House debates

Wednesday, 27 August 2025

Bills

National Health Amendment (Cheaper Medicines) Bill 2025; Second Reading

9:38 am

Photo of Sam LimSam Lim (Tangney, Australian Labor Party) Share this | Hansard source

I rise to make my contribution on the National Health Amendment (Cheaper Medicines) Bill 2025. I can only speak highly of this bill and the real cost-of-living relief that cheaper medicines will provide. I naturally think of Tangney when I think about why this bill is important and who this bill will benefit.

Cheaper medicines benefit so many people, but here is one of them. I first met this gentleman in Willagee when I was a candidate running in the 2022 election. When I knocked on his door, he told me about some of his health issues, including his diabetes and the affordability of medicines. Early this year, I was very happy to go back to him and see him doing well. We talked about how the Albanese government's commitment to strengthen Medicare has benefited him, including the actions we have already taken to make medicine cheaper. He continues to deal with his health conditions daily, and he told me how the changes we have made have helped him. He gave me a big hug, and he told me he was glad to see me. 'This government,' he said, 'has helped me a lot.'

A few months ago, I told him about our election commitment to make medicine cheaper, and I'll be excited to go back to see him again in January, when the general patient co-payment drops to a maximum of $25. As of 31 July, people in Tangney have already saved more than $11 million with cheaper medications. Now, with this bill, they will save even more. This bill delivers on the Albanese government's 2025 election commitment. This bill reduces the Pharmaceutical Benefits Scheme—PBS—general patient co-payment by $6.60, from the $31.60 that it is currently to $25 from 1 January next year.

The last time these PBS medicines cost no more than $25 was in 2004, more than 20 years ago. When I talk to my constituents about this, it is easy for us to reflect on what the world was like back in 2004, what we were doing and how we looked. My children were very young. My youngest was still in high school. But truthfully, when I first heard about this information, it touched me because 2004 was only two years before my oldest daughter was diagnosed with cancer. Even though my daughter's diagnosis was two decades ago now, I can still remember it like yesterday. At that time, my daughter was at uni, preparing for exams, and suddenly the oncologist called our family for a meeting. Then, before I could blink, my daughter was having aggressive treatment to fight the cancer. I had just joined the WA Police Force, so I was driving 100 kilometres a day for the police academy training and then rushing back at night to be with my daughter. That was the hardest year for me. The life-saving care was all thanks to Medicare and the PBS. During these difficult years, my family relied on the Medicare system and the PBS. Without our health system, my daughter's treatment would have been very unaffordable. The life-saving medication would have meant many more sacrifices. Although my daughter was unwell for many years, her story is a happy one: she made a full recovery. I really praise Medicare, and I will always advocate to protect and strengthen it.

Just as Medicare and the PBS were there for my family during our times of need, cheaper medicines will benefit people in their times of need. My family didn't know when we were going to need it. We didn't know when our children would fall sick or we would fall sick. This is one of the reasons why this legislation is so important. The Albanese Labor government is ensuring that cheaper medicines are there when you need them. With this bill, all medicines that pharmacies can discount today can continue to be discounted once the co-payment is cut to $25. The legislation includes specific provisions to protect the ability of discounting.

Cheaper medicines are another key cost-of-living measure delivered by our Labor government. This is another important step being taken to help with rising everyday costs for individuals and families across Australia. This government has taken measures to cut the costs of medicines. In 2023, the government made the largest cut to the cost of medicines in the history of the PBS. Now, our government is going even further and slashing the cost of medicines again. This is more than a 20 per cent cut in the maximum cost of PBS medicines. This will save Australians over $200 million each year. Four out of five PBS medicines will continue to become cheaper because of our government's $689 million investment.

When I think about the impact of cheaper medicines, I think of the many Tangney constituents who will benefit. Over the years, I have had a few people stop me at the door and tell me to wait. They come back holding their medication and tell me about why they need this medication. They tell me that these medications are life saving for them. First, they would show me the front of the package. One time I saw a cost of more than $30,000 and I thought to myself, 'Wow, this prescription is so expensive', and then they proudly showed me the back and the cost that they actually paid, thanks to the PBS. I saw it wasn't a big number—like a skyrocketing number—but a two-digit number. This was thanks to the PBS. I had a long discussion with this constituent about their story, about why the PBS has been so meaningful to them and about the importance of affordable medicines. This was not the constituent's only medication, and making medicines even cheaper will make a difference. This person's story stays with me because it is through the PBS that he is able to manage his conditions.

I had a great conversation with three friends and neighbours who I like to call the 'three amigos' because they always stay together. When I first met them, they invited me to a local brewery for a beer. I don't drink beer, but they offered me a beer. We had a great conversation. One of our topics was about Medicare. One of the constituents said to me in plain language, 'Without Medicare, I would be broke. There are a lot of things I can't pay for.' His words stay with me because we don't want people to have to choose between their care and other essentials. We are making a stronger Medicare, and cheaper medicines are a part of it.

More recently, I have heard from some constituents who manage multiple chronic conditions and need multiple medications. Multiple co-payments add up, and so reducing the maximum co-payment will be especially helpful. When I was young, I didn't think about the need for multiple medications. But now, as I'm getting older and as my friends and family are also ageing, I see how many medications we all need every day. Sometimes it is overwhelming. When I talk to some of my older constituents, seniors like me, we speak to each other about the medications we need to take. A prescription isn't just a one-off. It is every day. Reducing the co-payment will make a difference for all these people—not a one-time difference but an ongoing difference.

Cheaper medicines help to take pressure off family budgets. Lowering the cost of co-payments helps to reduce this burden. I think that anything we can do to help families with the cost of living is so important. When medicines are cheaper, more people are likely to get the treatment they need and when they need it. This is good for everyone—for individuals, families, our communities and also our health system. At the end of the day, everyone should have access to the medicines they need. Access shouldn't depend on your income. This legislation builds on action our government has already taken to deliver cost-of-living relief and to make medicines on the PBS more affordable. This action includes changes to the PBS safety net.

In July 2022 we implemented a 25 per cent reduction in the number of prescriptions a concessional patient needed to fill before the PBS safety net kicked in. This means concession card holders can get more free and cheaper medicines sooner. In January 2023 the Albanese Labor government made the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a general prescription falling from $42.50 to only $30.

The Albanese Labor government began introducing 60-day prescriptions from September 2023, and doctors now have the option to provide a 60-day supply of medication, rather than just a 30-day supply, to patients with an ongoing condition. These changes have helped people save time and money, reducing the number of times they need to see their GP or attend a pharmacy. It again speaks to the tangible cost-of-living measures taken by our government.

In January 2025 the Albanese government froze the cost of PBS medicines for all Australians, with co-payments not rising with inflation for the first time in 25 years. Pensioners and concession card holders had their co-payments frozen at $7.70 for five years. They will continue to benefit, and the cost of their PBS medicines will stay frozen at this level until 2030. Cheaper medicines are good for the hip pocket and good for your health. Now, through this bill, the Albanese government is delivering cheaper medicines and a stronger Medicare.

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