Labor cuts PBS co-payment, Coalition scrambles to match in pre-election health showdown

In a move that impacts more than 400,000 Australians every week, the Albanese Labor Government has pledged to slash the PBS co-payment to $25 from January 2026. The Coalition has quickly jumped on board, mirroring this pre-election promise, as they have with other health commitments announced by the government. The strategy is familiar, but will it be enough?

The decision to lower the PBS co-payment comes after a coalition of more than 20 health and community groups rallied together to demand affordable medicines. Their call is hard to ignore, especially as ABS data reveals that in 2023-24, 8% of Australians delayed or skipped essential medicines due to cost concerns.

Liz de Somer, CEO of Medicines Australia, said “As the cost of living increases, Australians should not have to choose between medicines and other essentials. The Government’s reduction in the PBS co-pay is a necessary step, but we must ensure that no one has to interrupt their treatment and that lifesaving medicines are within reach for all.”

Over the next four years, the government will invest $689 million in this initiative, helping over 20 million Australians without health or concession cards save up to $6.60 per prescription.

Yet, de Somer warned that while access and affordability to current medicines on the PBS is essential, “it is now time the Government did some more work to ensure timely access to the latest innovations.

“A comprehensive review of the assessment processes (the HTA review) was released in September 2024. This review demonstrates it takes too long for a patient to access a new medicine after it has been proven to be safe and effective by the Therapeutic Good Administration. Affordability and access go hand-in-hand. Let’s get both sides of the equation right for Australians.”

National President Pharmacy Guild of Australia, Professor Trent Twomey, said “This is a significant step towards relieving the financial burden of ill health and chronic conditions and making sure people can get the medicine they need. It’s been 20 years since prescription costs were this low and I’d like to thank Prime Minister Albanese for his vision on delivering this change.”

This is the second time the Albanese Government has reduced the PBS co-payment. In 2023, the co-payment dropped from $42.50 to $30, marking a historic shift in the 75-year history of the PBS. Without these changes, Australians could have found themselves paying as much as $50 per prescription by 2026.

“Everyday community pharmacists have conversations with our patients about the tough choices they are forced to make, between filling scripts and other essentials such as rent, groceries and petrol. For patients with multiple, regular prescriptions for essential medicines these savings will quickly make a difference,” Professor Twomey added.

“This will keep people healthier and prevent serious complications resulting from patients not taking their essential medicine.”

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