House debates
Tuesday, 26 August 2025
Bills
National Health Amendment (Cheaper Medicines) Bill 2025; Second Reading
1:18 pm
Claire Clutterham (Sturt, Australian Labor Party) Share this | Hansard source
I am proud to rise today to speak on this legislation, the National Health Amendment (Cheaper Medicines) Bill 2025, which is part of the Albanese Labor government's dedication to more affordable and accessible health care for all Australians. It is also part of the extensive raft of cost-of-living measures that this government has initiated. The cost-of-living relief initiated by the Albanese Labor government is extensive. Tax cuts, more tax cuts combined with energy bill relief, reduced higher education and VET debt, a record and welcome investment in women's health and more bulk-billing are all part of the suite of measures designed to help Australians and their families. Nothing, however, is more important than affordable and accessible health care. A good job, cheaper prices at the supermarket, lower energy bills and reduced education debt are welcome but cannot be leveraged by the average Australian if they are unwell. In a country such as Australia, everyone should be able to take advantage of the opportunity that this great land provides, the opportunity to live a productive and meaningful life.
Having lived around the world, I can say that our healthcare system is the envy of the world, and this government is determined to protect it. Good health is everything, and a critical enabler of achieving good health is being able to access health care. That is why the Albanese Labor government is making cheaper medicines even cheaper by delivering on the government's 2025 election commitment in relation to the cost of medicines. From 1 January 2026 the cost of the Pharmaceutical Benefits Scheme general patient co-payment will reduce from $31.60 to $25. The last time PBS medicines cost no more than $25 was more than 20 years ago, in 2004.
Under this government, we know that downward trends are becoming increasingly common. Inflation is going down. It had a six in front of it when we came to government; now it has a two. Interest rates are going down, the unemployment rate is going down and the cost of medicines is going down. We know that under this government some things go up, like wages for low-income workers, like paid parental leave and like superannuation on paid parental leave. But we know that the cost of medicines is going down.
This reduction of the co-payment to $25 is a critical cost-of-living measure delivered by the Albanese government. The largest cut to the cost of medicines in the history of the Pharmaceutical Benefits Scheme was in 2023—again, on this government's watch—when the cost of medicines on the PBS was lowered to $30, from $42.50. As a result, as of 31 July 2025 the savings in my electorate of Sturt, in Adelaide's east, from the government's action on cheaper medicines has been just over $13 million. Sturt will also be a beneficiary of the Albanese Labor government's health initiatives in that a Medicare mental health centre and urgent care clinic will be delivered to the electorate.
But now we go even further. Importantly, the reduced costs of medicine will include medication newly listed on the Pharmaceutical Benefits Scheme to help address women's unique health needs. Take, for example, the contraceptive pill Slinda, which was first listed on the Pharmaceutical Benefits Scheme on 1 May 2025—one of the first listings of contraceptives on that scheme for, incredibly, more than 30 years. That announcement was made by the federal health minister the Hon. Mark Butler in my electorate of Sturt in May 2025, when we heard from women that, for them, sometimes Slinda is the only option. Because of specific and unique medical circumstances, they cannot take other, more cost-effective forms of contraception. So this listing meant that the annual cost was reduced from more than $300, which is, frankly, prohibitive for some women. If you are a young woman or a low-income earner—perhaps a retail worker, a disability support worker or an aged-care worker—$300 is prohibitive. But now, from 1 January 2026, the cheaper medicines legislation means the cost will be further reduced to $25 for non-concession-cardholders, making it more accessible and affordable to all women, who should not be financially disadvantaged just because of their unique health needs—or, in other words, just because they are women.
At the same time as the announcement about Slinda was made, the announcement about Pergoveris was made. This is a fertility drug. We know that women, with their unique complex health needs, require medication from the early family planning stages of life until they desire to start a family. On this occasion, we met with women who had fallen pregnant because of this drug, now listed on the PBS and affordable. What really struck me about this was that an announcement about contraceptives and fertility drugs at the same time underscored the complex and unique health needs that women have and that the Albanese Labor government is listening to and will continue to listen to.
The National Health Amendment (Cheaper Medicines) Bill 2025 equates to a more than 20 per cent cut in the maximum cost of PBS medicines, which will save Australians over $200 million each year. Four out of five medicines on the Pharmaceutical Benefits Scheme will become cheaper, resulting in more affordable and accessible health care. And we know that healthy economies only occur when there are healthy populations. A healthy population drives productivity. It drives a healthy economy. So health is an economic proposition. Slashing the costs of medicine is a move to promote better health for all Australians, but it is also an economic imperative. Cheaper medicines are good for the hip pocket, good for your health and good for the economy. If medication is skipped, a condition worsens. If a visit to a GP is skipped, a condition worsens. Skip another course of medication, take a few sick days and, all of a sudden, you cannot work, your condition has worsened and maybe you require hospital treatment. This is all about preventive health care, allowing Australians access to affordable health care when a condition arises, not when it has escalated. In Australia, the statement, 'I couldn't afford to fill my script,' should never be uttered. In Australia, the statement, 'I couldn't afford to see my doctor,' should never be uttered.
In addition to the $25 regime, pensioners and concession card holders will continue to benefit from the freeze to the cost of their PBS medicines, with the cost frozen at its current level of $7.70 until 2030. And, as a child of now elderly parents on a raft of different medications, this is very welcome to me. Australia has an ageing population, and we need to ensure that our elderly Australians have access to the affordable health care that they deserve.
All of these initiatives further grow and develop action the Albanese Labor government has already taken to deliver cost-of-living relief through cheaper medicines, including 60-day prescriptions, which save time and money for millions of Australians with an ongoing health condition. Cost-of-living relief is the bread and butter of the Albanese Labor government, and cheaper medicines for all Australians is a critical part of this. Cheaper medicines are good for the hip pockets of all Australians, good for the health of all Australians and good for the Australian economy.
Australians are passionate about health care. During my campaign for the seat of Sturt, my team and I knocked on over 10,000 doors. We talked education; we talked trade; we talked housing. We had great conversations with the engaged voters of Sturt. But a number of weekends jumped out to me as being particularly significant. The first was in November 2024, when the Albanese Labor government announced its policy to wipe 20 per cent off HECS, VET and apprenticeship student debt, which has had an impact on over 25,000 residents of Sturt. The second-biggest weekend was when the Albanese Labor government announced a $587 million investment into women's health. This was welcomed by men and women, because both men and women know that women's health is good for the family and an economic proposition.
As part of this health announcement, the government indicated that it would be funding more treatments for menopause and helping more women suffering from endometriosis, which is a complex condition. There are many women out there who, because of the condition, have been unable to work, unable to get out of bed or unable even to get a diagnosis. The Albanese Labor government has heard you and will be making further investments to ensure the women of Australia get the treatment that they deserve.
Another big weekend of doorknocking was the announcement that Sturt would be the beneficiary—
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