Updated 1 October 2026. We’ve refreshed this article to reflect the measures in place now, starting with the card surcharge ban that began today.
With the RBA lifting the cash rate four times this year, most recently to 4.60% on 29 September, household budgets are under real pressure. Yet there is some genuine relief out there, and much of it only works if you know about it and act. Here are the cost of living changes that matter right now, and what they could mean for you.
1. Card Surcharges Are Banned From 1 October 2026
From today, businesses can no longer add a surcharge when you pay by card on the eftpos, Mastercard or Visa networks. That covers debit, credit and prepaid cards, in shops and online. According to the Reserve Bank, the change comes with lower fees for merchants, which should help businesses absorb the cost.
A few things are not covered:
- American Express, PayPal and buy now, pay later services sit outside the RBA’s ban, although the RBA notes some of these providers have chosen not to allow surcharging.
- Taxi fares remain under state rules.
- Service fees, booking fees and weekend or public holiday surcharges can still apply, as long as they are not a fee for paying by card.
If you are still charged a card surcharge on these networks, raise it with the business first. If that doesn’t resolve it, you can report it to your state consumer protection agency, such as NSW Fair Trading. The RBA’s surcharging FAQs explain the rules in detail.
2. Electricity Prices Have Eased for Many Households
The default market offer, the price cap for households on standard plans, fell from 1 July 2026 in most regions. According to the Australian Energy Regulator, NSW residential prices dropped by about 3.4% to 5% ($66 to $137 a year) and south east Queensland by 7.2%, while South Australia rose 1.4%. Victoria’s default offer also fell by around 5% for most households.
There is also a new Solar Sharer Offer. In NSW, south east Queensland and South Australia, it gives households at least three hours of free electricity each day in the middle of the day. You need a smart meter and you must opt in through your retailer. Renters can take part too. Running the dishwasher, washing machine or pool pump in that window can make a real difference.
One change to be aware of: the federal Energy Bill Relief Fund rebates ended on 31 December 2025, so bills no longer include that credit. It’s worth checking your plan against the default offer. If you’re moving house, our energy page explains how to compare plans when you move.
3. Tax Cuts and Pay Changes From 1 July
The tax rate on income between $18,201 and $45,000 dropped from 16% to 15% on 1 July 2026, which is worth up to $268 a year for most taxpayers. It is legislated to fall again to 14% from 1 July 2027. From the same date, Paid Parental Leave increased to 26 weeks, and employers now pay super with each pay cycle rather than quarterly.
If your take-home pay went up in July, consider sending the extra straight to your offset account or as an extra loan repayment, before it disappears into everyday spending.
4. Cheaper Medicines
Since 1 January 2026, the most you pay for a PBS-listed medicine is $25, down from $31.60, according to the Department of Health. For households with ongoing prescriptions, that adds up across the year.
5. Public Transport Fare Relief
In Victoria, public transport fares are half price for everyone until 31 December 2026, and children under 18 travel free with a Youth myki. In Queensland, 50 cent fares are now permanent. NSW has not introduced a similar fare cut, so Sydney commuters should check they are on the right Opal fare caps.
What Happened to the Fuel Excise Cut?
The temporary cut to fuel excise that started on 1 April 2026 has now finished. Excise was halved until 30 June, a smaller discount applied until 2 August, and the full rate returned after that. If your fuel spend has crept back up since August, that’s why.
What This Means for Your Home Loan
These measures help at the edges, but for most homeowners the biggest number in the budget is the mortgage. After four rate rises this year, it’s worth checking where you stand. Our September rate rise article explains what the latest increase means for repayments.
- Check your rate. Lenders often save their sharpest rates for new customers. A refinance or a rate review with your current lender could offset some of this year’s increases.
- Use your offset. Every dollar in an offset account reduces the interest you pay, so park the savings from the changes above there.
- Ask early if you’re struggling. Lenders have hardship options, and they work best before repayments are missed. Our financial difficulty and hardship hub explains how they work.
A quick conversation with a broker costs nothing and could uncover savings worth thousands. Get in touch and we’ll review your loan against the lenders on our panel.
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply. Consider whether it is appropriate for you and speak to us for advice specific to your situation. Government measures can change, so check the linked official sources for the latest details.
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