Prime Minister Anthony Albanese has pledged to reduce the maximum cost of Pharmaceutical Benefits Scheme (PBS) medicines to $25 per script if re-elected, effective from January 1, 2026.
The policy aims to save Australians over $200 million annually and will cost the budget $690 million over four years.
The Coalition has agreed to match this announcement, following its support for Labor’s recent Medicare funding boost.
Stay up to date on the latest news with The National Briefing – keeping you in the loop with news as it hits:
Meanwhile, American pharmaceutical companies have criticised Australia’s PBS, labeling it “egregious and discriminatory.” They are urging US President Donald Trump to impose reciprocal tariffs on Australian pharmaceuticals in response.
Health Minister Mark Butler has reaffirmed Australia’s commitment to the PBS, stating the government will not negotiate changes despite external pressures. He emphasised the importance of maintaining affordable medicines for Australians.
The PBS subsidises medication costs, allowing Australians to access necessary medicines at reduced prices. The government negotiates directly with suppliers, often opting for generic brands over more expensive originals.
This practice has long been a point of contention for the American pharmaceutical industry.