Strengthening Medicare: medicines to get cheaper

The Albanese Labour Government is proposing medicines cheaper – with a script to cost Australians no more than $25 under the Pharmaceutical Benefits Scheme (PBS).

Having already slashed the cost of medicines – with the largest cut to the cost of medicines in the history of the PBS in 2023 – labour government now going even further.

This is a more than 20 per cent cut in the maximum cost of PBS medicines, which is expected to save Australians over $200 million each year.

“Labour is committed to delivering cost of living relief for Australians, while strengthening Medicare. With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: we’ve got your back,” Prime Minister Anthony Albanese announced. “Making medicines cheaper is a tangible way we’re helping with the cost of living,” he further added.

Four out of five PBS medicines will become cheaper because of this $689 million investment in next week’s Budget.

The last time that PBS medicines cost no more than $25 was 2004.

Pensioners and concession cardholders will continue to benefit from the freeze to the cost of their PBS medicines, with the cost frozen at its current level of $7.70 until 2030.

This builds on action we’ve already taken to deliver cost of living relief through Cheaper Medicines, including:

More free and cheaper medicines, sooner, with a 25 per cent reduction in the number of scripts a patient must fill before the PBS Safety Net kicks in – $480 million (July 2022)

The largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a script falling to $30, from $42.50 – $624 million (January 2023)

60-day prescriptions saving time and money for millions of Australians with an ongoing health condition – $165 million (Three phases from September 2023)

Freezing the cost of PBS medicines, with co-payments not rising with inflation for all Australians for the first time in 25 years – $9 million (January 2025)

If re-elected the Albanese Government will pass legislation and $25 maximum PBS scripts will start from January 1 2026.

March 20, 2025