Kaye Fallick is a best-selling author and the founder of YourLifeChoices website. She is a passionate advocate for those over 60. Learn more about her work on her website: Staying Connected.​

I’m thrilled to have been invited to report on matters financial for all Seniors Discount Club members.

Today I’m covering last night’s Federal Budget (2025-2026), or to be precise, just the items that older Australians need-to-know. The good news is that I’ve slogged through all the petty detail on your behalf and organised what matters most into five categories:

• Health
• Wealth
• Housing
• Energy
• Aged care

The Federal Budget Impacts YOUR money. But how? Image source: Free Pik

Health
The main announcement in health was made a few weeks back – and immediately matched by the Federal Opposition. This relates to an 8.5 Billion expansion of bulk billing and nearly $700 million to reduce the cost of most of the medicines on the Pharmaceutical Benefits Scheme by about $6 per script. Retirees with concession cards have script prices frozen at $7.70 already.

Wealth
Whilst not announced, there is widespread reporting of a further 12-months freeze on the deeming rates, the method with which Centrelink assesses your financial assets for eligibility for an Age Pension. These rates were frozen during the Covid Pandemic and remain at an all-time low for a year longer now. Assuming this is correct, it is a ‘biggie’ as, with rates at 0.25% (lower) and 2.25% (higher), most Age pensioners are ‘deemed’ to earn much less than they actually do on shares, savings and super balances.

Housing
While not aimed specifically at retirees, the expanded ‘Help to Buy’ Scheme could help older Australians who struggle to achieve enough for a deposit for their own home.

Energy
A universal $150 discount will be paid quarterly until end 2025. And the good news is that you don’t have to do anything to get this rebate , your supplier applies this discount to your bill. But it’s worth keeping an eye on your energy statements to ensure that this does happen.

Aged Care
Pay rises for Aged Care workers (as previously determined by the Fair Work Commission) will be delivered, providing more capacity to our under pressure aged care system.

Most of the above measures were selectively released to the general media in the weeks prior to the 25 March Budget announcements. But there was one sneaky surprise that Treasurer Jim Chalmers saved for his big night. This was a modest tax cut for all workers. If you are still working and don’t need the extra dollars, using this money to salary sacrifice more into your super could be a smart idea.

Is this a ‘good’ budget overall?
Given Australia has slipped back into deficit, there was never going to be a major pre-election spending splurge. The reported deeming announcement gives some security to the 2.6 million or so Australians who are receiving the Age Pensions. As noted above, the rates remain well below what retirees can actually earn on their financial investments, so it’s a great ‘free kick’.

What would have been helpful, had the spare funds been available, is an increase in the base rate of the Age Pension – a rate which has not been altered since PM Kevin Rudd increased it during the Global Financial Crisis of 2007. That’s a long way back and it’s fair to argue that, despite twice yearly indexation, the value of the full Age Pension has been severely eroded since that time, particularly for renters.

And then there’s the vexed issue of Commonwealth Rent Assistance which, despite yesterday’s planned increase, remains far too low for those on government benefits to find secure and viable accommodation.

Enough from me, over to you… Which measures in the Budget do you most appreciate? And which would you give the thumbs-down?

About the Author: Kaye Fallick is a writer and best selling author. She is also the founder and former publisher of the YourLifeChoices website which she believes gave her a 20-year ‘apprenticeship’ in learning the health, money and lifestage dramas and concerns of Australian baby boomers. She’s an advocate for Australians over the age of 60 and we are delighted to have her on board, writing content for you. If you’d like to know more about Kaye, you can visit her website, Staying Connected.

The views expressed in this publication are those of the author.

 

[Ellev]

The ones that might need help is single Mums who choose to go back to work rather than rely on Centrelink and those who choose to study to get an alternative job so they can go to work.

Yes or better still get the deadbeat parents avoiding child support to pay up.

 

[foreman62]

I find it very hard to understand.... Government okays an increase in electricity prices but then the Government gives us money to pay for the increase. Why say yes to an electricity increase in the first place?? It happens every year!! I do know things go up but in Western Australia, we have one (yes, one) electricity provider so we don't have a choice, no competition, they charge & are not accountable for your bills. Meaning, Western Power (meter readers) & Synergy work together so when you get bills saying "estimate" readings, you need to study the bill. I am single & received 3 bills in the 60 day bill period, totalling $1800! They said my 6yr fridge was too old, couldn't read my meter (nothing in the way & never had a problem before), hardly turned evaporative air con on, always turned off dryer & washer off etc etc. Normally my bills are $260. My case is not unique. In the end, the bill was reduced to $1500!! I had to pay so my credit rating didn't suffer. I am 5 yrs off a pension. I am using my own money to live & it's draining my bank account. No one will give me a job because I am too old. I started gardening but my osteoarthritis & pinched sciatica nerve has made me stop. Used to be a Laboratory Assistant but that is physical work. Still working out what I can do because I certainly don't want "0" in my bank acct.

 

[Kevin. A.]

I don't trust the politicians they give with one hand and take twice as much back in the other.

 

[Kevin. A.]

I find it very hard to understand.... Government okays an increase in electricity prices but then the Government gives us money to pay for the increase. Why say yes to an electricity increase in the first place?? It happens every year!! I do know things go up but in Western Australia, we have one (yes, one) electricity provider so we don't have a choice, no competition, they charge & are not accountable for your bills. Meaning, Western Power (meter readers) & Synergy work together so when you get bills saying "estimate" readings, you need to study the bill. I am single & received 3 bills in the 60 day bill period, totalling $1800! They said my 6yr fridge was too old, couldn't read my meter (nothing in the way & never had a problem before), hardly turned evaporative air con on, always turned off dryer & washer off etc etc. Normally my bills are $260. My case is not unique. In the end, the bill was reduced to $1500!! I had to pay so my credit rating didn't suffer. I am 5 yrs off a pension. I am using my own money to live & it's draining my bank account. No one will give me a job because I am too old. I started gardening but my osteoarthritis & pinched sciatica nerve has made me stop. Used to be a Laboratory Assistant but that is physical work. Still working out what I can do because I certainly don't want "0" in my bank acct.

You may need to get your 6-year-old fridge looked at. We had a similar issue a few years ago and we found it was our fridge. The thermostat had gone, and the fridge was working overtime. Our fridge was well over 6 years old. We felt the side of the fridge and it was really hot. We got rid of the old fridge and our electricity bill went down. Cheers.

 

[Skeeta22]

For those relying solely on the Age Pension, the increase is a real slap in the face, it doesn't even cover the cost of one takeaway coffee a fortnight let alone the horrendous increases we are all facing at the supermarket check out and rent increases. I wish Mr Albanese would take another look at the Aged Pension amount and try to live on it himself then he'd see how hard many are doing it.

 

[Rellybee]

I strongly object to the government propping up child care, if you're a parent who wants to work it's no up to the taxpayer to pay for child care, when I was a kid Dad went to work Mom was home looking after us kids and home.
If the families want 2 incomes the taxpayers should not have to pay for other people's childcare, this should be taken of the table to make the parents responsible for the full-time care of their children.

Except today though ...it's way more harder to get anywhere without two incomes.....It's about the struggle to save for the deposit.This is where the banks are ripping people off.

 

[IAN3005]

IT'S NO JOKE,IT'S A INSULT

That goes without saying

 

[Miss Chris]

I’m another one who will get no benefit from the budget.
Instead of Albo wasting taxpayers money on crazy crap he could have had a budget that was not in deficit and actually helped regular Aussies. But no they wanted to spend it on this nonsense-
$2 billion to Ukraine (oh it’s been revised down to “over $1.5 billion” now - how nice)
$1.44 billion to Pacific Rim countries
$650 million for a rugby club in PNG
$450 million for a useless referendum
$450 million for two new RAAF jets for Albo
$800 million to cancel the French sub contract
$500 million for the first payment on the new submarine contract
$100 million to the WHO (thanks Penny Wrong)
$18 Billion (yes Billion) to build new bases for the US military in northern Australia
$8 billion for a new submarine base in WA for the US Navy

God and Canberra bureaucrats only know what other stupid things taxpayers money is being wasted on…..

Looks like they’re only paying lip service to the needs of the elder population….you know…..those people who have paid their dues and deserve to have at least a comfortable retirement, including aged care when needed……..They’ve just given a nod so that they can say we were catered for….

 

[Miss Chris]

I strongly object to the government propping up child care, if you're a parent who wants to work it's no up to the taxpayer to pay for child care, when I was a kid Dad went to work Mom was home looking after us kids and home.
If the families want 2 incomes the taxpayers should not have to pay for other people's childcare, this should be taken of the table to make the parents responsible for the full-time care of their children.

I never thought about it like that….its a good point…

 

[Jest]

Please, can someone please explain to me why we are paying to build new bases for the US military in our country? If the US wants to have bases here then they should lease (not buy) the land they want & cover the cost of building & all other services they require. This is NOT MY responsibility.

heard of peeing in their pocket. he is a pee-er.

 

[Jest]

not one agreement. please do the sensible thing may 3rd. kick out labour.

 

[Jennie]

Please, can someone please explain to me why we are paying to build new bases for the US military in our country? If the US wants to have bases here then they should lease (not buy) the land they want & cover the cost of building & all other services they require. This is NOT MY responsibility.

Totally agree. I didn't realise we paid for them until reading about it here.

 

[freedy50]

My pbs medications got taken off the pbs so nkw paying the full price and now that chemist warehouse has merged with whoever it wae they have doubled their price of one of them and that is who chemists match their prices with so my medications have risen drastically. Everytime the government puts something on the pbs they take some off to save money. They cannot just keep adding so lots of people out there are losing money big time. And I said scripts would go up when chemist warehouse merged and how right I was. and it has only just started.

I've given up with CW. They started using pills from a company called Wagner which I think they own? All the packets were looking the same. I preferred the different brands so I knew what I was doing.
Now found a different good chemist and not so busy.

 

[Beany]

Retirees with concession cards have script prices frozen at $7.70 already. As soon as this shower got into power my medicines rose from $6.20 to $7.90mdoesnt'seem much but when is it effects 8 different medications per month it soon mounts up along with all the other cost of living rises we have had to endure. We are already on the ropes these arseholes won't be satisfies until we are down for the count.

Mine didn't rise to 7.90, perhaps you should ask your chemist why that much increase. if you were paying 6.20 are you not on the PBS scheme where you pay up to a certain amount and then they are free?

 

[Kevin. A.]

For those relying solely on the Age Pension, the increase is a real slap in the face, it doesn't even cover the cost of one takeaway coffee a fortnight let alone the horrendous increases we are all facing at the supermarket check out and rent increases. I wish Mr Albanese would take another look at the Aged Pension amount and try to live on it himself then he'd see how hard many are doing it.

Mr. Albonese is too busy living in his multimillion-dollar mansion to worry about those on the Pension. Don't forget he allocated over 100 million dollars to improve the access road to his new mansion. I mean really you have to get your priorities right.

 

[IAN3005]

There is not one thing in this Budget that alters or benefits my life. My rent alone has gone up by $60/mth while my pension just went up by $9.20/mth. I get half of the electricity support that I got last year. My doctor already Bulk Bills me. Petrol goes up. Groceries go up. Everything has gone up, but I/we get $9.20!! Where does this Govt. think I can keep covering the cost of living increases? And I fear the Dutton Govt. will be just as bad. We are not welfare recipients. We are pensioners who have paid our way all our lives. But I'm 76 years and single female so have to rely on this pension... and it just gets harder.

We need to protest... my rent went up 11.8% to $900 a WEEK, electricity 13.22%, gas 12.3%, food is up, and I anticipate an increase in the phone, private medical... so pray tell where the so called 'BOOST' IS!!!!! All spin by the snake oil salesman who talks with forked tongue.

 

[Anthony Ellul]

I find it very hard to understand.... Government okays an increase in electricity prices but then the Government gives us money to pay for the increase. Why say yes to an electricity increase in the first place?? It happens every year!! I do know things go up but in Western Australia, we have one (yes, one) electricity provider so we don't have a choice, no competition, they charge & are not accountable for your bills. Meaning, Western Power (meter readers) & Synergy work together so when you get bills saying "estimate" readings, you need to study the bill. I am single & received 3 bills in the 60 day bill period, totalling $1800! They said my 6yr fridge was too old, couldn't read my meter (nothing in the way & never had a problem before), hardly turned evaporative air con on, always turned off dryer & washer off etc etc. Normally my bills are $260. My case is not unique. In the end, the bill was reduced to $1500!! I had to pay so my credit rating didn't suffer. I am 5 yrs off a pension. I am using my own money to live & it's draining my bank account. No one will give me a job because I am too old. I started gardening but my osteoarthritis & pinched sciatica nerve has made me stop. Used to be a Laboratory Assistant but that is physical work. Still working out what I can do because I certainly don't want "0" in my bank acct.

i more than sympathise with you. Keep the chin up.

 

[Suebee58]

There is not one thing in this Budget that alters or benefits my life. My rent alone has gone up by $60/mth while my pension just went up by $9.20/mth. I get half of the electricity support that I got last year. My doctor already Bulk Bills me. Petrol goes up. Groceries go up. Everything has gone up, but I/we get $9.20!! Where does this Govt. think I can keep covering the cost of living increases? And I fear the Dutton Govt. will be just as bad. We are not welfare recipients. We are pensioners who have paid our way all our lives. But I'm 76 years and single female so have to rely on this pension... and it just gets harder.

I totally understand you. I’ve worked since I was 15 and now have t explain every detail of why I’m having to withdraw from my super!

 

[Lolli]

I strongly object to the government propping up child care, if you're a parent who wants to work it's no up to the taxpayer to pay for child care, when I was a kid Dad went to work Mom was home looking after us kids and home.
If the families want 2 incomes the taxpayers should not have to pay for other people's childcare, this should be taken of the table to make the parents responsible for the full-time care of their children.

The one that I most strongly disagree with is free child care three days a week even if you're not working.

 

[gilbo555]

As you said there are over $2.5 m. Pensioners and we are all finding it tough. Very few of these pensioner voters pay any income tax. So Albo's tax relief does NOT help at all. I haven't paid income tax for 15 Years. We need a realistic increase in pensions.