Huge savings on prescription medicines on the way for millions – what you need to know

By HARRISON CHRISTIAN FOR DAILY MAIL AUSTRALIA

Published: 20:00 GMT, 19 March 2025 | Updated: 20:39 GMT, 19 March 2025

Anthony Albanese has promised to slash the maximum cost of prescription medicine under the Pharmaceutical Benefits Scheme (PBS) to $25 if re-elected.

The cost of medicine on the PBS is currently up to $31.60 for non-concession card holders, but Mr Albanese has vowed to introduce the cut by January 2026 if he secures another term.

The change, made possible by a $689million investment in next week’s Budget, could save Aussies with chronic health conditions hundreds of dollars a year.  

The move comes after Labor previously cut the maximum cost for medicines on the PBS to $30 in 2023. 

A full list of the medicines under the PBS is available on the Department of Health and Aged Care website.  

Pensioners and concession cardholders currently pay a maximum of $7.70 for medicines on the PBS.

If brought into effect, the change would make prescriptions in Australia the cheapest they have been in decades.

‘The last time Australians paid no more than $25 for a PBS medicine was over 20 years ago,’ Health Minister Mark Butler said.

Anthony Albanese has promised to slash the maximum cost of prescription medicine under the Pharmaceutical Benefits Scheme (PBS) to $25 if re-elected

‘Cheaper medicines are good for the hip pocket and good for your health.’  

The announcement has again signalled that Labor wants to fight the election on healthcare grounds, after it pledged last month to make GP visits free for most Aussies if re-elected. 

The government attacked Peter Dutton’s record as Health Minister on Wednesday night, as it had during the GP visits announcement. 

‘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.’

The Coalition said it would match the policy, also cutting the maximum 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,’ said Opposition health spokeswoman Anne Ruston.

Health Minister Mark Butler said the last time Australians paid no more than $25 for a PBS medicine was over 20 years ago

‘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 announcement comes as big pharmaceuticals in the US call on Donald Trump to impose further tariffs on Australia because it subsidises medicines. 

The drug companies lodged a formal complaint with Trump’s trade chief earlier this month, calling for an end to the ‘damaging pricing policies’ in Australia, as the president gears up for another round of tariffs on other countries in April. 

It’s possible the US will try to use punitive tariffs to force Australia to abandon its medicine subsidies for the benefit of big pharma.  

But both Labor and the Coalition have vowed to keep the PBS off the table in any trade talks with the Trump administration. 

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Huge savings on prescription medicines on the way for millions – what you need to know

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