Major updates to Centrelink payments, Medicare thresholds, superannuation contributions, and other key financial areas are coming in 2025. These changes will impact pensioners, job seekers, students, carers, and workers across Australia.
Whether you receive Centrelink benefits, use Medicare services, or contribute to superannuation, staying informed will help you make the most of these updates.
Let’s break down the biggest changes, their implications, and how you can prepare.
Centrelink and Medicare Updates
| Change Area | Key Updates | Additional Resources |
|---|---|---|
| Centrelink Payments | Youth Allowance increases to $670.30 (away from home), Carer Allowance rises to $159.30. | Centrelink Official Site |
| Medical Exemptions | Extended to 24 months for certain job-seeking payments. | Learn More |
| Medicare Safety Net | Thresholds increase across categories, requiring higher out-of-pocket expenses before rebates apply. | Medicare Info |
| PBS Co-Payment | Frozen for 2025 to keep essential medications affordable. | PBS Overview |
| Travel and Passport Costs | UK travel requires an ETA; passport prices expected to rise. | UK ETA Details |
| Superannuation Contribution | Rate rises from 11.5% to 12% on July 1, 2025. | Superannuation Updates |
| Support for Job Seekers | New training programs and resources for long-term unemployed individuals. | Job Seeker Programs |
Changes to Centrelink Payments
Centrelink payments provide financial assistance to millions of Australians, including students, carers, and job seekers.
Starting January 1, 2025, several payments will increase due to annual indexation.
Increased Payment Rates
- Youth Allowance & Austudy:
- Living away from home: $670.30 per fortnight (+$24.30).
- Living at home: $477.10 per fortnight (+$17.30).
- Carer Allowance:
- New rate: $159.30 per fortnight (+$5.80).
- Youth Disability Support Pension:
- Payment increases vary based on individual circumstances.
Extended Medical Exemptions
Australians on JobSeeker or Youth Allowance for job seekers can now apply for medical exemptions lasting up to 24 months (previously limited to 13 weeks).
This change supports those with chronic health conditions or ongoing treatments.
Additional Support for Job Seekers
New programs launching in 2025 aim to help long-term unemployed individuals find work through:
- Upskilling Programs – Free/subsidized training in high-demand industries.
- Personalized Coaching – One-on-one support for resumes, job applications, and interviews.
- Employer Incentives – Subsidies for businesses hiring long-term unemployed workers.
Practical Advice
✔ Check your eligibility: Review Centrelink’s website to see if you qualify for increased payments.
✔ Plan your budget: Use the extra funds wisely to cover rent, groceries, and education costs.
✔ Update your details: Ensure your contact and banking info are correct to avoid payment delays.
✔ Explore new programs: Take advantage of training and employment support.
Medicare Changes in 2025
Medicare is adjusting safety net thresholds and expanding access to telehealth services in 2025. While these updates aim to improve healthcare access, they may also increase out-of-pocket costs for some individuals.
Updated Safety Net Thresholds
The Medicare Safety Net provides higher rebates after you reach a spending limit on out-of-pocket medical expenses. In 2025, thresholds will increase:
- Original Medicare Safety Net: $576 (previously $560.40).
- Extended Medicare Safety Net: $2,615.50 (previously $2,544.30).
- Concession Card Holders & Families: $834.50 (previously $811.80).
PBS Co-Payment Freeze
Good news for medication costs: the Pharmaceutical Benefits Scheme (PBS) co-payment will remain frozen at $31.60 for general patients. This keeps essential medicines affordable despite inflation.
Expanded Telehealth Services
Medicare will increase funding for telehealth consultations, making it easier for patients to receive care remotely. This is especially helpful for:
- People in rural and remote areas.
- Patients with mobility challenges.
- Specialist consultations without long travel times.
Practical Advice
✔ Track medical expenses: Keep receipts to monitor out-of-pocket spending.
✔ Use bulk billing: Look for doctors who offer bulk billing to reduce costs.
✔ Check your entitlements: Use the Medicare Benefits Schedule to see which services qualify for rebates.
✔ Leverage telehealth: Schedule online consultations when possible.
Travel and Passport Changes
Planning to travel in 2025? Here’s what’s changing:
- UK Travel Requirements: Australians will need an Electronic Travel Authorisation (ETA) from January 8, 2025. This $20 fee allows multiple visits of up to six months within two years.
- Passport Prices: Expected to increase in line with inflation.
- Streamlined Border Processes: New technology will reduce wait times at airports.
Practical Advice
✔ Apply early: Avoid delays by renewing passports and ETAs in advance.
✔ Budget for costs: Factor in potential price hikes for travel documents.
✔ Use SmartGate: Ensure your passport qualifies for automated border clearance.
Superannuation Contributions Increase
From July 1, 2025, the compulsory superannuation contribution rate will rise from 11.5% to 12%. This increase ensures stronger retirement savings for Australian workers.
Practical Advice
✔ Review contributions: Ensure your employer updates your super to the new rate.
✔ Consider salary sacrificing: Contribute extra to maximize tax benefits.
✔ Use retirement calculators: Estimate future savings using the ATO’s Superannuation Calculator.
✔ Check fund performance: Regularly review how your super fund is performing.
These Centrelink and Medicare updates in 2025 aim to enhance financial security and healthcare access for Australians. By staying informed and taking proactive steps, you can maximize your benefits and prepare for the changes ahead.
