Millions of Australians suffering from chronic conditions such as asthma, diabetes, severe pain, and menopause are set to benefit from a new policy by the Albanese government that will drastically reduce the price of essential medications to just $25 per prescription.
Health Minister Mark Butler confirmed that from January 1, 2026, the cost of the most commonly prescribed medicines under the Pharmaceutical Benefits Scheme (PBS) will drop by an additional $6.60—saving Australians over $200 million a year.
This move comes despite threats from the United States to impose 200% tariffs on pharmaceutical imports, a warning reportedly backed by major US drug manufacturers who are critical of Australia’s PBS subsidy model.
Butler was unequivocal: “The PBS is not up for negotiation. The Albanese Government is delivering on our promise to make medicines cheaper for Australians.”
Among the top 10 medicines to see their prices slashed are:
- Oxycodone – prescribed for severe pain (1.1 million prescriptions annually)
- Estradiol – used to treat menopause symptoms (1.07 million prescriptions)
- Symbicort and Adavair – asthma medications (1.7 million combined)
- Eliquis and Xarelto – stroke prevention
- Jardiance – for diabetes, heart failure, and kidney disease
- Mometasone and Methylprednisolone – eczema and dermatitis treatments
- Valaciclovir – antiviral treatment for herpes
New data reveals that Australians have already saved $1.5 billion since Labor’s last PBS reform two years ago, thanks to price cuts and the introduction of 60-day dispensing. This includes $488 million saved in New South Wales, $403 million in Victoria, and hundreds of millions more across other states.
Meanwhile, the US Department of Commerce continues to evaluate potential pharmaceutical tariffs, with speculation that former President Donald Trump may be pushing for punitive trade measures unless more medicine production shifts to US soil.
Despite this, Prime Minister Anthony Albanese has made it clear: “The PBS will not be part of any trade negotiations.”
Opposition leader Sussan Ley indicated that the Coalition is likely to support the bill, showing bipartisan backing for cheaper medications.
Pharmacy Guild president Trent Twomey emphasized the significance of this move: “Without these cuts, subsidised medicine prices would’ve reached $50 by January. Australians rely on these drugs daily—not as a luxury, but a necessity.”
Asthma Australia CEO Kate Miranda added that more affordable medicines will lead to better adherence to treatment and fewer hospitalizations, ultimately saving lives and resources.
