Advocates ‘disappointed’ after 2025 Federal Budget falls short for older Australians

Advocates have welcomed some cost of living measures for older Australians in the 2025 Budget, but they are disappointed that key measures—such as improvements to housing affordability and dental care—were left out.

Council on the Ageing (COTA) Chief Executive Officer (CEO), Patricia Sparrow, welcomed some measures in the Federal Budget, such as the $150 energy subsidy, tax cuts for over 50s paying tax, GP bulk billing to all Australians, stating that the reforms will provide some practical relief for many older people.

“As a whole, the Federal Budget recognises that Australians, including older Australians, are really feeling the pinch of the cost of living crisis and takes steps to alleviate some of that pressure,” Sparrow said.

However, Sparrow criticised the Federal Government for failing to address crucial areas such as housing affordability and deeming rates. A key omission, Sparrow said, was the absence of a Seniors Dental Benefit Scheme. Access to affordable dental care, she pointed out, is vital for good overall health, but remains unaffordable for many Australians.

“Good oral health is important for people of every age, but for many Australians – including many older Australians – access to the affordable dental support they need is out of reach, even more so at this time when cost of living pressure are stretching financial resources to the max,” Sparrow said.

“We can’t afford to wait any longer for our politicians to realise that this is a health crisis that needs to be urgently addressed this election – not just for older people, but for people of all ages.”

In addition, Sparrow said the Federal Government needs to publicly confirm its intentions on freezing pensioner deeming rates.

“Deeming rates are used by government to estimate the amount of income pensioners earn from financial assets and can reduce the pension amount someone receives,” Sparrow said.

“Continuing to freeze deeming rates at current levels would go some way to meeting the increased cost of living pressures faced by people on lower and fixed incomes like those on the age pension.”

Other measures missing from the budget include a seniors’ default NBN plan, targeted action to address ageism, funding for more Support at Home packages and more relief on addressing housing affordability.

While many will be disappointed with these omissions, there are several key measures that will directly benefit older Australians.

From extending energy bill relief to reducing the cost of medicines and strengthening Medicare, this year’s Budget includes initiatives designed with older Australians in mind. Here’s a breakdown of what’s in it for you.

Energy bill relief

The rising cost of energy has been a major concern, and the Budget addresses this with a significant investment in bill relief.

An additional $1.8 billion will extend energy bill rebates, which will benefit every household and around one million small businesses, meaning Australians will see another $150 knocked off their energy bill this year.

The Government is also making sure energy companies offer better deals for customers, and there will be additional focus on ensuring pensioners receive the discounts they are entitled to.

Increasing pay for aged care workers

The 2025 Budget places a strong emphasis on improving the pay for aged care workers, who provide critical care to older Australians.

An extra $2.6 billion will fund pay rises for aged care nurses, effective from March this year. For workers covered by non-compete clauses, wages will rise by up to $2,500.

This investment ensures that the people who care for you and your loved ones are compensated fairly for their crucial work.

Reducing the cost of medicines

The cost of medicines is a significant concern, especially for older Australians who rely on prescriptions for their health. This year’s Budget includes measures aimed at making medicines more affordable.

The maximum cost for a Pharmaceutical Benefits Scheme (PBS) script will drop from $31.60 to $25.

Pensioners and concession cardholders will continue to pay just $7.70 per script, as the Government has frozen these costs.

In addition, $1.8 billion will be invested in adding more life-saving medicines to the PBS, making it easier to access the treatments you need at a lower cost.

Strengthening Medicare

Medicare plays a crucial role in supporting the health of older Australians, and the 2025 Budget delivers a record $8.5 billion to improve the system.

The goal is to increase bulk billing rates, with the aim of having 9 out of 10 GP visits fully bulk billed by the end of the decade, reducing out-of-pocket expenses for visits to the doctor.

The Budget includes plans for 4,800 fully bulk-billed practices across the country, making it easier to see a doctor without worrying about the cost.

Additionally, there will be new incentives to encourage doctors to train as GPs, along with scholarships for nurses and midwives. The Budget also includes a $644 million investment to open 50 more Medicare Urgent Care Clinics, which will make it easier for you to access urgent care without having to visit a hospital emergency department.