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Historic PBS price cut delivers affordable medicines for Australians

Lead image for Historic PBS price cut delivers affordable medicines for Australians

For a person in Australia taking just two PBS medinces every month, the annual savings will be significant

From today, the cost of medicines for people in Australia without a concession card is reducing to AUD25.

This is the lowest amount since 2004 and only the second time in history that the price of medicine in Australia has been reduced.

The PGA's National President Professor Trent Twomey said the change delivered big cost savings and would result in improved access to essential medicines.

Patients often decide to reduce doses or skip their medicine.

PGA's Prof Trent Twomey

“Every week, more than 400,000 prescriptions will now cost no more than AUD25—putting up to AUD6.60 back in patients’ pockets for every prescription," Prof Twomey said.

"It makes medicine the most affordable it’s ever been."

The PGA was joined by more than 20 health and community stakeholder groups in Australia in calling for PBS medicines to be more affordable.

Behind the numbers

Research showed more than one in five people without a concession card in Australia had skipped a prescription in the past three years because of cost.

These numbers rose to one in three in the nation's regional areas.

“Every day, community pharmacists see the tough choices Australians face — choosing between medicine, food, rent and other essentials," Prof Twomey said.

"Patients often decide to reduce doses or skip their medicine.

"Today’s historic reform will encourage medicine adherence, prevent complications and reduce pressure on GPs and emergency departments," he said.

“Without these price reductions, the cost of a prescription would have been AUD50.”

Most accessible

Community pharmacists are Australia’s most accessible primary healthcare professionals with more than 6,000 community pharmacies open earlier, later and longer than other primary healthcare destinations.

Every day, community pharmacists see the tough choices Australians face — choosing between medicine, food, rent and other essentials.

Prof Trent Twomey

The decision to reduce the price of PBS prescriptions for non-concession card holders was announced by Australia's Prime Minister Albanese at APP 2025 on 20 March 2025.

The National Health Amendment (Cheaper Medicines) Bill was introduced into Parliament on 30 July 2025 and received Royal Assent on  September 4 2025.

The reform will make essential medicines more affordable for millions of Australians and strengthen primary care access nationwide.

Background

PGA was joined in the call for cheaper medicines by representatives including Australian Patients Association, Asthma Australia, Sexual and Reproductive Health Australia, QENDO, Australian Association for Adolescent Health, Wounds Australia, Parents & Citizens Queensland, Foodbank, the Pharmaceutical Society of Australia and Advanced Pharmacy Australia.