Overview

• The Albanese government has pledged to reduce the maximum cost of PBS-listed medicines to $25 per script starting January 2026, contingent on re-election, with the Coalition matching the policy.
• The price reduction would save Australians $200 million annually and apply to over 80% of PBS medicines, with pensioners and concession cardholders continuing to pay $7.70 per script.
• The PBS, a cornerstone of Australia's healthcare system, faces criticism from US pharmaceutical companies, which claim its pricing policies are discriminatory and harmful to their profits.
• Both major Australian political parties have categorically ruled out negotiating changes to the PBS in response to US trade pressures, emphasizing its bipartisan support and critical role in healthcare.
• US pharmaceutical lobbyists have urged the Trump administration to impose retaliatory tariffs on Australian pharmaceutical exports, raising concerns about potential economic impacts.