The new year is bringing significant financial relief to millions of Australian families. Here's what's changing and how much you could save.

If you've ever felt penalized for not working enough hours to qualify for childcare subsidies, relief is finally here. From 5 January 2026, Australia is scrapping the controversial activity test that left many families in limbo.

Here's the game-changer; every eligible family will now receive at least three days of subsidised childcare per week, regardless of whether you're working, studying, or looking for work. For Aboriginal and Torres Strait Islander families, that's even better, 100 hours of subsidised care each fortnight.

The impact? Around 66,700 families are expected to pocket an average of $1,370 in savings each year. That's real money back in household budgets at a time when every dollar counts.

The best part? If you're already receiving Child Care Subsidy, you don't need to lift a finger. Services Australia will automatically apply the changes. No phone calls, no paperwork, no stress.

More than a million Australians will see their fortnightly payments increase from 1 January 2026, thanks to indexation adjustments that reflect the rising cost of living.

Young families doing it tough will see real relief. If you're a single parent on Youth Allowance with dependent children, you'll receive an extra $17.60 per fortnight, bringing your maximum payment to $863.40.

For Australia's 680,000 carers, the unsung heroes who provide essential support to loved ones, Carer Allowance will increase by $3.30 to $162.60 per fortnight. While it may seem modest, every increase acknowledges the vital work carers do.

Students on Austudy and young people receiving Youth Disability Support Pension will also see increases of up to $17.60 and $17.20 per fortnight respectively.

Here's some welcome news for anyone managing chronic conditions or regular prescriptions. From 1 January 2026, the maximum cost of a PBS prescription is dropping from $31.60 to $25, a $6.60 saving per script.

If you're picking up multiple medications each month, those savings add up quickly. For someone on four regular prescriptions, that's over $300 back in your pocket each year. For families managing multiple health conditions, the relief could be even more substantial.

This change benefits millions of Australians who don't hold a Commonwealth concession card but still feel the pinch of healthcare costs.

Parents, here's one for you. The Child Dental Benefits Schedule is increasing its coverage by $26 to over $1,158 every two years for eligible children aged 17 or under.

Over the course of childhood, this program could provide more than $9,800 in dental coverage by the time your child turns 17. That's significant support for keeping young smiles healthy without breaking the family budget.

If you're eligible, watch for a letter from Services Australia in your myGov inbox in early January. No myGov account? They'll send it by post.

Here's a startling fact that deserves your immediate attention. There's currently over $271 million in unpaid Medicare benefits sitting unclaimed, owed to nearly one million Australians. Some individuals are owed more than $30,000 each.

Why haven't they been paid? In most cases, it's simple, outdated bank account details on file with Medicare.

Take five minutes today to log into your Medicare account through myGov or the myGov app and verify your bank details are current. You might discover you're owed money you didn't even know about.

For most changes, absolutely nothing. These updates are being applied automatically by Services Australia.

The one exception? Check your Medicare bank details to ensure you're not missing out on benefits you're entitled to.

Where to get more information:

Child Care Subsidy: servicesaustralia.gov.au/childcaresubsidy

Medicare bank details: servicesaustralia.gov.au/getmedicarebenefits

PBS information: servicesaustralia.gov.au/pbs

Child Dental Benefits: servicesaustralia.gov.au/cdbs

So, between cheaper childcare, increased payments, lower prescription costs, and better dental coverage, many Australian families could save thousands of dollars in 2026. Combined with the potential windfall from unclaimed Medicare benefits, it's worth taking a moment to ensure you're getting everything you're entitled to.

In a year that's likely to continue bringing financial pressure to households, these changes represent meaningful relief where it's needed most, in family budgets, at the pharmacy counter, and in supporting the next generation's health and education.

Start the new year right: check your details, claim what's yours, and make 2026 count.