Labor plans PBS medicine cap at $25 if re-elected

Prime Minister Anthony Albanese has announced that, if re-elected, the maximum cost of prescription medicines under the Pharmaceutical Benefits Scheme (PBS) will be capped at $25, starting January 2026. This initiative is part of Labor's broader 'Cheaper Medicines' policy aimed at addressing cost-of-living issues, and is expected to save Australians more than $200 million annually. The policy, which will be detailed in the upcoming budget, is projected to cost the government $689 million over four years and would benefit four out of five PBS-listed medications. The Coalition has indicated support for the measure, highlighting the importance of affordable healthcare in the current economic climate. Albanese emphasized that this is a significant step towards reducing healthcare costs and inflation, promising a stronger Medicare system alongside cheaper medicines. The announcement comes amid ongoing pressure from American pharmaceutical companies regarding Australia's drug pricing policies.