Australians can soon look forward to reduced medicine costs, as the federal government is set to introduce significant legislation aimed at lowering prices this week. Prime Minister Anthony Albanese is poised to deliver on a critical election promise with a bill that will cap the price of medications listed under the Pharmaceutical Benefits Scheme (PBS) at a maximum of $25.
With bipartisan backing from the Coalition, the proposed bill is anticipated to pass through Parliament smoothly. In a recent update on social media platform X, Albanese confirmed, “Every medicine on the PBS, no more than $25. We’re working to make it law this week.”
This legislative move comes as the current maximum price for PBS medications stands at $31.60, following a previous reduction from $42.50 implemented by the Albanese government. Albanese noted on ABC’s Insiders that the last time medicine prices reached the $25 threshold was back in 2004.
In addition, pensioners and holders of concession cards will benefit from a price freeze on their medication costs, maintaining them at $7.70 until 2030. The government projects that this legislation will save Australians a total of $200 million.
Albanese underscored the importance of this initiative in alleviating living costs and exerting downward pressure on inflation, stating that it remains the government’s primary objective. The introduction of this bill is seen as one of the many ways the Albanese administration is working to support Australians economically.