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A $25 cap will be placed on scripts under the Pharmaceutical Benefits Scheme (PBS) if Labor wins the next federal election, says Prime Minister Anthony Albanese.
The pre-Budget promise comes amid reports US pharmaceutical companies may be targeting the scheme.
“Cheaper medicines is another way we are helping with the cost of living, while putting downward pressure on inflation,” he says.
“With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians: we’ve got your back.”
American medical giants have reported labelled the PBS as “discriminatory” and have pressed US President Donald Trump to target Australia when he imposes sweeping “reciprocal tariffs” on trading partners next month.
Trump says he will impose fresh tariffs on April 2 on countries he believes uses “unfair” trade practices which could apply extremely broadly.
Albanese told the 2025 Australian Pharmacy professional convention on the Gold Coast today (Thursday) that the PBS was safe.
“It’s not surprising that there is a push and some opposition to the PBS but let me be very clear and explicit: the Pharmaceutical Benefits Scheme is not for sale,” he told the conference.
“We are always awake to the threats to the PBS that are here, domestically but also from overseas,” Albanese said.
“I want to represent the people who are your customers – Australians; not represent big pharma,” he told the conference.
The stance on the PBS has been supported by the Coalition; shadow Home Affairs Minister James Paterson told TV media that the PBS was not open to negotiation.
Four out of five PBS medicines will become cheaper because of this $689 million investment in next week’s Budget, the federal government says.
The cost of PBS medicines to pensioners and concession cardholders will remain frozen at $7.70 until 2030.
Health Minister Mark Butler says the last time Australians paid no more than $25 for a PBS script was over 20 years ago.
“Cheaper medicines are good for the hip pocket and good for your health,” he says.
If re-elected, the government’s $25 PBS script cap will start from January 1, 2026.
