The Albanese Government is delivering on its promise to ease the cost of living by making medicines even more affordable. Legislation being introduced to Parliament this week will reduce the maximum cost of a prescription on the Pharmaceutical Benefits Scheme (PBS) to just $25, starting 1 January 2026.
This will be the lowest general patient price for PBS medicines in over 20 years – the last time they cost $25 or less was in 2004.
It’s the latest in a series of major health affordability reforms by the Albanese Government, following the biggest cut to PBS medicine prices in history last year. The new $25 cap represents a further 20% reduction, expected to save Australians more than $200 million each year.
Supporting Australians with the Cost of Living
Lowering the cost of medicines is one of the most direct and practical ways the Government is easing cost of living pressures. And it’s not just general patients who benefit – pensioners and concession card holders will continue to enjoy a freeze on the cost of their PBS medicines, capped at $7.70 until 2030.
Key cost of living measures already delivered include:
- July 2022: 25% reduction in the number of concessional scripts required to reach the PBS Safety Net.
- January 2023: Largest PBS price cut in history – general script price reduced from $42.50 to $30.
- September 2023 onwards: Introduction of 60-day prescriptions, saving time and money for Australians with chronic conditions.
- January 2025: Co-payments frozen for all Australians – the first time in 25 years they won’t increase with inflation.
Importantly, existing pharmacy discounts will still apply. The legislation includes safeguards to ensure pharmacies can continue to offer discounted medicines below the $25 cap.
Prime Minister Anthony Albanese said:
“We said we’d make cheaper medicines even cheaper – and that’s exactly what we’re doing.
This is real cost of living relief for every Australian.
No one’s access to healthcare should depend on their bank balance.”
Health Minister Mark Butler said:
“Our focus has been on making medicines more affordable – and that’s delivering results.
Cheaper medicines are good for your health and your wallet.
General patient prices haven’t been this low since 2004.
And for concession card holders, we’ve locked in low prices for years to come.”
