The Albanese Labor government has consistently delivered on its commitment to lower the cost of essential medicines for Australians. Since taking office, the government has implemented several significant reforms:

In January 2023, Labor made the largest cut to PBS medicine costs in the scheme's 75-year history, reducing the maximum price from $42.50 to $30 per script. This was followed by the introduction of 60-day prescriptions in September 2023, enabling patients with stable conditions to receive double quantities of medication for the same price.

These reforms have delivered substantial savings, with Australians saving $250 million on medicines in 2023 alone, including $7.2 million from nearly 2 million 60-day scripts dispensed in just four months.

The government has also frozen prescription costs for general patients at $31.60 for 12 months, while pensioner and concession card holders' costs remain frozen at $7.70 until 2029.

• Over $1.1 billion in total cheaper medicines savings delivered to Australians

• 25% reduction in PBS Safety Net thresholds since July 2022

• 66 million prescriptions issued free to patients after reaching the lower Safety Net threshold

  
  

Update - 2025 Budget Commitment: PBS Scripts Capped at $25

In the 2025 Budget, Labor has made a major election pledge to reduce the maximum price of PBS-listed medicines to no more than $25 per script if re-elected. This represents a further 20% reduction in medicine costs.

The $689 million commitment will make four out of five medications on the PBS cheaper, benefiting Australians across the country. Minister Butler noted that "the last time Australians paid no more than $25 for a PBS medicine was over 20 years ago."

The plan will save Australians an additional $200 million annually, with significant examples including:

• Estrogel (menopause): $80 annual savings

• Ritalin LA (ADHD): $86 annual savings

• Jardiance (diabetes): up to $86 annual savings

  
  

[1] https://alp.org.au/petitions/cheaper-medicines-updates/

[2] https://www.pm.gov.au/media/australians-save-250-million-thanks-albanese-government-cheaper-medicines

[3] https://www.guild.org.au/news-events/news/forefront/v12n10/cheaper-medicines-legislation-passed

[4] https://www.theguardian.com/australia-news/2023/aug/09/coalition-liberal-party-labor-prescription-medicine-60-day-dispensing-pharmacies

[5] https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2324a/24bd080

[6] https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/cheaper-medicines-stay-cheaper-as-australians-save-11-billion

[7] https://www.theguardian.com/australia-news/2025/mar/19/pbs-listed-medicine-to-cost-no-more-than-25-a-script-if-labor-re-elected