The Federal government is pushing ahead with legislation to make a ‘cheaper medicines’ promise it made going into the federal election earlier this year a reality.
The plan is to lower the maximum price of PBS medications to ease cost of living pressures.
The numbers
At present, the maximum amount a patient will pay for a PBS listed medicine is $30, reduced from $42.50 back in January 2023.
The new legislation, introduced to Parliament in July, will see prescription medicines capped at $25.
The patients
The capped prices are not specific to any one group of consumers; all Australians will be able to get their PBS prescriptions filled under the new pricing arrangement.
Pensioners and concession cardholders will continue to access reduced-cost medications for $7.70.
A commitment has been made for the cap on medication prices for those eligible for the concession to stay as it is until 2030.
The need
With cost-of-living pressures being felt in recent years, a campaign by the Pharmacy Guild of Australia had called for a decrease to the maximum price of prescription medicines.
A survey it carried out in the lead up to the 2025 election found 21% of Australians had reported going without prescription medicines due to cost.
According to the Australian Bureau of Statistics, in the 2023/2024 financial year 8% of Australians delayed or went without getting prescription medication when needed due to not being able to afford them.
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Those living in areas of most socio-economic disadvantage and those living with chronic health conditions were among those most likely to put off filling their prescriptions.
RACGP President Dr Michael Wright said affordable medicines and the PBS were essential components of health access.
“Healthcare is a fundamental right, and a key part of that is knowing that when we prescribe an essential medicine, our patients will be able to access it without cost being a burden,” he said.
“Our patients will welcome this change. Following the inflation we’ve all experienced, it’s rare for the cost of something essential to decrease.”
The timeline
Legislation first needs to be passed in Federal Parliament and that will set out a start date for the new capped medicine cost of January 1, 2026.
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