The new year has arrived and, thanks to a raft of changes that take effect from January 1, households will enjoy some cost of living relief in early 2023.
Medicines will become cheaper and aged care home packages will have their management fees capped thanks to federal government changes designed to relieve cost pressures facing families.
Other changes will bring big changes to the way COVID tests are conducted across Australia.
And, of course, there’s the usual inflation indexation for a host of government support schemes.
Cheaper medicines
From January 1, the maximum Pharmaceutical Benefits Scheme co-payment for an estimated 19 million Australians will reduce from $42.50 to $30, making medicines cheaper.
Non-concessional payments will save $12.50 on PBS medicines prices at or above the current general co-payment.
A more generous discounting regime will also come into effect, allowing medicines with a dispensed price between $30 and $45.60 to be discounted at any price, at the discretion of pharmacies.
The changes will cost the federal budget $787 million over the next four years.
For a list of all medicines on the PBS, check this link.
Aged care home package reforms
The government has moved to cap a range of home care package fees that providers are able to charge older Australians.
From January 1, providers can no longer charge more than 20 per cent of their total package costs for care management, and no more than 15 per cent for package management.
These changes also stop providers from charging exit fees and for package management in a month where recipients receive no services other than care management.
Aged care providers are also now banned from charging brokerage or subcontracting fees to clients, meaning the prices that providers charge must be quoted on an “all inclusive” basis.
More information about the changes is available through the health department at this link.
COVID test changes
From January 1, the way Australians get tested from COVID changes drastically.
PCR tests are no longer be freely available and are instead only accessible with a Medicare referral from a doctor or nurse. This change applies to federal-operated PCR clinics – many state and territory-run clinics will still offer PCR tests without referrals.
Vulnerable Australians and Indigenous people will be prioritised for PCR testing.
Income support indexation
A range of federal government income support programs are indexed to inflation on January 1, increasing the dollar amount paid out so that recipients don’t fall behind fast rising prices.
Youth allowance, Austudy, Abstudy, disability support pensions and carer payments will all rise.
The increases range from $20 to more than $90 per fortnight, varying by eligibility and individual income statuses.
The income thresholds and tests for these programs have also been adjusted with inflation for the new year.
A full list of the income support changes, including dollar increases, is available at this link.
