Govt. to lower the cost of most medicines

The federal government has promised to slash the cost of most medicines on Australia’s Pharmaceutical Benefits Scheme (PBS), while both major parties are standing firm against pressure from US pharmaceutical giants.

Under the Albanese government’s new plan, the maximum price for most PBS-listed medicines will drop from $31.60 to $25—a move expected to save Australians a total of $200 million a year. The $689 million investment, announced today, means four out of five medicines will become cheaper.

The timing of this announcement isn’t random—US drug companies have been targeting Australia’s PBS, calling it one of several “egregious and discriminatory pricing policies” in a submission to the White House. With Donald Trump pushing new tariffs, there are concerns that Australia’s medicine prices could be caught in the crossfire.

But both Prime Minister Anthony Albanese and Opposition Leader Peter Dutton are making it clear—Australia’s PBS is off-limits.

"Under my government, it will never be the subject of negotiation," Albanese said, adding that big pharma’s profit motives won’t dictate Australian health policy.

Dutton echoed the sentiment, saying, “We will fight against any big drug company imposing tariffs.”

The price drop is set to be included in next week’s federal budget, and if Labor is re-elected, it will take effect from January 1 next year. The Coalition has already pledged to match the policy, meaning no matter who wins, Australians will see cheaper medicines.

For individuals, this could mean savings of up to $235 a year—a welcome relief for many households.

Despite the bipartisan commitment, there’s still some uncertainty over how Trump’s potential tariff war could impact Australia. But for now, both sides of politics are drawing a firm line in the sand: the PBS is not for sale.