Anthony Albanese says he still has his eye on cost-of-living pressures as a promised reduction in medicine costs nears fruition.
As parliament resumed on Monday, the prime minister touted his government’s promise to bring down the maximum amount Australians will pay on medicines on the Pharmaceutical Benefits Scheme from $31.60 to $25.
The change to the PBS co-payment cap, which sets the maximum out-of-pocket costs pharmacists can charge customers for approved scripts, is set to be introduced to the House of Representatives on Wednesday.
With the opposition signalling their support for the bill, it’s likely to be waved through parliament in the coming weeks, with the changes due to take effect on pharmacy shelves from January 1, 2026.
“Now, there’s an old saying. Nothing comes down in price,” Mr Albanese said in question time.
“Well, this is coming down in price. Not just that, but we’ve frozen the cost of scripts for pensioners and concession card holders to just $7.70; not just for this term, but for the end of the decade.
“Real cost-of-living relief, taking pressure off Australians and backing in Medicare for the future.”
Although the government has declared fixing stalled productivity growth as the priority of its second term, Mr Albanese and Treasurer Jim Chalmers reiterated their commitment to ease cost-of-living pressures, with many Australians still feeling the after-effects of high inflation.
“Cost-of-living relief is at the core of everything we do,” Dr Chalmers said.
“It’s the same when it comes to legislation to protect penalty rates, slash student debt, the medicines policy we’re introducing this week as well, the minimum wage, paid parental leave, the super guarantee, cheaper batteries, prac payments.
“All of this is about recognising that even though we’ve made that progress in the economy, there’s more to do to help ease the cost of living.”
First promised by the Albanese government ahead of the May election, the cheaper medicines bill has been forecast to cost the budget $690 million over four years.
It marks the second cut to the cap introduced by the Albanese government in three years, after it slashed the maximum price of PBS prescriptions from $42.50 to $30 in 2023.
Without the government’s interventions, some 20 million Australians would have been paying up to $50 for essential medicines like insulin, blood thinners and osteoporosis injections, said Trent Twomey, national president of the Pharmacy Guild of Australia.
“Indeed, it is a good day for patients,” he told reporters.
The government’s move to strengthen the PBS comes amid concerns the scheme will be targeted as a bargaining chip in US trade negotiations to ward off threatened pharmaceutical tariffs.
The US pharmaceutical lobby has been pushing President Donald Trump to place tariffs on Australian pharmaceutical imports in retaliation to the “egregious and discriminatory” PBS.
Health Minister Mark Butler said the government’s position on the PBS was “unshakeable”.
“We won’t be negotiating the elements of our PBS with any other country. It’s one of the great cornerstones of Australia’s healthcare system,” he said.
Australia eased its biosecurity restrictions on US beef imports last week, but the prime minister has denied the move was linked to trade talks, noting it followed a 10-year review of Australian biosecurity rules.
Parliamentarians also formally paid their respects to Pope Francis, with Mr Albanese and Opposition Leader Sussan Ley delivering condolence motions to the late pontiff, who died in April.
“I am not a Catholic, but I found inspiration in the way Pope Francis lived out his faith with humility, strength and compassion,” Ms Ley said.
“His example was a powerful reminder that service to others is at the heart of everything we do, especially in public life.”
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