The 2025–26 Federal Budget was handed down on Tuesday, 25 March 2025. It delivered a major win for patients, with $784.6 million committed to reducing the maximum cost of PBS-listed medicines for non-concession card holders to just $25 from 1 January 2026.
The move answers calls from the Guild and an alliance of health and patient groups across the country and was welcomed as a significant step toward affordability and better health outcomes.
“Every week, more than 400,000 scripts will be reduced to $25,” said Pharmacy Guild National President Professor Trent Twomey. “Collectively, over the next four years, this price reduction will put $784.6 million back in patients’ pockets.”
“By 1 January 2026, medicine prices will be the lowest in 20 years.”
The announcement, supported by both sides of Parliament, follows the Prime Minister’s public commitment to reduce out-of-pocket medicine costs at last week’s Australian Pharmacy Professional Conference on the Gold Coast.
Prime Minister Anthony Albanese and Pharmacy Guild National President Prof Trent Twomey, following the announcement at APP2025.
Had the Government not acted, PBS co-payments could have risen to nearly $50 per script by 2026. In 2023, the maximum co-payment was reduced from $42.50 to $30 – and this further reduction continues the Government’s commitment to supporting patients struggling to afford their essential medicines.
Patients like Jess McGowan, a Canberran who manages multiple chronic conditions, say this change will make a meaningful difference.
“This announcement will save me hundreds of dollars per year,” Ms McGowan said. “I won’t have to stress about my medications — what I can afford, or missing food or rent. My stress levels will go down a lot. I’ll no longer have to ration my medication.”
The Budget also includes a $1.8 billion investment in new PBS listings, including oral contraceptives and treatments for endometriosis, menopause, lymphoma and treatment-resistant depression — further enhancing the role of pharmacists in improving equitable medicine access.
These measures reflect the critical contribution community pharmacies make every day to ensure Australians can access the medicines they need, when and where they need them.
