The beginning of a new year brings many changes.
New Year’s Day brings some good news: savings on childcare, lower prices on medicines, support for homeowners looking to downsize their homes, and increased welfare benefits.
Here’s what else you should know about the changes:
Centrelink payment
Many Centrelink payments, including caregivers and students, will have their payments increased from 1st January.
Payments will be indexed and up just over 6%.
This means that the youth allowance rate will increase by at least $19 in two weeks. Auustudy says he will be raised from $32.40 to $41.40 in two weeks, and in two weeks he will be paid an additional $27.40 to $40.70 if he is enrolled in a Disability Assistance Pension Under 21.
low cost PBS drug
Starting on New Year’s Day, the maximum cost of a drug under the Pharmaceutical Benefits Scheme (PBS) will drop from $42.50 to $30.
The Australian Pharmacy Guild says it’s the first time in PBS’s history that general out-of-pocket costs for medicines have decreased and not increased.
PCR testing for COVID-19 is only available at GPs
Beginning January 1, anyone wanting a free PCR test will need to get a referral from a medical practitioner, such as their GP.
Free PCR will continue to be available without referral at a limited number of state or territory operated COVID-19 testing clinics or respiratory clinics, but these clinics may be at risk for COVID-19 complications. May turn down people considered low.
High-risk groups such as the elderly, indigenous peoples, the disabled, and the immunocompromised can receive free testing through state testing sites and GP-led respiratory clinics without a GP referral.
Fee-free TAFE system introduced
Starting January 1, federal and state governments will distribute 180,000 free TAFE, vocational education and training sites. The federal government has contributed $493 million to a program funded equally by state and territory governments.
Places are held for areas of research identified as ‘national priorities’. These include:
- Nursing care (elderly care, childcare, health management, care for the disabled)
- technology and digital
- Hospitality and tourism
- construction
- Agriculture
- sovereignty
University locations with more grants
Certain people heading to college will also benefit in 2023, as the federal government contributes $485.5 million to provide 20,000 federally-supported places.
Higher education providers have been assigned places in the following areas:
- 4,036 educational institutions
- 2,600 nursing homes
- 2,275 in IT
- 2,740 people in the health professions
- 1,738 in engineering
The remaining courses are offered in other areas of skill shortage.
Places will focus on increasing participation of local and remote students, students from low socio-economic backgrounds, students with disabilities, Indigenous students, and students studying at university for the first time in their families.
make your house smaller?
New rules also apply if you sell your home after January 1st.
Australians with welfare payments who are looking to reduce their benefits may benefit from changes to the wealth and income tests that come into effect on 1 January.
Services Australia has announced that those who sell their primary residence and use the sale proceeds for a new primary home will only be required to declare the remaining income.
This applies if the funds are used to purchase, build, rebuild, repair or renovate a new primary home.
The change applies to income assistance payments, certain benefits, and low-income health care cardholders.
Childcare fees will drop in 2023
In June, free kindergartens, preparatory programs and more childcare were announced as part of Victoria’s $9 billion education reform package.
Kindergarten will be free in Victoria with new subsidies coming into force in 2023.
A $2,500 subsidy is available for children enrolled in eligible kindergarten sessions. Additionally, children participating in a funded kindergarten program in a long-term care setting are eligible for a $2,000 fee reduction.
From January 2023, many Queensland households will also pay less for kindergarten. You can check if you are eligible here.
Pre-school and post-school care vouchers will be available in New South Wales. Parents of children in elementary school must apply for a $500 voucher by the end of January to cover the cost of preschool and afterschool care. This includes children entering Kindergarten in 2023.
Federal childcare plans won’t start until July 2023. The child care subsidy rate will be increased up to 90% for eligible family members whose income is less than $530,000.
Mental health subsidies reduced from 20 to 10 sessions
Medicare-reimbursed psychology sessions will be reduced from a maximum of 20 free sessions per year to 10 sessions.
Health Minister Mark Butler announced in December that starting next year, patients would only be able to claim Medicare reimbursement if they had 10 visits to a psychologist or related mental health service.
More Mental Health Support for Small Business Owners
In October, the federal government announced $15.1 million to help small business owners access free mental health and financial counseling support.
The NewAccess Program for Small Business Owners is a free one-on-one mental health coaching program offered by Beyond Blue. The program offers small business owners up to six structured sessions via telehealth with trained mental health coaches.
The Small Business Debt Helpline provides free phone-based support to small business owners nationwide.
Both services will start on January 1st.
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