The Albanese Government says it will introduce legislation this week to cap the cost of Pharmaceutical Benefits Scheme prescriptions to $25, down from $31.60, from next year. Source: SBC News.
The move was announced by Labor during the May election campaign and will save Australians $200 million per year through the new cap on the scheme, which subsidises the costs of vital prescription medicines for thousands of Australians.
It means the cost of medicines on the PBS could be reduced by over 20 per cent from January 1.
Pensioners and concession cardholders will continue to pay just $7.70 for their prescriptions until at least 2030.
Prime Minister Anthony Albanese said it builds on a pledge for cost of living relief.
“The size of your bank balance shouldn’t determine the quality of your healthcare,” he said.
Health Minister Mark Butler said general patients’ medicines haven’t been this cheap since 2004.
The announcement follows a warning by US President Donald Trump earlier this month that countries can expect 50 per cent tariffs and 200 per cent tariffs on pharmaceuticals.
In 2024, Australia exported about $2.1 billion of medicinal and pharmaceutical products to the United States, Australian Bureau of Statistics data shows.
If the US were to put tariffs on medicinal exports, this could make Australian drugs more expensive.
Driving down demand could also force manufacturers to move overseas, where the costs of operations are cheaper.
Making medicines more affordable was a cornerstone of Labor’s re-election campaign.
The party promised an $8.5 billion boost aimed at strengthening the system and incentivising more clinics to bulk bill.
This included $3.5 billion in direct incentives to GPs and medical centres, and $400 million for training more nurses and doctors in primary care settings, outlined in the March federal budget.
FULL STORY
Albanese Government moves ahead with election pledge to cap prescription medicines to $25 (By Cameron Carr, SBS News)
