The Australian government released its Federal Budget for 2025-26 tonight. For the aged care sector and older Australians, the budget includes measures affecting healthcare access, workforce funding, and cost-of-living pressures.
Bulk Billing Expansion for GP Visits
The budget allocates $7.9 billion to expand Medicare bulk billing, the largest single investment in the system in over 40 years. From 1 November 2025, all Australians, including an additional 15 million people, will be eligible for free GP visits for common services.
The goal is for nine out of ten GP consultations to be bulk-billed by 2030. A new Bulk Billing Practice Incentive Program aims to increase fully bulk billed practices to 4,800 by 2028-29.
For seniors, who often need regular medical attention, this could reduce out-of-pocket costs, though its success depends on GPs opting in, which isn’t guaranteed given past resistance from some practices.
Urgent Care Clinics and Hospital Funding
An additional $644 million will fund 50 new Medicare Urgent Care Clinics, increasing the total to 137 nationwide. These clinics, bulk billed and operational since 2023, have recorded over 1.3 million visits, intended to divert non-emergency cases from hospitals.
Public hospitals get $1.8 billion more in 2025-26, lifting Commonwealth funding to $33.9 billion – a 12% rise. This is meant to shorten elective surgery waitlists (e.g., for hip or knee replacements), cut emergency room delays, and reduce ambulance ramping.
However, with state governments co-managing hospitals, delivery could falter if coordination lags, a frequent critique of the current administration.
Aged Care Workforce Funding
The budget provides $2.6 billion for pay rises for aged care nurses from 1 March 2025, part of a broader $17.7 billion commitment following the Royal Commission into Aged Care Quality and Safety.
An extra $291.6 million supports ongoing reforms. This could stabilise staffing in a sector plagued by shortages, but critics argue the government’s track record on implementation is shaky, and wage increases alone won’t fix deeper systemic issues like burnout or poor working conditions.
Medicine Costs and PBS Listings
From 1 January 2026, the maximum PBS co-payment drops from $31.60 to $25.00 for non-concession cardholders, while pensioners’ costs stay at $7.70 per script. Four out of five PBS medicines will be cheaper, with 60-day prescriptions offering further savings.
For example, a pensioner on empagliflozin for diabetes might save $85.80 annually, or more with longer scripts. The budget also commits $1.8 billion to list new drugs, including menopause treatments and endometriosis options, potentially aiding older women.
Savings are real but modest, and access depends on prescribers adopting the changes.
Tax Cuts and Energy Rebates
Tax cuts continue, with the 16% rate for incomes between $18,201 and $45,000 dropping to 15% in July 2026, then 14% in 2027, adding up to $536 yearly for average earners by 2027-28.
Low-income seniors and pensioners benefit from a 4.7% rise in Medicare levy thresholds from July 2024, saving up to $122 if exempt. Energy relief extends with $1.8 billion for two $75 rebates per household through 2025, totalling $150.
These measures offer some relief, but their impact is diluted by inflation, and critics slam the government for not addressing root causes like energy market instability.
Housing and Rent Assistance
The budget includes $9.3 billion for states to tackle homelessness, repair social housing, and double homelessness funding to $400 million yearly.
Commonwealth Rent Assistance rises by 45% for about one million households, including older renters. While this could help seniors at risk of housing insecurity, the government’s housing strategy has been panned as inadequate, with supply still lagging demand.
Women’s Health Measures
A $792.9 million package funds menopause health assessments via Medicare, new PBS listings for hormone therapies (saving around 150,000 women money), and 11 additional endometriosis clinics.
Older women may benefit, but the rollout hinges on training enough health professionals, an area where the government has faced delays before.
The Bigger Picture
For aged care and seniors, the budget brings free GP visits, hospital funding, nurse pay rises, cheaper medicines, and modest tax and energy relief. These could ease some pressures, particularly for those on fixed incomes or in care.
Yet, the government’s ability to deliver is under scrutiny – given past promises have stumbled on execution, and systemic issues like aged care quality and rural healthcare access remain unresolved despite being key issues of the Albanese Government’s initial election campaign.
