This includes $130 million in savings this year alone following the reduction of the general co-pay price from $31.60 to just $25 on 1 January.
In 2026 prescription prices are at their lowest level in 20 years – without the Government’s intervention the cost of a PBS script would now be about $50.
However, without further action, the $25 general co-payment will begin rising with indexation from 1 January 2027.
The Pharmacy Guild of Australia is calling for the Government to freeze the general co-pay price until 2030. Unlike spending policies that inadvertently drive-up aggregate demand, freezing the PBS co-payment delivers a direct disinflationary effect.
Locking in 2026 prices for 2027 puts downward pressure on inflation, with any secondary demand effects being too negligible to offset the price relief effects.
National President, Professor Trent Twomey, says the landmark reduction is delivering significant cost-of-living relief to those who need it most.
“While the cost of many of life’s essentials, such as fuel and groceries continue to rise, Australians have enjoyed peace of mind knowing the price of their PBS medicines is frozen.
“Putting billions of dollars collectively back into Australians’ pockets shows exactly the life-changing benefits cheaper medicines deliver,” Professor Twomey said.
“Everyday community pharmacists see the tough choices people make when household budgets are stretched. Going without essential medicine should never be one of them.
“The Albanese Labor Government’s $25 PBS general-payment continues to deliver real and immediate cost-of-living relief. The next step is to freeze it.”
Concession card holders already have their co-payment frozen at $7.70 until 2030.
“Australians paying the general co-payment deserve the same certainty,” Professor Twomey said.
The $25 maximum was only the second reduction to the PBS co-payment in its history, following the previous cut in 2023.
“Keeping medicines affordable means more Australians fill the scripts they need to stay healthy and keep out of already-stretched GP clinics and emergency departments,” Professor Twomey said.
The Guild is calling on the Federal Government to keep the freeze at $25 until 2030, matching the existing freeze for concession card holders.