What Changes on January 1: Cheaper Medicines, Higher Energy Bills

Cheaper medicines and higher payments begin in the new year, but households also face the end of energy subsidies and other policy changes.

A man uses a fuel dispenser to fill his car up with petrol at a petrol station in Melbourne, Australia, on July 23, 2013. Scott Barbour/Getty Images

When Australians wake up to a new year, changes to government payments and policies will impact the finances of millions of households.

From Thursday, the maximum cost of medicines on the Pharmaceutical Benefits Scheme will be slashed from $31.60 to $25 - the lowest the co-payment has been since 2004, saving Australians over $200 million each year.