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.
Support for a further reduction
Ahead of the late-night vote on Monday September 1, there was discussion in the Senate and the House of Representatives about lowering the cost of co-payment prescriptions even further – to AUD19.00.
The Pharmacy Guild of Australia has for some time supported the PBS co-payment be reduced to AUD19.00, arguing it would make some 70 percent of medicines more affordable for Australians.
Queensland Senator Pauline Hanson said in Parliament she was fully aware of how important the PBS is to the Australian people - and reminded the Senate “… it was One Nation, prior to the 2019 election, that advocated to drop the prescription cost from over $40 to $19”.
Western Australia Senator Fatima Payman later called for an amendment for the proposed cut to AUD25.00 be reduced a further AUD5.00 to AUD20.00.
“This would massively help … with affordability and the cost-of-living crisis,” she said.
Senator Payman’s amendment was supported by 15 senators but was voted against by 27.
Senator Payman moved for an amendment for the cut to be reduced a further AUD5.00, with parliamentary records showing 15 senators supported the move
Making essential medicines more affordable
Regardless of the debate, 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.”
