PBS Medicines Cost Cut: Australians to Pay No More Than $25

Albanese Government Slashes Medicine Costs to $25

The Albanese Government is making prescription medicines more affordable, with legislation introduced to Parliament this week that will cap the cost of Pharmaceutical Benefits Scheme (PBS) prescriptions at $25 starting January 1, 2025.

This marks the first time PBS medicines have cost no more than $25 in over two decades, with the last instance being in 2004.

This initiative is a notable cost-of-living measure by the Albanese Government, building on the substantial cuts made in 2023, which represented the largest reduction in PBS medicine costs in the scheme’s history.

The new cap represents a more than 20 percent decrease in the maximum cost of PBS medicines, projected to save Australians over $200 million annually.

Making medicines cheaper is a tangible way the government is addressing the cost of living.

pensioners and concession cardholders will continue to benefit from a freeze on their PBS medicine costs, with the co-payment remaining at $7.70 until 2030.

This action complements previous cost-of-living relief measures, including:

• A 25 percent reduction in the number of scripts concessional patients need to fill before the PBS Safety Net applies, implemented in July 2022.
• The largest cut to medicine costs in PBS history, reducing the maximum cost of a general script from $42.50 to $30 in January 2023.
• The introduction of 60-day prescriptions,saving time and money for millions of Australians with ongoing health conditions,rolled out in three phases from September 2023.
• A freeze on PBS medicine costs, preventing co-payments from rising with inflation for all Australians for the first time in 25 years, effective January 2025.

All medicines currently eligible for pharmacy discounting will continue to be discountable once the co-payment is reduced to $25. The legislation includes specific provisions to ensure the availability of discounting.

Quotes Attributable to Prime Minister Anthony Albanese

“We saeid we would make cheaper medicines even cheaper – that is exactly what we are doing,” Prime Minister Albanese stated. “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,” said Minister Butler. “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 pensioners and concession cardholders…”