Aussies set to save with Labor’s proposal to slash prescription medicine costs

Should Labor win the next election, the maximum price Aussies will pay for PBS-listed medicines will be reduced to $25, as part of the Federal Government’s plan to lower prices.

From January 1, 2026, patients will pay a reduced maximum amount for prescription medicines listed on the government’s subsidy scheme, dropping from $30 to $25.

The Coalition quickly matched Labor’s proposal, with both sides agreeing on the importance of affordable medicines.

Four out of five Pharmaceutical Benefits Scheme medicines would become cheaper, under the plan, saving Australians $200 million every year and reducing the program’s patient cost cap to its lowest level in two decades.

“Cheaper medicines are good for the hip pocket and good for your health,” Health Minister Mark Butler said.

Prime Minister Anthony Albanese reinforced this point, stating that alongside stronger Medicare and more free GP visits, cheaper medicines were part of Labor’s broader commitment to supporting Australians.

“What this is about is putting cost of living relief for people who need it, but also it will put downward pressure on inflation,” he told ABC Radio Melbourne.

The Pharmacy Guild of Australia welcomed Labor’s commitment, noting that if re-elected, the policy would result in prescription costs falling to the lowest level in 20 years.

“If this action had not been taken, Australians would be paying up to $50 per script in 2026,” national president Trent Twomey said.

Opposition Leader Peter Dutton expressed support for affordable medicines, noting that the Coalition had gone to the last election with a similar policy.

“We support affordable medicines,” he told 2GB radio on Thursday.

“It’s good for prevention, it’s good for people to have well-managed medication programs, and you get better health outcomes in the system.”

The commitment to lower the cost of PBS medicines follows the recent announcements from both Labor and the Coalition to invest billions of dollars in Medicare. 

Prime Minister Anthony Albanese recently outlined Labor’s plan to invest $8.5 billion in expanding bulk billing and training programs for GPs and nurses, emphasising the importance of ensuring that healthcare remains accessible to all Australians, particularly those in need.

Albanese said his government wants nine out of 10 visits to the GP to be free by the end of the decade.

“That’s an ambitious goal but people deserve ambition from their government on Medicare,” he said.

“Because just as every Australian wants the best possible health care for their family, our government wants the best possible health care for every Australian.

“If the Australian people entrust our Labor government with a second term, a single, straightforward objective will be the foundation of our health policy.”

In response to Labor’s pledge,  Dutton and health spokeswoman Anne Ruston announced the Coalition’s own “historic” $9 billion plan.