The Albanese Government has moved to ease household pressures by introducing new legislation that will make prescription medicines even more affordable.
From 1 January next year, the maximum cost of a prescription under the Pharmaceutical Benefits Scheme (PBS) will be capped at just $25 — the lowest price seen in over two decades.
“We said we would make cheaper medicines even cheaper — that is exactly what we are doing,” said Prime Minister Anthony Albanese, framing the change as a significant part of his government’s wider cost-of-living relief agenda.
“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.”
The planned $25 cap marks a more than 20 per cent cut to the current maximum price of $30, a reduction introduced in January 2023 as part of what was then the largest single drop in PBS history. That move alone has saved Australians hundreds of millions, and this latest step is expected to save over $200 million annually.
Minister for Health and Aged Care Mark Butler said the new price point brings general patient costs back to 2004 levels. “Cheaper medicines are good for the hip pocket and good for your health,” Butler 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.”
Since taking office, the Albanese Government has rolled out a string of PBS reforms designed to ease access and affordability. These include a 25 per cent reduction in the number of scripts required before concessional patients hit the PBS Safety Net, the introduction of 60-day prescriptions for chronic conditions, and a nationwide freeze on co-payments for all Australians until January 2025 — the first such freeze in 25 years.
The upcoming legislation also ensures pharmacies can continue to offer discounted prices on medicines beyond the $25 cap, with built-in safeguards to protect that practice.
Making medicines more affordable is, as the Prime Minister noted, “a tangible way we’re helping with the cost of living” — and one the government clearly intends to build upon.
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