The federal government has committed to reducing medicine prices if it secures re-election, with the Pharmaceutical Benefits Scheme (PBS) under scrutiny from US lobby groups. The Albanese government asserts that this initiative will save Australians $200 million annually by lowering the maximum PBS price for medicines from $31.60 to $25, a reduction set to be detailed in next week’s federal budget and to take effect from January 1 next year, contingent on re-election.
Additionally, the Coalition has indicated it would adopt a similar reduction strategy. Under these changes, individuals could potentially save up to $235 per year on their medication costs.
However, the timing of this announcement raises concerns as Australia’s PBS may face challenges amid discussions of new US tariffs. Pharmaceutical companies in the US have voiced their opposition to government subsidies, branding the PBS as one of several “discriminatory pricing policies” in a submission made to the White House. Both the government and the opposition have pledged to protect the PBS during tariff negotiations with the Trump administration.