Seven major financial changes starting in the new year

At the start of every calendar year it's typical for new laws, pricing schemes and other reforms to kick in which directly affect many Australians. And 2025 will be no different.

So with the new year just around the corner, here's a run through of seven changes that will impact everyone from students and travellers to property owners.

1. Austudy and Youth Allowance payments will rise

At the start of every year a host of social support payments for younger Aussies - including Youth Allowance, Austudy, ABSTUDY and the Youth Disability Support Pension - are indexed in line with inflation.

This means that from January 1, 2025, more than one million income support recipients across the country will see their payments increase.

A single Youth Allowance recipient over the age of 18 and living away from home will see their payments rise by $24.30 to a maximum rate of $663.30 per fortnight.

A partnered recipient with children will see their payments rise by $26.30 to a maximum fortnightly rate of $718.10.

Meanwhile, single Australians receiving support through Austudy will see their fortnightly payments increase by $24.30 to a new maximum rate of $663.30.

For a rundown of the new rates set to apply from January 1, check out the Department of Social Services' indexation rates list. It's worth noting though that other payments, like the Aged Pension and JobSeeker, are indexed twice a year in March and September.

2. Financial support will open to regional students

Younger Australians from regional and remote areas who are planning to study away from home in 2025 may also be able to apply for financial support via the Tertiary Access Payment (TAP) from January 1.

To be eligible, applicants will need to be from an inner regional, outer regional, or remote area who are moving away from home to pursue full-time tertiary education.

They will also need to be entering their first year of study and aged 22 or under when their study begins.

The rate of payment varies though. Applicants from outer regional and remote areas can receive $5000 in their first year of study, split into a $3000 payment to help with upfront costs and a $2000 payment down the line.

Applicants from inner regional areas may be eligible for a one-off $3000 payment.

For a full breakdown of the various eligibility requirements and the application process, future students can visit the Services Australia website.

3. New wage theft laws are set to commence

Employers who deliberately underpay their employees will be subject to new laws which will make wage theft a criminal offense in Australia.

Companies that break the law will face fines as high as $7.8 million or the equivalent of three times the amount that was underpaid (if the theft exceeds the maximum fine).

Individuals may face up to ten years in prison and a maximum fine of $1.565 million.

There are exceptions though. Employers who unintentionally underpay their workers, or who accidentally pay the incorrect salary or wage to an employee, won't be penalised under the laws.

Small businesses may also avoid criminal prosecution for underpaying wages if they are able to comply with a new Voluntary Small Business Wage Compliance Code.

The government has previously indicated that the new laws will come in no later than January 1, 2025, though the Fair Work Commission notes that the small business code is still in development.

4. Some debit card surcharges will be banned

From January 1, Australians who make payments to Commonwealth agencies like the Australian Taxation Office (ATO) or Services Australia will no longer be hit with a surcharge when using a debit card.

The change was announced by the federal government last month after it received advice that the collection of surcharges by Commonwealth entities could be unlawful without legislation.

More broadly, the government has also established a review into the practice of card surcharging which is being spearheaded by the Reserve Bank.

Pending the outcome of the review, the federal government has indicated that debit card surcharges could be made illegal across the board in Australia from January 2026.

5. Private health extras will reset

While it varies from health fund to health fund, most Australians with private health insurance will see their annual extras limits reset on January 1.

This could apply to a range of health services depending on the plan in question, but might include everything from dental and physiotherapy to podiatry and remedial massage visits.

So for any Australians with unused benefits remaining, it may be worth booking an appointment before they expire at the end of the year.

6. Passport prices are likely to increase

Planning an overseas holiday next year? If you are, it might be time to check the expiry date on your passport and, if it needs renewing, getting your application in.

That's because Australian passport prices are subject to annual indexation at the start of every calendar year, which means that prices are likely to rise in a matter of weeks.

While the exact rise hasn't been revealed yet, it currently costs $398 for a 10-year adult passport.

According to an analysis of passport prices conducted by Compare the Market earlier in the year, that figure means that Australian passports are among the most expensive in the world.

7. More Victorian properties will be eligible for vacant land tax

More residential properties across Victoria will become subject to the states' vacant residential land tax (VRLT) from January 1, 2025.

The tax currently only applies to properties located in the inner and middle rings of Melbourne, but that will change from the start of the new year to include all parts of the state, aside from alpine resort areas like Falls Creek and Mount Hotham.

Introduced in 2018 by the state government as a measure designed to help improve housing supply, the VRLT applies to homes on residential land that have been left vacant for six months in the previous calendar year.

It may also be relevant in cases where homes have been under construction or left uninhabitable for two years.

Various rates do apply though, so for more information on those and for examples of residential properties that may be liable for the vacant land tax, check out the State Revenue Office guide.

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