Budget delivers for health but no boost to Home Care
National Seniors Australia welcomes cost-of-living and health measures in the 2025 Federal Budget, but is disappointed other areas didn’t get attention.
This budget is all about the looming federal election. To many, the 2025 budget appeared modest because most of the big spending cost-of-living relief and health initiatives had already been announced in an attempt to woo voters in time for an earlier election.
Here are budget items of interest to older Australians.
Bulk billing: As previously announced, $8.5 billion is budgeted over four years to boost bulk billing at GP clinics. The aim is for nine out of 10 doctor visits to be free by 2030. The Coalition pledged to match it when it was first announced.
Medicines and prescriptions: The cost of Pharmaceutical Benefits Scheme (PBS) medicines for pensioners and concession cardholders will be frozen at their current level of $7.70 until 2030. For others, the maximum price of medications under the PBS will be capped at $25, down from $31.60. This change would take effect from 1 January 2026 if the government is re-elected. The Coalition has also promised to match this.
Urgent Care Clinics: 50 new bulking billing Medicare Urgent Care Clinics around Australia to open during the 2025-26 financial year – allowing four in five Australians a 20-minute drive to a clinic, according to the Department of Health and Aged Care.
Medicare levy threshold: Raising the Medicare levy income thresholds, will mean more low-income earners and some pensioners will be exempt from paying the Medicare levy. The thresholds will increase by 4.7% with the levy now kicking in for single seniors and pensioners at an income level of $43,020 (up from $41,089) and for family seniors and pensioners at $59,886 (up from $57,198).
Private health insurance: While there is a strong focus on the public health system, National Seniors Australia (NSA) is disappointed there was no funding to establish a Productivity Commission inquiry to address rising premiums and out-of-pocket health costs in the private health system.
Read more about our campaign to bring down costs including private health insurance.
The good: Spending on aged care services is forecast to increase by more than $906 million in 2025-26. NSA supports the wages boost for 60,000 aged care nurses as a means of improving the quality of care for older people. In his budget speech, the Treasurer, Dr Jim Chalmers, said the pay rise will mean “the workers we trust to care for our parents and grandparents will get paid properly for the work they do."
The bad: NSA is disappointed there are no funds for additional home care packages to reduce the current wait list. CEO Chris Grice said, “While funding reform will increase access to home care in the future, we had hoped that short-term funds would become available to reduce the 12-18-month wait list to three months as recommended by the Aged Care Royal Commission.”
Energy bill relief: All households, including pensioners, will receive an extension of the current energy bill subsidy, receiving a $150 rebate for a further six months until the end of 2025.
Deeming rates: NSA would have liked to have seen an explicit reference to a continuation of the freeze on deeming rates beyond 1 July 2025, after a recent article in the Australian Financial Review said this would be a feature of the budget. The freeze announced in the previous Budget only extends until 30 June 2025. “If the freeze is lifted,” Mr Grice warned, “part-pensioners will see a cut to their pension payment. We for the freeze to continue until the method used to calculate deeming rates is recalibrated.”
Tax cuts: Modest tax cuts were a surprise and welcome item in the budget. Mr Grice says the cuts will benefit older workers. “But National Seniors would have liked to have seen an exemption of income from the Age Pension Income test to encourage and support older people who need and want to stay in the workforce,” he said.
- Anti-scams: NSA also welcomes increased funding of the National Anti Scam Centre. “With older people increasingly targeted by scammers, we welcome the funding but would love to see a longer-term commitment to prevent and disrupt scammers,” Mr Grice said.
- Childcare: We also welcome investment in childcare to help parents and grandparents who care for young children and grandchildren, especially those who also care for elderly parents.
- Card surcharges: The government will address “unfair excessive” card surcharges, reaffirming its commitment to ban surcharges on debit cards.
In breaking news today, the Prime Minister called the 2025 election for 3 May.
It comes after the Opposition leader gave his budget reply speech promising, among other things, a 12-month cut to the fuel excise as an alternative to the tax cuts offered by Labor.
It’s a clear signal the major parties are trying to differentiate their cost-of-living pitches to voters.
Minor parties and independents will also be rolling out their policies during the election and could play a key role in the formation of government if current polls are accurate.
Our hope is that parties and candidates release policies targeted at improving the lives of older people over the course of the election.
Mr Grice said “Seniors are waiting to see what all parties and candidates put forward before they cast their vote. With one-third of voters over 60, seniors’ issues will be key to the outcome of the election.”
