The cut will be effective from January 1, 2026 — delivering welcome cost-of-living relief to millions of Australians.
No one should have to skip medication because they can’t afford it.
The Hon Mark Butler, Minister for Health and Ageing
The Pharmacy Guild of Australia’s National President Professor Trent Twomey has welcomed the move and said it was a sign the Government is prioritising medicine affordability.
“This is great news for 20 million Australians without a concession card, who will collectively save AUD689 million over the next four years,” Professor Twomey said.
Australia’s Minister for Health and Ageing Mark Butler said the cuts will make a huge difference.
“It follows four waves of cheaper medicines policies … that have already saved people about AUD1.5 billion at the pharmacy counter in co-payments,” he said in a television interview following the late-night vote.
The legislation follows calls from more than 20 health and community organisations —including Asthma Australia, QENDO, Family Planning Alliance Australia and Patients Australia — for stronger action to make essential medicines more affordable.
“Community pharmacies are at the coal face of the tough choices patients are forced to make between medicines and everyday essentials like rent or groceries,” Professor Twomey said.
“No one should have to skip medication because they can’t afford it.”
