Anthony Albanese makes big announcement on prescription medicine as fears grow Donald Trump could target Australia’s PBS
In a huge move designed to make the federal election all about Medicare, the Prime Minister unveiled the big change, promising it will come into force on January 1.
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Anthony Albanese will slash the cost of prescription medicine in Australia to the lowest level in twenty years if re-elected, pledging Aussies will not pay more than $25 for a Pharmaceutical Benefits Scheme (PBS) script.
In a huge move designed to make the federal election all about Medicare, the Prime Minister unveiled the big change overnight promising it will come into force on January 1, 2026, but only if he secures a second term.
It could save people with chronic health conditions up to $200 a year with the government providing everyday examples of a perimenopausal woman or a child with ADHD saving around $80 a year on a standard script.
The cost of medicine on the PBS is already frozen at $7.70 a script for concession cardholders. However, non-concession card holders pay $31.60.
Under the changes proposed that will be slashed to $25 a script saving some patients in a move designed to also put downward pressure on inflation.
Pensioners and concession cardholders will continue to benefit from the freeze on the cost of their PBS medicines, with the cost frozen at its current level of $7.70 until 2030.
“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 told news.com.au.
“With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: ‘we’ve got your back’.”
The Coalition confirmed it would match the policy also offering to lower the PBS co-payment to $25.
“Labor’s cost-of-living crisis is forcing Australians to make difficult decisions about their health – decisions that no Australian should have to make,’’ opposition health spokeswoman Anne Ruston said.
“More families are being forced to delay or avoid refilling their scripts or seeking health advice because they just cannot afford it under Labor.
“Only a Dutton Coalition Government will get the PBS back on track with strong economic management. We will lower the PBS co-payment to $25 and continue our longstanding policy of listing all approved and recommended medicines on the PBS – and in a timely manner.”
The pledge only applies to medication listed on the Pharmaceutical Benefits Scheme (PBS).
The big announcement represents a cut of more than 20 per cent in the maximum cost of PBS medicines, which will save Australians over $200 million each year.
The Albanese Government previously announced the largest cut to the cost of medicines in the history of the PBS in 2023, slashing the maximum cost from $42.50 to $30.
It follows reforms including 60-day prescriptions that slashed the price of scripts for thousands of Australians.
“The last time Australians paid no more than $25 for a PBS medicine was over 20 years ago. Cheaper medicines are good for the hip pocket and good for your health,’’ Health Minister Mark Butler said.
Target: Peter Dutton
However, Mr Butler made it clear the changes also had a political target: Peter Dutton’s record as Health Minister.
“When Peter Dutton was Health Minister, he tried to make medicines cost more, not less,’’ Mr Butler said.
“Peter Dutton tried to jack up the cost of medicines by up to $5 a script and put free medicines for sick pensioners even further out of reach.
“In opposition, Peter Dutton and the Liberals voted to block cheaper medicines six times.”
Mr Albanese said that four out of five PBS medicines will become cheaper because of a $689 million investment in next week’s Budget.
“Making medicines cheaper is a tangible way we’re helping with the cost of living, particularly for Australians who don’t qualify for a concession card,’’ he said.
Fears Trump could target PBS
As the Albanese Government moves to back the PBS there are fears American medical giants want to tear it down urging US President Donald Trump to impose punitive tariffs on the grounds it subsidies the cost of medicines for millions of patients.
The Sydney Morning Herald reported on Wednesday that the US industry has slammed the PBS as the “egregious and discriminatory”.
“Egregious and discriminatory pricing policies in several markets including Australia, Canada, the European Union, Japan and Korea undervalue American innovation, threaten billions of dollars in lost sales and undermine American competitiveness, jobs and exports,” says the formal submission from the Pharmaceutical Research and Manufacturers of America, known as PhRMA.
Speaking on 3AW, Deputy Prime Minister Richard Marles was asked what the impact would be if the United States imposed punitive tariffs on Australia because we subsidise medicines for millions of patients.
“Well, let me be really clear, the PBS is fundamental to our health system and that’s not going to change,’’ Mr Marles said.
“There’s not going to be any changes to the PBS. And the PBS has been a long standing feature of Australia’s health system across governments of both persuasions and was there when the original US‑Australia Free Trade Agreement was negotiated during the Howard government.
“The PBS enables Australians to access medicines which would otherwise be really costly at a rate which is affordable and is fundamental to the world class health system that we’ve got. “So, there’s not going to be any changes to the PBS. I mean, we’ll keep making our advocacy to the US more broadly in relation to the tariff issue and to our trading relationship with the United States, but the PBS is certainly not on the table.”
Opposition finance spokeswoman Jane Hume said the Coalition stands by the PBS unequivocally.
“This escalating trade war, increasing tariffs, are not good for the Australian economy,’’ she said.
“We want to make sure that we build a relationship with the US, maintain that relationship, that good relationship that we’ve had for many years past to ensure that the tariffs that have been imposed on steel and aluminium, not only are revoked, but no additional tariffs are imposed.
“A trade war is no good for Australia, it’s no good for Australians, it’s no good for your hip pocket. We want to de-escalate this as quickly as possible, use the good relationships that we have across the aisle and on Capitol Hill. That’s fundamentally important and something that unfortunately has failed to occur under this government.”
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