The Albanese Government is making cheaper medicines even cheaper – with legislation being introduced to Parliament this week that will mean a prescription on the Pharmaceutical Benefits Scheme (PBS) will cost Australians no more than $25 from 1 January next year.

The last time PBS medicines cost no more than $25 was 2004 – more than 20 years ago.

This is another key cost of living measure delivered by the Albanese Government.

Having already slashed the cost of medicines – with the largest cut to the cost of medicines in the history of the PBS in 2023 – we’re now going even further.

This is a more than 20 per cent cut in the maximum cost of PBS medicines, which will save Australians over $200 million each year.

Making medicines cheaper is a tangible way we’re helping with the cost of living.

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 we’ve already taken to deliver cost of living relief through Cheaper Medicines, including: 

• More free and cheaper medicines, sooner, with a 25 per cent reduction in the number of scripts a concessional patient must fill before the PBS Safety Net kicks in – (July 2022)
• 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, from $42.50 –  (January 2023)
• 60-day prescriptions saving time and money for millions of Australians with an ongoing health condition – (Three phases from September 2023)
• Freezing the cost of PBS medicines, with co-payments not rising with inflation for all Australians for the first time in 25 years – (January 2025)

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.

Quotes attributable to Prime Minister Anthony Albanese

“We said we would make cheaper medicines even cheaper - that is exactly what we are doing.

“This is another example of cost of living relief that helps every Australian.

“The size of your bank balance shouldn’t determine the quality of your healthcare. My Government will continue to deliver cost of living relief for all Australians.”

Quotes attributable to Minister Mark Butler

“The Albanese Government has been focused on delivering cheaper medicines for Australians.

“Cheaper medicines are good for the hip pocket and good for your health.

“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.”