As the cost of living continues to rise in Australia, the federal government has stepped in with various support measures aimed at easing financial pressures on households. One of the most talked-about initiatives for 2025 is the $260 Cost-of-Living Rebate. But how do you know if you’re eligible, when you’ll get paid, and how you can ensure your bank details are up-to-date to receive the payment? This guide breaks it all down, providing everything you need to know to claim your rebate.
What is the $260 Cost-of-Living Rebate?
The $260 Cost-of-Living Rebate is a one-time payment designed to help Australians reclaim unclaimed Medicare funds. Many Australians were unaware that they had unclaimed refunds from Medicare due to outdated or missing bank details. This rebate aims to return the money that is rightfully owed to these individuals, giving them a little extra financial relief as costs continue to rise.
Rather than a new government welfare payment, this rebate consolidates unclaimed Medicare refunds into a single, easy-to-receive payment. Whether you’re a busy professional, a retiree, or someone juggling family expenses, this rebate can offer much-needed support.
Why Does This Matter?
A 2024 audit found that over 930,000 Australians had unclaimed Medicare refunds, often due to incorrect or missing bank details. Some people had changed banks, moved, or simply never added their banking information to Medicare records. These unclaimed refunds came from various services, including doctor visits, scans, and other medical expenses.
For example:
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Sarah, a university student, moved multiple times and didn’t update her bank details with Medicare. After updating her information in early 2025, she was able to claim the $260 rebate.
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James, a pensioner, had unclaimed funds from 2022. With help from his daughter, he updated his details via the Express Plus Medicare app and received his rebate shortly after.
Who Is Eligible for the $260 Rebate?
To qualify for the $260 rebate, you need to meet the following criteria:
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Unclaimed Medicare Benefits: Medicare must owe you a refund for medical services you paid for out-of-pocket but didn’t receive due to missing or outdated banking details.
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Updated Bank Details: You must have updated your bank information before the government’s processing deadline. Notifications were sent to encourage Australians to update their details via myGov, the Express Plus Medicare app, or in-person services.
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Active Medicare and myGov Accounts: You must have an active and verified Medicare account, linked to your myGov account.
When Will the Payment Be Made?
Payments for the $260 rebate began in February 2025 and will continue through April 2025. However, if you updated your bank details closer to the deadline, your payment may be processed later in the year. If you haven’t received your rebate yet, be patient—it’s still rolling out!
How to Update Your Bank Details
If you think you’re eligible but haven’t received the rebate, here’s how you can make sure your bank account details are up-to-date:
Via myGov:
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Log in to your myGov account.
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Select Medicare from your linked services.
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Go to Profile, then Bank Details.
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Enter your current bank account information and save it.
Using the Express Plus Medicare App:
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Download the Express Plus Medicare app from your app store.
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Log in securely with your myGov credentials.
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Tap on Update Details and enter your new bank information.
By Phone or In-Person:
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Call Medicare directly at 132 011.
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Visit a Medicare service center for face-to-face assistance.
Other Financial Assistance Programs
In addition to the $260 Cost-of-Living Rebate, the Australian government has several other programs designed to ease financial burdens, such as:
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Energy Bill Relief Fund: Offering rebates up to $300 on power bills.
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Family Tax Benefit Supplements: Additional payments for eligible families.
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Rent Assistance: For eligible Centrelink recipients paying rent.
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Youth and Student Payments: Includes Youth Allowance and Austudy for students, apprentices, and jobseekers.
Frequently Asked Questions (FAQs)
Q1: Is this rebate taxable?
No, the $260 rebate is not taxable and does not count as income for any other government payments you may be receiving.
Q2: I moved recently. Will that affect my eligibility?
Not if you’ve updated your Medicare details, especially your bank information and address.
Q3: What if I missed the deadline?
You might still be able to claim the unclaimed Medicare refund—but not under the rebate program. Contact Medicare directly at 132 011 for assistance.
Q4: Can I get more than $260?
No. The $260 rebate is a one-time payment regardless of how much you were originally owed.
Q5: What if I didn’t receive the payment yet?
It’s possible your payment is still in progress. If you updated your bank details late in the process, it may take until April 2025 or later. Be sure to double-check your bank details are correct and that your Medicare account is active.
The $260 Cost-of-Living Rebate is a simple but important initiative that ensures Australians can reclaim money they are owed. It’s an easy way for the government to help ease the financial burden that many households are experiencing right now. Make sure to update your details to avoid missing out on your rebate!
