Treasurer Jim Chalmers handed down the 2026-27 Federal Budget last night and while much of the focus has been on housing and tax reform for younger Australians, there are several important announcements that directly affect Australians over 60. Here’s everything you need to know in plain English — no jargon, no spin.
The Good News — Cheaper Medicines
This is one of the most significant wins for older Australians in this budget. The government is investing almost $6 billion to deliver cheaper medicines through the Pharmaceutical Benefits Scheme. The maximum general co-payment will be reduced to $25 and the concessional rate will be frozen at $7.70 until 2030. AusMed Health
For Australians over 60 who rely on regular prescription medications this is meaningful savings every single month.
Free RSV Vaccine
All eligible older Australians will have free access to the respiratory syncytial virus vaccine Arexyv which will be listed on the National Immunisation Program. AusMed Health
RSV is a serious respiratory illness that can be particularly dangerous for older adults. Getting this vaccine listed for free is a practical health win worth knowing about.
Medicare Levy Relief
The Medicare levy low-income threshold will be increased by 2.9% to provide tax relief for over one million low-income individuals, families, seniors and pensioners. Thedacare
For single seniors and pensioners the threshold will be increased from $43,020 to $44,268. If your income is below this level you will continue to be exempt from paying the Medicare levy. Allseniors
Pension Supplement While Travelling Overseas
This is excellent news for retirees who love to travel. Currently Australian pension recipients who travel overseas lose the majority of their pension supplement after six weeks abroad. The government will extend payment of the full rate of the pension supplement from 6 to 12 weeks overseas — expected to benefit around 92,000 pensioners who travel overseas for more than six weeks each year. Thedacare
If you’ve been holding back on a longer overseas trip because of pension concerns this change is worth knowing about.
Aged Care — $3.7 Billion Investment
The government is committing $3.7 billion into the aged care sector including $1 billion to fully subsidise and remove co-contributions for at-home personal care services through the Support at Home program. AusMed Health
This means Australians receiving at-home care support will no longer pay co-contributions for personal care services — a significant saving for many families.
At-Home Care Price Caps
The government will cap prices for at-home aged care from 1 July with the aim of preventing excessive charges. The pricing will take into account labour, travel, and admin fees while providers will also be required to publish their charges. AusMed Health
This is good news for anyone currently receiving or planning to receive home care support — it brings more transparency and protection against overcharging.
Superannuation — Important Changes for High Balances
Tax concessions will be cut for retirees with superannuation balances over $3 million as of 1 July 2026. Those affected will be subject to 15% tax on the proportion of earnings related to their total superannuation balance that exceeds the $3 million threshold. Those with $10 million or more will be subject to an additional 10% tax. AusMed Health
If your superannuation balance is under $3 million — which applies to the vast majority of Australians — this change does not affect you.
Private Health Insurance Rebate Change
The government has moved to reduce private health insurance rebates for Australians aged over 65 in line with the standard 24% rebate. AusMed Health
This means older Australians will receive a lower rebate on their private health insurance than previously. If you have private health insurance it’s worth contacting your insurer to understand exactly how this affects your premium.
What Wasn’t in the Budget — A Note of Caution
There were no direct measures announced in the 2026-27 Budget specifically for Australian pensioners and seniors beyond the measures outlined above. AusMed Health
Many senior advocacy groups including National Seniors Australia had called for a dedicated seniors dental benefit scheme, increases to Commonwealth Rent Assistance, and faster processing of home care packages. These were not included in this budget.
The Bottom Line for Australians Over 60
The 2026 budget delivered some meaningful wins — cheaper medicines, free RSV vaccine, better overseas pension arrangements, and significant aged care investment. The reduction in private health insurance rebates for over 65s is worth monitoring. If you have questions about how any of these changes affect your specific situation it’s worth speaking with a financial adviser or calling Services Australia on 132 300.
Did you find this helpful? Share it with a friend and join The Good Years Club community on Facebook where we break down news and information that matters to Australians over 60.