From January 1 next year, a prescription on the Pharmaceutical Benefits Scheme (PBS) will cost Australians no more than $25.
The last time PBS medicine cost no more than $25 was in 2004, more than 20 years ago.
Federal Member for Robertson Dr Gordon Reid said the move was another key cost-of-living measure delivered by the Albanese Government.
He said having already slashed the cost of medicines – with the largest cut to the cost of medicines in the history of the PBS in 2023 – the government was now going even further.
It represents a more than 20% cut in the maximum cost of PBS medicines, which will save Australians more than $200M each year.
Pensioners and concession cardholders will continue to benefit from the freeze to the cost of their PBS medicines, with the cost frozen at its current level of $7.70 until 2030.
This builds on action the Federal Government has already taken to deliver cost-of-living relief through its Cheaper Medicines program.
This includes: more free and cheaper medicines, sooner; the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a general script falling to $30; 60-day prescriptions saving time and money for millions of Australians with an ongoing health condition; and freezing the cost of PBS medicines, with co-payments not rising with inflation for all Australians for the first time in 25 years.
All medicines that pharmacies can discount today can continue to be discounted once the co-payment is cut to $25.
The legislation includes specific provisions to protect the availability of discounting.
“The Federal Labor Government is delivering on its election commitments and providing cost-of-living relief to help Australians with the price of their medications,” Reid said.
“As an emergency department doctor, I see firsthand how this government’s policies are helping patients, particularly those with existing conditions to save money with their regular medication costs.”
Federal Health Minister Mark Butler said the government was focused on delivering cheaper medicines for Australians.
“Cheaper medicines are good for the hip pocket and good for your health,” he said.
“For general patients medicines haven’t been this cheap since 2004.
“For pension and concession card holders we’ve frozen your medicine prices at a maximum price of $7.70 until the end of the decade.”
