to essential services for Australians.