A re-elected Labor government plans to reduce the cost of PBS-listed medications to a maximum of $25 per script as part of new election promises detailed in next week’s budget. This move aims to alleviate the cost of living by making medicines more affordable. Labor leader Anthony Albanese will address the issue in a major speech, emphasizing the focus on cheaper medicine costs, a policy expected to cost the government $689 million.
The announcement came just as the formal election campaign is set to begin, with Labor highlighting healthcare as a central issue. The Coalition swiftly matched Labor’s pledge, promising the same price reduction for essential medicines, similar to their previous matching of Labor’s $8.5 billion bulk billing incentive.
Labor’s initiative will be reflected in next week’s budget, with PBS-listed drugs seeing a 20% price reduction following an earlier round of price cuts in 2023. Pensioners and concession cardholders will continue to receive medicine for no more than $7.70 until 2030, while the maximum price of a PBS script for others will be reduced by $5 from the current $30. These changes are projected to save Australian patients a combined $786 million over the next four years.
The opposition has pledged to support the reduction in medicine costs, citing its commitment to affordable access to essential medicines and the Pharmaceutical Benefits Scheme (PBS). This pledge is part of the Coalition’s broader campaign to address what they describe as Labor’s healthcare crisis and the bulk-billing crisis, although Labor disputes claims about bulk-billing rates under the previous government’s tenure.
The announcement builds on Labor’s previous health policy commitments, including the introduction of 60-day scripts, which, when combined with the new $25 copayment, could see patients saving up to $236 annually. Labor’s approach emphasizes its dedication to improving healthcare access and affordability, setting a contrast to the opposition’s stance under former health minister Peter Dutton, who proposed increasing the co-payment for GP visits.
Source: https://www.theguardian.com/australia-news/2025/mar/19/pbs-listed-medicine-to-cost-no-more-than-25-a-script-if-labor-re-elected
