Key Points
- Labor says it would commit to passing legislation to make the maximum cost of prescription PBS medicines $25.
- If re-elected the Albanese government says it would reduce the cost of medicines as of January 2026.
- Such a change would bring down the cost of medicine for working Australians not eligible for healthcare subsidies.
The cost of most prescription medicine in Australia would be no more than $25 if Labor is re-elected at the upcoming federal election.
Prime Minister Anthony Albanese is expected to make the announcement in a speech on Thursday as part of his party’s Cheaper Medicines policy.
The Albanese government will commit to passing legislation to make the maximum cost of prescription medicine covered by the pharmaceutical benefits scheme (PBS) $25 if it wins another term in power.
The new capped price would be expected to come into effect as of January, 2026.
The cost of medicines is just one part of the Australian household budget that has increased due to inflation in the economy. Source: Getty / Bloomberg
The current maximum cost of filling a script for a PBS medicine is $30, while it used to be $42.50, it was reduced in January 2023.
Labor’s proposal would bring down the cost of medicine for working Australians not already eligible for healthcare subsidies on the cost of their scripts.
While the , is yet to be called, cost of living is tipped to be a major issue throughout the campaign.
In a statement provided to media about the announcement Albanese said, “Cheaper medicines is another way we are helping with the cost of living, while putting downward pressure on inflation — our number one focus.”
Labor highlighted its plan would result in a “more than 20 per cent cut” in the maximum cost of PBS medicines, which it expected would save Australians more than $200 million each year.
More than 80 per cent of prescription medicines are part of the PBS, which sees the government cover part of the cost of common prescription medicines.
According to the Pharmacy Guild of Australia, which had been calling for the government to lower the co-payment patients have to pay for such medicines, 21 per cent of Australians had struggled to afford their prescribed medication in the past three years.
Guild national councillor Mario Barone had said Australians were “being forced to make tough choices between filling prescriptions and paying the rent, buying groceries and putting petrol in the car.”
The Coalition is yet to comment on Labor’s plan for PBS pricing however it had previously expressed concern about the number of medicines being deferred from consideration for listing on the PBS.
Opposition health spokesperson Anne Ruston said in November that a new maximum submission capacity effectively pursued “a cap on medicines for the first time in history”.
The Coalition had also criticised Labor for the time it took on the PBS.
