Australians will pay no more than $25 for a PBS script under Labor

A massive health pledge from Labor will mean Australians pay the same for PBS medicines, saving households $200 million a year in health costs.

Labor will slash the price of scripts so Australians pay no more than $25 for any medicine listed on the Pharmaceutical Benefits Scheme saving households $200 million a year in health costs.

The Albanese Government’s federal budget next week will include a 20 per cent cut to the maximum cost of PBS medicines, which will take effect from January 1 next year and bring prices down to where they were two decades ago.

Anthony Albanese will make the major health announcement on cheaper medicines ahead of the budget. Picture: Nikki Short

Patients who need medication for ongoing chronic conditions will save up to $85.80 a year on a standard script and $235.80 if they have a 60-day prescription.

With Anthony Albanese only weeks away from calling the federal election, which must be held by May 17, Labor is framing health as a major issue for the upcoming poll with a suite of policies designed to expand access to medicines and care, while addressing cost of living pressures.

Already this term Labor cut the maximum cost of a PBS script from $42.50 to $30, which had since increased to $31.60 due to indexation.

The cut to $25 is expected to cost the budget $689m over the next four years, with average Australian households the main beneficiary of the cost reduction.

Pensioners and concession card holders currently pay only $7.70 per PBS script, a rate Labor has frozen until 2030.

Health Minister Mark Butler says Australians will save more than $85 a year per script under the changes. Picture: NewsWire / Damian Shaw

The Coalition said on Wednesday night it too would lower PBS co-payments to $25.

It has previously rushed to match Labor’s $8.5 billion commitment to triple the Medicare rebate for GPs designed to result in nine in ten visits being bulk billed within five years.

The opposition has also moved in lock-step with Labor on a series of funding announcements around women’s health issues, and has confirmed it will not roll back existing Medicare urgent care clinics funded by the Albanese Government this term.

Labor has also announced a further 50 clinics will be funded, but the Coalition is yet to announce if it will match the pledge.

The Prime Minister said Labor would continue to deliver cost of living relief to all Australians.

“Cheaper medicines is another way we are helping with the cost of living, while putting downward pressure on inflation – our number one focus,” Mr Albanese said.

“With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: we’ve got your back.”

Health Minister Mark Butler said medicines had not been $20 since 2004, calling the huge reduction “good for the hip pocket and good for your health”.

“In opposition, Peter Dutton and the Liberals voted to block cheaper medicines six times,” he said.

“The contrast this election is clear: cheaper medicines with a re-elected Albanese Government, or the frankly terrifying legacy of Peter Dutton, who wants medicines to cost more, not less.”

Originally published as Australians will pay no more than $25 for a PBS script under Labor