What the 2025 Federal Budget means for older Australians

On Tuesday, May 25, Treasurer Jim Chalmers presented the 2025 Budget, which focused on easing the cost of living for all Australians.

While much of the attention was on this broader goal, there are several key measures in the Budget that directly benefit older Australians, aiming to improve your quality of life and address some of the challenges you face.

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.

By the end of the decade, 4 out of 5 Australians will live within a 20-minute drive of one of these clinics, which will be open early, late, and on weekends.

While challenges still remain, this year’s Budget introduces a number of important changes that can help improve your day-to-day life.

With lower energy costs, reduced prescription prices, improved pay for aged care workers, and stronger Medicare services, there’s a real focus on making life more affordable and accessible for older Australians.