Millions of Australians will soon pay no more than $25 for vital medicines under the Pharmaceutical Benefits Scheme (PBS), with the Albanese Government delivering another major cost-of-living measure in next week’s Budget.
The move marks a more than 20 per cent reduction in the maximum price of PBS medicines, saving Australians over $200 million each year. It is the second major cut to medicine costs under the Labor Government, following the largest reduction in PBS history in 2023.
Prime Minister Anthony Albanese said the initiative would help Australians manage everyday expenses while keeping inflation in check.
“My Government will continue to deliver cost-of-living relief for all Australians,” he said.
“Cheaper medicines is another way we are helping with the cost of living, while putting downward pressure on inflation – our number one focus.”
The last time PBS medicines cost no more than $25 was in 2004. From January 2026, Labor’s $689 million investment will ensure that four out of five PBS medicines are cheaper for Australians. Pensioners and concession cardholders will continue to benefit from the freeze on their PBS medicine costs, locked at $7.70 until 2030.
Health Minister Mark Butler said the policy would not only support household budgets but also improve health outcomes.
“The last time Australians paid no more than $25 for a PBS medicine was over 20 years ago. Cheaper medicines are good for the hip pocket and good for your health.”
He contrasted Labor’s commitment to lower medicine prices with Opposition Leader Peter Dutton’s past record as health minister.
Labor has already delivered a series of cost-cutting measures for medicines, including:
- A 25 per cent reduction in the number of scripts needed before the PBS Safety Net kicks in (July 2022)
- The largest cut to the cost of medicines in PBS history, lowering the maximum script price from $42.50 to $30 (January 2023)
- 60-day prescriptions for Australians with ongoing health conditions (phased in from September 2023)
- Freezing PBS co-payments to stop prices rising with inflation for the first time in 25 years (January 2025)
Albanese reinforced the Government’s commitment to affordable healthcare.
“With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: we’ve got your back.”
Albanese has also announced a significant boost to healthcare access, with a commitment to increase bulk billing for all Australians. “We want more GPs to have signs like this out front – which is why we’re boosting bulk billing for all Australians,” he said.
Albanese also revealed plans to open 50 more free Medicare Urgent Care Clinics, building on the 87 already operating, ensuring that Australians can access the healthcare they need when they need it.
“With Labor, you’ll be able to see the GP for free.”
If re-elected, the Albanese Government will introduce legislation to bring the $25 PBS maximum script cost into effect from January 1, 2026.
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