House debates

Wednesday, 27 August 2025

Bills

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

9:37 am

Emma Comer (Petrie, Australian Labor Party) Share this | | Hansard source

Take Rose, a Redcliffe pensioner who wrote to my office. She fills six scripts a month for arthritis and other health issues. Because of the freeze, she won't see her costs creep up year after year. She can plan her budget, pay her bills and still afford the medicines that keep her healthy and independent. This is the kind of practical, compassionate reform that shows Labor's values in action: looking after those who built this country and making sure they can age with dignity, security and health.

This is the difference a Labor government makes. We don't just talk about fairness; we deliver it. We don't just promise relief; we put it straight back into people's pockets. Whether it's cheaper medicines, stronger Medicare or better wages for workers, Labor is on your side. We're the party that built Medicare, we're the party that's protecting Medicare and we're the party that's making sure that it's stronger than ever for the next generation. This isn't just about dollars. It's about fairness, dignity and peace of mind. It's about standing by the principle that health care should never be an extra burden for those who can least afford it. That's why I'll continue working hard for Petrie and for all Australians, to keep health care accessible.

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.

9:52 am

Renee Coffey (Griffith, Australian Labor Party) Share this | | Hansard source

I ask you to cast your mind back to 2004. Australia's Mary Donaldson married Frederik, the Crown Prince of Denmark. The game World of Warcraft was released on PC, Britney Spears sang 'Toxic' while Shannon Noll asked, 'What about me?' Facebook had just been founded, Shrek 2 was the biggest film, a Big Mac cost $4.05, you could get two litres of milk for well under $3, and prescriptions on the PBS were less than $25.

Today, whenever I speak to people in Griffith, I hear how much time, effort and resources families are putting in to look after themselves and one another. During my campaign in Griffith I knocked on close to 15,000 doors. Since then, time and time again at my mobile offices across the electorate, Griffith locals have raised with me the rising cost of medicines as a key issue for them and their families. Whether it's getting their kids better from an illness or purchasing medicines to help manage a chronic disease, the rising cost of medicines is regularly raised as a significant cost-of-living burden.

It saddens me to know that, for many in my community, filling a prescription is not always as simple as it should be. Sometimes it feels like just one more barrier to getting the care they need. That's why I'm proud to stand here today and speak in support of the National Health Amendment (Cheaper Medicines) Bill 2025. This bill is about fairness, dignity and health equity. It's about making sure no-one in our country has to choose between their health and their household budget. This bill is practical relief for the household budget, and it is about better health outcomes for our community.

Back in 2004, more than 20 years ago, when Australians were paying no more than $25 for their PBS medicines, families could go to the chemist knowing that the medicines they needed were within reach relative to the wage that they were earning. But, in the years since, the cost of prescriptions has steadily risen, and, for many people, it has become harder to keep up.

It's worth pausing for a moment here to look at the coalition's track record when it comes to health. They froze Medicare rebates for six long years, pushing up GP costs and forcing more people into emergency departments. They knocked back proposals for cheaper medicines when they were in office, keeping prices higher for patients. They cut hospital funding and picked fights with the states instead of fixing the system. The difference between those opposite and the Albanese Labor government couldn't be any clearer. Labor strengthens Medicare and makes medicines cheaper. The Liberals weaken Medicare and let prices soar. Now, this government is turning that around, lowering the price so that Australians can once again afford the medicines they rely on to stay well.

From 1 January next year, the general patient copayment of PBS medication will fall from $31.60 to $25, delivering on our election commitment. Deputy Speaker Scrymgour, I will leave it to you to decide whether you'd enjoy a reprise of Shannon Noll and his 2004 musical proclamation that 'it isn't fair', but what I can tell you is a reprise that delivers fairness and one that is welcomed by our community is lowering the cost of PBS medicines to 2004 prices. These are significant changes that people right across the country and in my electorate of Griffith will feel every time they fill their PBS scripts.

I want to be very clear: our Pharmaceutical Benefits Scheme, our PBS, saves lives. When I was a teenager growing up in Brisbane's Hawthorne in the 1990s, I went to school with a good friend Rhelma Donaldson, and I swam at the Morningside Flyers Swim Club with my friend Amy Franklin. Both of these friends were teenagers with cystic fibrosis. Both passed away within six months of one another. Rhelma was just 16 years old, and Amy had just turned 18. Back then we had no effective treatments for CF, an inherited, chronic and life-threatening disorder that damages the lungs and digestive system. Today we have effective treatments available for this condition, but they are prohibitively expensive. One life-saving and transformational treatment, Trikafta, can cost families over $250,000 per year. Following its introduction to the PBS in 2022, from 1 July this year, our government has expanded this medication's listing to include CF patients two years and older who have at least one CFTR gene and who are responsive to treatment. This means more than 90 per cent of the 3,800 Australians living with CF now have access—and now, with these changes, this medication will cost families just $25 per script. More than likely, if we had had this medication available and affordable then, Rhelma and Amy would still be here today. I am thankful to say that my best friend, who also has cystic fibrosis, is most certainly here because of this medication and because of its inclusion in our PBS.

Not too long ago I had the opportunity to discuss the latest price drop of PBS medications with Paris, a young local pharmacist who lives in Murarrie in my electorate. Paris knows how these changes are going to make a big difference. She told me:

For many people in our community, even small reductions in the cost of medicine can make a huge difference.

Families are already struggling with day-to-day living expenses, so knowing their essential prescriptions will cost no more than $25 provides real relief and peace of mind.

Paris also shared a heartbreaking story. She told me about a patient who was cutting her antidepressant tablets in half just to make them last longer. This woman was juggling medicines for cardiovascular disease, diabetes and mental health, and she just simply couldn't afford them all. But that, unfortunately, was not the only sad story I heard.

A pharmacist in Coorparoo told me of a young mum who came to the counter, faced with a terrible choice: should she buy the medicine she needed for herself or put food on the table for her kids? No parent should ever have to face that decision, and these reforms mean they won't have to. No Australian should ever have to ration their treatment and make sacrifices to their health because of the rising cost of scripts, and that's why this bill matters.

In 2023, we made the single biggest cut to the cost of PBS medicines in history. But we know there is more work to do, and that's why this bill responds to these needs by delivering a range of measures, including more than a 20 per cent cut in the maximum cost of PBS medicines, saving Australians over $200 million every year. Four out of five PBS medicines will become cheaper because of this government's $689 million investment. Pensioners and concession card holders will keep paying no more than $7.70, with that cost frozen until 2030. Importantly, all medicines that pharmacies can discount today will continue to be discounted once the copayment is cut, with provisions included to protect that availability.

This bill strengthens the Albanese government's strong commitment to affordable medicines and builds on actions already taken to deliver cost-of-living relief through cheaper medicines. I want to take this opportunity to outline what our government has already delivered. We're providing more free or cheaper medicines sooner, with a 25 per cent reduction in the number of scripts a concessional patient must fill before the PBS safety net kicks in. We're delivering the largest cut to the cost of medicines in the history of the PBS. The maximum cost of a general script fell in January 2023 to $30 from $42.50. We introduced 60-day prescriptions in three phases from September 2023, saving time and money for millions of Australians with an ongoing health condition. We also froze the cost of PBS medicines, with co-payments for all Australians not rising with inflation for first time in 25 years.

So far in my electorate of Griffith, my community has saved nearly $11 million because of our cheaper medicine initiatives. Let me be clear. When we reduce the cost of common medicines such as cholesterol tablets, antibiotics, blood pressure medication and anti-depressants, we're delivering real relief where people actually need it. We're also delivering on women's health. For the first time in more than 30 years, oral contraceptives like Yaz and Yasmin are listed on the PBS. Women who used to pay nearly $400 a year now pay $126. From next year, that will fall even further to just $25 per script and to $7.70 for concession card holders. The difference between $80 and $7.70 for essential medicines is the difference between exclusion and access—between anxiety and peace of mind.

Another Griffith local Gina shared with me her heartbreaking story of untreated infertility and endometriosis. Making more oral contraceptives available will be life changing for her, as she transitions through perimenopause. This is a view that was recently also shared with me when I met with the CEO of Pelvic Pain Australia, Renee Rankin. Renee and I discussed how expanding the range of affordable treatment options not only gives women more choice but reduces the burden of their symptoms on families, communities and the economy. This didn't happen by accident. It's a product of strong advocacy from pharmacists, the National Women's Health Advisory Council, clinicians and, most importantly, patients who raised their voices. As our Prime Minister said, the size of your bank balance shouldn't determine the quality of your health care.

When I think about what these measures will mean, I think about the young mum in Coorparoo who was weighing up whether to provide food for her kids or fill her script. I also think about that young woman cutting her medication in half to make it last longer. I also think about all of the families with young children who have cystic fibrosis and what these changes will mean for them. This bill reassures all of them that they don't have to choose between their health and their hip pocket—that their health and wellbeing matters. This is what fairness in health care looks like. It is cheaper medicines, a stronger Medicare and real relief for families. That is why I am proud to commend this bill to the House.

10:03 am

Photo of Alison ByrnesAlison Byrnes (Cunningham, Australian Labor Party) Share this | | Hansard source

I am pleased to rise today to speak in support of the National Health Amendment (Cheaper Medicines) Bill 2025. People in my community, like so many around Australia, are struggling with the cost of living. Medicines and health care are the No. 1 issue for so many people and making sure our country doesn't go the way of others, where it is only those who can afford health care who receive it. I am truly proud to be part of a government that is doing everything it can to ensure that people in my community get access to cheaper medicines and more affordable and equitable health care.

This bill is not our first to reduce the cost of medicines. Since our government was elected in 2022, we have been working hard to help local people save on their medicines. We promised we would, and we have delivered on that promise time and time again. In July 2022, we lowered the PBS safety net threshold by the equivalent of 12 fully priced scripts for concession card holders, saving them up to $81.60 per year. This also saved general patients up to $85 a year—the equivalent of two fully priced scripts. In January 2023, we delivered the largest cut to the cost of medicines in the history of the PBS. We reduced the maximum cost of a general script from $42.50 to $30—a massive saving, particularly for people who are taking multiple medications every day. This bill takes that one step further, but we'll get there in a minute.

Another one of our great cost-saving measures that has been saving money for patients in the Cunningham community since September 2023 is 60-day dispensing, which helps local people with chronic ongoing health issues to get two months worth of medicines for the price of one. Not only does it save money but it also saves time, reducing trips to the pharmacy and, importantly, reducing trips to the GP. Everyone knows it's been getting harder and harder to see a GP. This measure saves you time and saves you money, and it frees up GPs to see even more patients who really need their care. I know what a difference it makes to the people of the Illawarra.

But, wait, there's more. In January of this year, we froze the cost of PBS medicines, with co-payments not rising with inflation for the first time in 25 years. For concession card holders, the co-payment for PBS medicines has been frozen at $7.70 until 2030. It means a sigh of relief and certainty for so many people. In my electorate of Cunningham alone, local people have saved $10.7 million on more than 2.2 million cheaper scripts, all thanks to these policies making medicine cheaper for all Australians. That is just incredible. These policies are making a real and tangible difference in the lives of local people, saving them money and making their health care more accessible, because no-one should be worried about how they are going to afford their medicine. That's just a little, short wrap-up of what we have already done to reduce the cost of medicines.

Now there is this bill, which takes that a step further, again. Under this bill, the general patient co-payment for medicines listed on the PBS will be reduced from $31.60 to $25 per script. Remember, when we came to office, that figure was $42.50. We reduced it to $30 in 2023; now, it will be $25. This delivers on our election commitment and our ongoing commitment to the Australian people to make medicines cheaper and support them to help with the cost of living. Medicines have not been this cheap since 2004—21 years ago. This is a more than 20 per cent reduction in the maximum cost of PBS medicines and will save Australians over $200 million every year.

As I said, no-one should be choosing between medicine and food, electricity or rent. Health care absolutely must be accessible and affordable to everyone. Our government has taken so many steps to reduce the cost of health care. We've been working hard to add new medicines to the PBS to help people with a range of conditions. Since 1 August, Australians with Parkinson's disease, neuroblastoma, endometrial cancer, cystic fibrosis and melanoma have been able to access new and expanded medicines under the PBS. Without being listed on the PBS, these medicines can cost people living with these conditions hundreds of thousands of dollars. Families of children suffering from neuroblastoma have enough to be worried about. They should be able to afford medicine that can help prevent this awful cancer from returning. This life-saving medicine will soon cost $25 instead of $417,000, and that's just one example.

Last year, we made medicines cheaper for over 100,000 Australians living with type 2 diabetes and with high risk of heart disease by expanding medicines available under the PBS. The expanded medicine listings mean that these treatments are available to patients earlier from their GP or specialist without having to wait for their blood sugar to increase to seven per cent. Since we were elected, we have added hundreds of new medicines to the PBS, which has made medicines more affordable and more accessible for all Australians, and we are always looking at ways to help reduce this burden further.

Another area of health care that I am so proud that our government has prioritised is women's health. In February of this year, we added the first PBS listings for new oral contraceptive pills in more than 30 years and the first PBS listings for new menopausal hormone therapies in over 20 years. The tens of thousands of women who use these drugs will be able to save more than $250 a year, thanks to this change. This is part of a $573 million package that is delivering more choice, lower costs and better health care for women.

I recently met with a really interesting local academic, Theresa Larkin from the University of Wollongong, who came to talk to me about hysterectomies. We all know what a tonsillectomy, appendectomy or lumpectomy is. We all know what they are: a surgical removal of the named body part. It's clear from the name what is being removed and the surgical procedure has a title based in logic and reason. That is until you reach the uterus. Then, all of a sudden, its medicinal removal becomes instead about the so-called hysteria of women, an historical condition only for women from the 5th century that we have since shown does not exist. So why is the removal of the uterus still tied to hysteria rather than following the template of every other surgical removal? What about a 'uterectomy'? It's one of the many lingering biases in women's health care. That bias extends further than the name and has impacted women's access to contraception and to treatment for menopause, perimenopause and conditions like endometriosis and led to a struggle for so many women to get the help that they need to deal with pelvic pain. Too often, their pain and suffering has been dismissed, diminished or ignored—that 'hysteria' bias creeping in again.

Associate Professor Larkin has a keen interest in this field of study. Together with Associate Professor Laurencia Villalba, these two incredible women undertook a study which demonstrated a treatment for cardiovascular patients could also provide life-changing relief for women suffering pelvic pain. The study looked at 113 women aged between 17 and 88, some of whom had been suffering pelvic pain for 25 years. It showed that a minimally invasive procedure which blocked pelvic veins in a similar way to the treatment for blocked arteries provided significant and sustained pain relief for close to 100 per cent of the patients. That is absolutely incredible. It is one of the so many examples of the amazing research abilities of the University of Wollongong.

The women who participated in the study gave an average pelvic pain score of seven out of 10, with 10 being the most pain possible. That is what women are experiencing. It is real, it is debilitating and it needs serious attention. After this treatment, most of the patients had full resolution of their pain—fully gone—with the rest having a score of less than three out of 10. Pelvic pain can be reduced or even cured. It is not in your head. Treatment can change lives. I really want to thank Associate Professor Larkin and Associate Professor Villalba for their truly remarkable and valuable work in this field.

I would also like to acknowledge the incredible work of the former assistant minister for health and aged care, Ged Kearney, among several others. Minister Kearney has been a fierce advocate for women's health and she has worked incredibly hard to make some big improvements, like the $570 million women's health package I mentioned earlier. Not only has this added new oral contraceptive pills; it has also provided choice and access to a range of women's health care. As part of this package, we have provided better access and lowered the cost of long-term contraceptives, with larger Medicare payments and more bulk-billing for IUDs and birth control implants. This will save around 300,000 women a year up to $400 in out-of-pocket costs. We've provided better support for women experiencing menopause, with a new Medicare rebate for menopause health assessments, funding to train health professionals and the first ever clinical guidelines. It will see more endometriosis and pelvic pain clinics open around the country. This package will transform menopause care. It will help women who are suffering get the help that they need sooner without having to constantly justify their pain to doctors who don't believe them. It will help women access the contraception that works for them and help those suffering UTIs to get treatment more quickly.

Fundamentally, this is about saying to women that we are serious about improving access and fairness in our health system. Having a period isn't optional. Going through menopause and perimenopause isn't optional. Every woman should be believed when she says she is suffering from pelvic pain, and she should get the treatment and help quickly.

Two out of three women reported healthcare related bias and discrimination as part of the first Australian #EndGenderBias survey. This is shocking and completely unacceptable. Bias against women in our health system means worse outcomes for women and, ultimately, a bigger burden on our healthcare system and economy. We are committed to addressing gender bias in our health system. It has gone straight back into household budgets, easing the pressure on local families, supporting pensioners and supporting those living with chronic health conditions.

By capping PBS medicines at $25, we are helping Australians save a further $200 million every year. Only Labor can deliver cheaper medicines, only Labor will build a stronger Medicare and I am delighted to support this bill. I commend the bill to the House.

10:15 am

Leon Rebello (McPherson, Liberal National Party) Share this | | Hansard source

I rise to speak on this National Health Amendment (Cheaper Medicines) Bill 2025 because it's a bill about access to health care and the medicines that people need to go about their lives. During the recent campaign, I had an opportunity to doorknock and speak to a number of people across my electorate of McPherson, which is the southern Gold Coast. During that time, I had some quite difficult and challenging conversations with a number of individuals who found themselves, despite being on medications listed on the PBS, in situations where they had to choose whether or not they would purchase those medications. They had to do that for a very concerning reason: Australia's cost-of-living crisis. We've had a number of people unsure about whether they can actually afford access to medications and they've had to prioritise their electricity bills, groceries and other things to keep them going.

It's no surprise that the coalition will support the government on this bill because it's one that will reduce the cost of medicines to Australians, including those in my electorate of McPherson. However, I might speak to what the bill is doing. We've had a situation where medicine in Australia—I've always believed that it's fundamentally about providing that equality of opportunity. In many instances, people are disadvantaged because of their circumstances, because of their genetics, because of matters that are no fault of their own. This is about bringing them up to scratch with everybody else and giving them that access to medication.

The coalition took this policy to the last election as well. We are very proud of our strong track record on the PBS. When we were in government, we made around 2,900 new or amended listings to the PBS. That provided Australians with more affordable access and came to an overall investment of around $16.5 billion. So our commitment to making sure that Australians have access to the medicines they need remains rock solid. The coalition has, for a long time, held the view that all medicines on the PBS that have been recommended by the Pharmaceutical Benefits Advisory Committee should be listed. That's in stark contrast to Labor, who stopped listing new medicines on the PBS the last time they were in government because they ran out of money.

The point I make here is that we're only able to do these things and reduce the cost for people who need these medicines when we have strong economic management. As a country, if we don't consider how we're going to manage our economy, the long-term ability for not only this government but also future governments to provide for Australians, whether it be in health care or not, will seriously be jeopardised. And we've seen this in the past, in 2011, when the Gillard Labor government stopped listing new medicines on the PBS because, by their own admission, they'd run out of money.

I understand as well that late last year almost 50 medicines were deferred from consideration for listing on the PBS, under the watch of this Albanese Labor government. What has that done? The consequences of that for people in my electorate and across Australia are that it has delayed their ability to access their medications, and sometimes the consequences of that are beyond comprehension. The reason that that occurred is because the relevant funding was not provided to the Pharmaceutical Benefits Advisory Committee through the PBS. So, whenever we talk about health care and about providing assistance to Australians by increasing their ability to access medications, first and foremost we need to talk about the economic capability of the government to do that.

A previous speaker spoke about the Labor government's record on women's health. We have seen some concerning delays in the listing of new medicines on the PBS under this current government, and that includes in the space of women's health. I understand that, before the election, the government announced the listing of an important medicine for endometriosis, and I've spoken to so many women—in particular, some young women in my electorate—who are really struggling with endometriosis. The relevant medication, Ryeqo, was listed on the PBS by the government, and that's great news. It's great news for women who suffer from this chronic condition in Australia and in my electorate of McPherson as well. But that medication had been recommended for listing on the PBS for more than a year before the announcement was actually made, and that level of delay is problematic for the people who depend on this to ameliorate their quality of life.

So, when those opposite speak about their credentials on women's health, I am somewhat concerned that we are also seeing these delays from this government that claims to be well-credentialled in that space. That's just not good enough, because we all know that Australian women must have affordable access to the medications and treatments that they need—especially now, as they face quite high healthcare costs.

On the health technology assessment review, which was commissioned by the former coalition government, we haven't really seen any movement either. The release of the review was delayed, and it's one of so many different reviews—in fact, 70 reviews, highlighted in the department of health's incoming brief—that were conducted in Labor's first term. I think that people on the ground in my seat and around the country are somewhat over reviews. We need to see action now, and that's important if we are going to provide that equality of opportunity as to health care that I spoke about earlier.

We, as the coalition opposition, support this bill, but we do so while highlighting the problems and the delays that this government has caused to listing medicines on the PBS—in particular for women, but also for everybody else. I go back to the point that it is absolutely critical that we, here in this place, understand that our ability to continue to act for the benefit of Australians, in listing more medicines on the PBS, rests upon our ability to manage our economy well and to make sure that we are spending in an appropriate fashion.

In closing, I'll say that the commitment of the coalition in this space remains strong. I believe that, in a country such as Australia, we are blessed with incredible opportunities and we are very lucky in terms of not only our geography but also the country that we have created. Health care is something that we as members of parliament should always strive for at the highest standards. We in the coalition will always do that. We will continue in our strong track record in support of the PBS and, in doing so, support the men, women and children across Australia who rely on medications in order to go about their lives and live lives as Australians that are happy and able to contribute to Australia.

10:25 am

Carol Berry (Whitlam, Australian Labor Party) Share this | | Hansard source

To begin with, I do need to address some of the comments made by the member for Macpherson. I challenge the idea that consistent performance on the part of the coalition has been there in relation to the defence of the PBS and the defence of public health. Only the Labor Party has consistently defended public health and consistently defended the PBS. In fact, we introduced the PBS. I think it's important that we recognise that the Australian public likewise understands and believes in the Australian Labor Party's commitment to public health. That's why we were backed in at the last election.

I support the National Health Amendment (Cheaper Medicines) Bill 2025 because it reinforces the Albanese government's record of making cheaper medicines even cheaper. It delivers on a commitment we made before the 2025 election. Specifically, this bill reduces the Pharmaceutical Benefits Scheme general patient co-payment from $31.60 to $25 from 1 January next year. The last time PBS medicines cost no more than $25 was more than two decades ago, in 2004, and a lot has happened in those 21 years. It's sobering to realise that 2004 was the year that a young Harvard university student Mark Zuckerberg first launched an idea he called 'the Facebook' from his dormitory. The launch of the iPhone was still three years away. 2004 was the year that the Australia-United States Free Trade Agreement was signed, Jetstar took its first flight, Ian Thorpe led Australia's record gold medal tally at the Athens Olympics and Tasmania's Mary Donaldson married Frederik, Crown Prince of Denmark. Remarkably, it was also the year my colleague in the upper house, Senator Charlotte Walker, was born. Surely that can't be true, and it makes us all feel very old!

By making cheaper medicines even cheaper, Labor is further easing the cost-of-living challenges facing so many Australians. This cut of more than 20 per cent to the maximum cost of PBS medicines will save Australians over $200 million each year. Importantly, it builds on other action we have taken over the past three years to deliver cost-of-living relief through cheaper medicines. This includes the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a general script falling from $42.50 to $30, a change that has already saved patients over $770 million; a 25 per cent reduction in the scripts a concessional patient must fill before the PBS safety net kicks in, delivering 73 million additional free scripts and saving pensioners over half a billion dollars; 60-day prescriptions, saving time and money for millions of Australians with ongoing health conditions; and freezing the cost of PBS medicines, with co-payments, for the first time in 25 years, not rising with inflation. Overall, since winning government in 2022, Labor's cheaper medicines initiatives have saved people in Whitlam a substantial $12.6 million.

It is important to point out that pensioners and concession card holders will continue to benefit from the freeze to the cost of their PBS medicines, with the cost frozen at the current level of $7.7 until 2030. Also, all medicines that pharmacies are able to discount today can continue to be discounted even when the co-payment is cut to $25. Like the battle to establish Medicare, which was introduced as Medibank by the Whitlam government in 1975 and was eroded and then dissolved entirely by the 1981 Fraser government before being reinstated as the Medicare we know today by the Hawke government in 1984, the history of the Pharmaceutical Benefits Scheme involves Labor governments fighting for equitable access for ordinary Australians.

Eighty-one years ago, towards the end of World War II, John Curtin's government introduced legislation for a pharmaceutical benefits scheme. The main driver was for all Australians—not just the few who could afford them—to have access to the growing number of wonderful antibiotic drugs. The proposed legislation provided that any Australian resident would be entitled to be given medicine at no charge if they presented to a pharmacist a prescription written by a registered medical practitioner on an official government form. The pharmacist would be reimbursed by the government. An expert committee would determine a list of approved medications to ensure quality and effectiveness. It sounds like an excellent idea, right? However, doctors strongly opposed the scheme, and so did Labor's conservative political opponents. The doctors feared the legislation was part of a broader government agenda to interfere with their work and curb their pricing power. Interestingly, the organisation that represented Australian doctors at the time was called the British Medical Association. The body did not become the Australian Medical Association until 1962.

The Pharmaceutical Benefits Act 1944 was passed by parliament, and the list of approved medications was printed. But, in 1945, the Victorian branch of the British Medical Association challenged the legislation in the High Court of Australia. The doctors argued that the Commonwealth did not have the power to spend money on the provision of medicines, and the High Court agreed. This High Court decision prompted a referendum in 1946 to amend the Constitution to allow for Commonwealth provision of pharmaceutical benefits, among other things. The referendum was passed, making it one of only eight successful referendums of the 45 that have been put to Australians since Federation.

John Curtin died at the Lodge while in office in July 1945, and Ben Chifley led Labor to re-election in 1946. So it was Chifley's government that, following the 1946 referendum, introduced an amended Pharmaceutical Benefits Act in 1947. But the British Medical Association continued its campaign against it. They did offer to allow a limited range of drugs to be prescribed under the PBS, but the government rejected that offer. Furthermore, the government decided to impose fines on doctors who didn't use official prescription forms. The doctors challenged this in the High Court, and they were successful once again. The British Medical Association estimated that, in 1949, five years after the Curtin government's first attempt to introduce a pharmaceutical benefits scheme, only 157 out of 7,000 practising Australian doctors ever cooperated with it. Australian doctors, unfortunately, had successfully torpedoed Labor's efforts to introduce a PBS.

Labor lost the 1949 election, and the new Menzies government settled for a reduced, safety-net PBS, which recognised a limited number of life-saving and disease-preventing drugs. However, the development of an increasing number of new drugs introduced in the 1950s meant that this was clearly inadequate. In 1960, 16 years after Curtin introduced the concept, the PBS finally became a comprehensive scheme. It included a patient contribution, or co-payment, of five shillings, or 50c in today's decimal language.

I believe that John Curtin, the original proponent of the Pharmaceutical Benefits Scheme, would be proud of the Albanese Labor government's achievements in ensuring Australians have equitable access to medicines. And this is only one element of this government's focus on the health of all Australians, particularly through strengthening Medicare. The achievements of the Albanese government's first term include tripling the bulk-billing incentive so that people who need to see their GP most often can—pensioners, concession card holders and families with children; restoring bulk-billing for 11 million Australians, creating an additional six million bulk-billed GP visits; opening 87 bulk-billed Medicare urgent care clinics, making it easier for Australians to get the urgent treatment they need free of charge while taking pressure off our hospitals; establishing a network of 61 free Medicare mental health centres; establishing 22 endometriosis and pelvic pain clinics to help Australian women with endometriosis and polycystic ovary syndrome get the care they need; and boosting hospital funding by $1.7 billion, delivering more money for public hospitals in every state and territory.

Following these achievements in health during its first term, the re-elected Albanese government has committed to further benefitting the health of Australians by delivering an additional 18 million bulk-billed GP visits every year so that Australians can see a bulk-billing GP. This is the single largest investment in Medicare's history. We're opening 50 more Medicare urgent care clinics—including a clinic in Shellharbour, in my electorate of Whitlam—in addition to the 87 opened in our first term, meaning that four out of five Australians will live within a 20-minute drive from a Medicare urgent care clinic.

We're growing the health workforce to deliver more doctors and nurses than ever before, with the largest GP training program in Australia's history and hundreds of scholarships for nurses and midwives to extend their skills and qualifications. We're investing more than $790 million in women's health, including making contraceptives cheaper and funding more treatments for menopause. We're opening an additional 11 endometriosis and pelvic pain clinics, bringing the total to 33, and extending their focus to also provide specialist support for menopause and perimenopause. We're investing in free mental health support for Australian parents through another eight perinatal mental health centres around the country. We're backing men's health, including investing $20.7 million for grassroots initiatives in community settings and taking pressure off hospitals with the launch of 1800MEDICARE, a free nationwide 24/7 health service line that provides after-hours advice and an after-hours GP telehealth service.

The Pharmaceutical Benefits Scheme is a key component of the Commonwealth's investment in Australia's health system. The Albanese Labor government has shown its commitment to this system by investing $23.5 billion to strengthen Medicare since its 2022-23 budget. The National Health Amendment (Cheaper Medicines) Bill delivers on a commitment we made prior to the 2025 election. It builds on our earlier actions to deliver cheaper medicines and help ease cost-of-living challenges, and it contributes to further strengthening Medicare. That benefits all Australians.

Making medicines cheaper is a tangible way we are helping with the cost of living. In my work with community organisations and in my electorate, I see the impact that health expenses can have on individuals and families. When I was the CEO of the Illawarra Women's Health Centre, in particular, I met many women, particularly older women, who were struggling with the cost of medicines. When speaking with people within my electorate of Whitlam, I know how much of a difference reducing the costs of medicines can make. Australians are understandably proud of the PBS, and we're prepared to defend it. It is a very practical way that Labor is delivering on reducing the cost of living, particularly for those who need it the most. Under these changes, four out of five PBS medicines will become cheaper because of our government's $689 million investment.

To recap, this bill builds on action we've already taken to deliver cost-of-living relief through cheaper medicines, including more free and cheaper medicines sooner, with a 25 per cent reduction in the number of scripts a concessional patient must fill before the PBS safety net kicks in; the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a general script falling to $30 from $42.50; 60-day prescriptions, saving time and money for millions of Australians with an ongoing health condition; and freezing the cost of PBS medicines, with co-payments for all Australians not rising with inflation for the first time in 25 years. Importantly, 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 availability of discounting.

Cheaper medicines are good for the hip pocket of Australians and good for their health. Through this bill, the Albanese government is delivering cheaper medicines and a stronger Medicare, and I commend this bill to the House.

10:39 am

Basem Abdo (Calwell, Australian Labor Party) Share this | | Hansard source

I want to thank the member for Whitlam for her contribution, and I'm proud to stand alongside her in support of this bill, which does precisely what it says. It delivers cheaper medicines—a simple, principled objective to be delivered by the Albanese Labor government. It's a simple, effective proposition: Australians will no longer have to pay more than $25 for any medicine on the Pharmaceutical Benefits Scheme.

Let's unpack that. For the first time in over two decades, essential medicines will be capped at $25 a script. Last time this was the case was in the early 2000s, back when we were all glued to our soapbox, watching Kath and Kim, and Anthony Albanese was busy campaigning for the return of his beloved South Sydney Rabbitohs to the NRL. Times have changed, but the inherent value of affordable medicines has most certainly not. This is cost-of-living relief that matters to every Australian household—relief that shows once again that, when Labor are in government, we put the health and dignity of Australians first.

I want to touch on the scale of our reforms. This bill, the National Health Amendment (Cheaper Medicines) Bill, reduces the PBS general patient co-payment from $31.60—an already reduced cost, again thanks to the Albanese Labor government—down to $25 from 1 January next year. This is a cut of more than 20 per cent to the maximum cost of PBS medicines. It will save Australians over $200 million every single year. As of 31 July, people in my electorate of Calwell had saved over $8.9 million, thanks to our already legislated cheaper medicines policy. And there is still more to do. Four out of five PBS medicines will become cheaper because of this government's $689 million investment. This will have a direct and significant impact on the quality of life of millions of Australians who rely on medications to maintain their health.

We should never underestimate the impact of providing cheaper, accessible medication to those in our community that need it. It's not just the individuals who rely on these medications that are beneficiaries; it is their families and communities who also benefit when those in need of medication can access it when they need it.

When we look around the world and we see the sorts of challenges other countries face in meeting the medical needs of their people, we are acutely aware that Australia has built something special with its approach to the Pharmaceutical Benefits Scheme. But it didn't just happen; it had to be fought for. And it was successive generations of Labor governments that made it happen.

The story of the PBS stretches right back to the wartime government of John Curtin. In 1944, Australians were beginning to see the extraordinary power of the new antibiotics, penicillins. Curtin believed these medicines should not be reserved for the wealthy few. He believed they should be available to everyone. It was his successor, Prime Minister Ben Chifley, and his health minister, Arthur Calwell—the man after whom my electorate is named—who took that vision forward. In 1944, Arthur Calwell brought legislation into this parliament to establish a national pharmaceutical benefits scheme, but it was met with fierce resistance. The conservatives of the day cried 'socialised medicine'. The medical profession challenged it in the High Court. The legislation was struck down, but Labor did not give up. In 1946, Australians were asked at a referendum whether the Commonwealth should have the power to legislate for pharmaceutical benefits and other social services. The answer was yes. Australians voted for fairness. They voted for universal healthcare. Even then the road was hard. There were more legal challenges and more delay, and it was not until 1960 that the PBS was finally rolled out in the form we know today.

That is our history—hard fought, hard won and deeply cherished. From Curtin to Chifley and Arthur Calwell to Whitlam, Hawke and Keating, Labor governments have built and defended the PBS, and today the Albanese Labor government is proud to carry that legacy forward. In 2023, Labor delivered the biggest cut in PBS history, lowering the co-payment from $42.50 to $30. In 2025 we froze the co-payment, protecting Australians from inflation, for the first time in 25 years. For pensioners and concession card holders, the cost of PBS medicine is now frozen at $7.70, all the way through to 2030.

This is real relief for families, pensioners and workers in my community of Calwell and right across Australia, and it delivers certainty, alongside the certainty that we will always fight to protect it. Our reforms have a real, tangible, local impact. What matters most is what this means for people in our communities.

In my community, local pharmacist Rayan engages every day with people who live on low incomes, many juggling multiple health conditions. She told my office:

For many in this community, it would be very difficult to afford their healthcare without subsidised medicines. Some are on five or more medications at once. Without the PBS, they wouldn't be able to afford their scripts. That means they wouldn't take their medicines. That means they would end up in hospital.

That's the reality. When medicines are affordable, people simply stay healthy. They don't miss doses. They don't skip scripts. They don't turn up at emergency wards with preventable complications. This is dignity in practice. This is the PBS at work. And Rayan is right: making medicines cheaper doesn't just save families money; it saves our entire health system money, because prevention is always cheaper than responding to crisis.

It is important to be clear: we are talking about the prescriptions people rely on every day for chronic illnesses and life-threatening conditions. Over 1.7 million scripts each year are written for asthma medicines. There are more than 860,000 scripts for Eliquis, which helps prevent strokes. There are those used by thousands for type 2 diabetes, heart failure and chronic kidney disease. There are over one million scripts written annually for the menopause drug Estradiol. This means real practical relief. And there are stories behind every one of these numbers.

Take Taya Purves, who spoke to the ABC. She has cystic fibrosis, a condition that requires multiple prescription medicines to manage, including breakthrough drugs. She said she currently spends more than $240 a month just on scripts. From next year, she will pay only $25 for her life-changing medicine. She described it as a 'welcome relief'. In her words:

It's so refreshing to hear about the cost of something you need to function dropping.

That's what this bill is about: tangible, everyday relief; life-changing, life-extending relief.

Our PBS is a cherished Australian institution. This bill matters because of the accessibility of medicines and the dollars saved but also because of what it says about us as a nation. It is no exaggeration to say that the PBS is a practical expression of the Australian value of egalitarianism. The health of our society can be measured by how we value the health of our people. A basic commitment that every Australian should have access to cheaper medicine that is vital to their wellbeing is a foundation stone of our national character. No matter your wealth, no matter where you live, you deserve access to medicine that keeps you healthy, keeps you working and keeps you with your family.

This is who we are. This is what makes us proud. We have to defend our healthcare system from those opposite and from those abroad, and it is precisely because the PBS is so effective that it is under attack from outside our borders. We now face threats of tariffs on Australian pharmaceuticals, punishing our nation for running a fair and affordable medicine system. The Prime Minister said it plainly: 'The PBS is not for sale.' The health minister has been just as clear: 'We will not negotiate away cheaper medicines.' That's because the PBS is not just a line in a budget; it reflects who we are as Australians. It is an Australian solution built on Australian values, protecting Australian families, and we will defend it.

Beyond the scheme's priorities and central purpose of the health of Australians, there are economic and productivity benefits. Cheaper medicines are not just good for the hip pocket; they are good for our economy. In 2024, the Productivity Commission released research showing that advances in new medicines were directly linked to measurable productivity growth in Australia's healthcare system. We've recently seen productivity grow by about three per cent per year in areas such as cancer, cardiovascular disease, blood and metabolic disorders and kidney and urinary disease. These are areas that together account to one-third of all healthcare expenditure.

The lesson is simple: when Australians get access to the medicines they need, they live healthier, longer and more productive lives. They can work. They can care for their families. They can participate fully in society. That is why cheaper medicines are not just a social good; they are an economic imperative.

This bill is part of a bigger picture of Labor's broader health and cost-of-living agenda. The Albanese Labor government is committed to tackling the cost-of-living crisis head-on. We are making medicine cheaper. We are strengthening Medicare. We are investing in the health workforce through free TAFE and paid practical placements for nursing and midwifery students. We are freezing PBS prices for pensioners through to the end of this decade, and we are ensuring that the foundations of our healthcare system remain strong not just for today's Australians but for generations to come.

The PBS is not perfect. It will continue to evolve as new medicines and new treatments emerge. But it is, without question, one of the most important pillars of our healthcare system. It is a cornerstone of fairness, a cornerstone of dignity and a cornerstone of what it means to live in a healthy, civil society.

This bill reaffirms Labor's commitment to that cornerstone. We are cutting the cost of medicines to $25 a script. We are delivering over $200 million in annual savings. We are defending the PBS from external threats, and we are ensuring that every Australian, no matter their means, has the chance to live a healthy, productive life.

This is Labor's vision for a fairer Australia. It is a vision where your health is not determined by your bank balance, where families in my community and in every suburb and town in this nation can afford the medicines they need and where future generations can look back and say: 'We did not let the PBS be weakened or sold off. We defended it, we strengthened it and we passed it on.' At its heart, the PBS is about the dignity of every Australian, and Labor will always defend that dignity.

10:52 am

Kara Cook (Bonner, Australian Labor Party) Share this | | Hansard source

I rise to speak on the National Health Amendment (Cheaper Medicines) Bill 2025, a vital step in our government's mission to ease cost-of-living pressures and strengthen Medicare for all Australians. This bill is not just about legislation; it's about lives. It's about making sure no-one is left behind when it comes to accessing the medicines they need to stay well, live with dignity and look after the people they love. It's about real people and real families in Bonner and across this country who are being squeezed by the cost of living and are relying on us to make practical, compassionate decisions as a government

Cheaper medicines are a cornerstone of Labor's commitment to strengthening Medicare, right alongside more bulk-billing, more doctors and nurses, more urgent care clinics and more support for the people doing it tough, because we know this: when medicines are affordable, Australians don't delay treatment. They take their medication as prescribed. They stay healthier, they stay out of hospital and they stay in the workforce. It's better for our health system, and it's better for our economy. I saw this firsthand while doorknocking in Lota during the election campaign. I met a mother of three who told me something I haven't forgotten. Her kids had all come down with illness that week. She did the right thing and took them to the doctor, but the clinic no longer bulk-billed. With the out-of-pocket costs from the GP visit and the price of the medications, she found herself facing a decision no parent should ever have to make: 'Do I fill the prescriptions, or do I buy food for the next week?' That's not an isolated story. That's the reality for too many Australians. It is simply not acceptable in a country as prosperous as ours.

This bill is part of our response. Under this legislation, families like hers will save money every time they fill a script. The PBS general co-payment will drop from $31.60 to just $25. That's direct, immediate cost-of-living relief where it's needed most. This is the fifth wave of medicine affordability reform under this government, and it builds on real results. In July 2022, we cut the PBS safety net for concession card holders, delivering 73 million additional free scripts and saving pensioners more than half a billion dollars. In January 2023, we made the largest price cut in PBS history, slashing general script costs from $42.50 to $30, saving Australians $770 million. In September, we introduced 60-day prescriptions for hundreds of common medications, saving patients $250 million and eliminating 35 million unnecessary pharmacy trips. Earlier this year, we froze PBS prices for the first time in 25 years, protecting Australians from the rising cost of inflation. Together, these reforms have already saved Australians $1.5 billion. This bill will add to that, with more than $200 million in additional savings each year.

In Bonner, the difference is already being felt. Locals have saved over $10.5 million across 1.6 million scripts—a clear sign that our policies are working. With this bill, we're going even further, rolling PBS prices back to 2004 levels. This will benefit more than 5.1 million Australians. I know it will mean the world to that mum in Lota and to thousands of other families across my community, from Mount Gravatt to Manly and from Wishart to Wynnum. For her, this isn't politics. It's peace of mind.

The Albanese Labor government is also delivering for women and girls across Australia with bold, long-overdue reforms in women's health. Our $790 million women's health package is about bringing more choice, lower costs and delivering better care. We've listed new contraceptive pills on the PBS for the first time in over 30 years; boosted access to long-acting contraceptives, like IUDs and implants; introduced a new Medicare rebate, starting 1 July next year, for women experiencing menopause and perimenopause; listed three new menopausal hormone therapies after more than 20 years without any additions; invested $127 million in endometriosis and pelvic pain support, with 22 new clinics already operating right across our country; and launched national pharmacy trials to improve access to contraceptives and treatments for uncomplicated UTIs, backed in by $100 million in funding.

These reforms are designed by listening and acting on what women have been asking for for decades. This week, I had the privilege of meeting with Renee, Kate and Jess, long-time women's health advocates from Queensland, representing the Pelvic Pain Foundation of Australia, QENDO and the Australian Coalition for Endometriosis. We discussed the findings of the endometriosis roundtable report and the ongoing barriers facing women with endo and pelvic pain, conditions that affect one in seven Australian women. They're fierce advocates, and I want to thank them publicly for their work. Their voices are shaping policy that truly matters. Their advocacy has helped bring new PBS listings like Slinda, a contraceptive pill now listed for the very first time in our country. Over 100,000 women are expected to benefit from the reduction in contraceptive costs each year—women who, otherwise, could be paying over $250 annually for their contraception.

Closer to home, I want to mention a major local health commitment we made during the election campaign: the brand-new Medicare urgent care clinic in Carindale that Labor is delivering. The tender process is now open, and, when the clinic opens, it will offer bulk-billed, extended-hours care for people who need help urgently, but don't need to spend hours waiting in a hospital emergency department. For families in Bonner, this clinic will mean faster care, lower costs and less stress. Already more than 360,000 Queenslanders have visited a Medicare urgent care clinic. Every week, more than 5,600 Queenslanders are receiving care from one of the 16 clinics across the state, and I can't wait to open our very first Medicare urgent care clinic in Bonner. This is what strengthening Medicare looks like on the ground and in people's lives.

The Pharmaceutical Benefits Scheme is one of our proudest national achievements. It's how we ensure every Australian can access the medicines they need without being priced out of care. The cheaper medicines bill strengthens the PBS, reducing the cost of medications to just $25, making our system fairer, more sustainable and better equipped to meet today's challenges, including the cost of living. But, above all, it makes life a little easier for millions of Australians—for the pensioner in Tingalpa, the single parent in Mount Gravatt East and the working family in Lota. It delivers for the people I represent, and I'm so proud to stand here as the federal member for Bonner and support it.

This is how we strengthen Medicare, this is how we deliver real cost-of-living relief and this is how we build a fairer, healthier Australia, one reform at a time. I commend this bill to the House.

11:01 am

David Moncrieff (Hughes, Australian Labor Party) Share this | | Hansard source

Looking after each other is a key part of what it means to be Australian. It's why Australians are so proud of Medicare, it's why Australians are so proud of the Pharmaceutical Benefits Scheme and it's why I am so proud to support the National Health Amendment (Cheaper Medicines) Bill 2025.

Being able to afford medicines that keep us healthy and well is not something that only the wealthy should be able to afford. When I'm out in my community talking to the hardworking families of southern Sydney, the cost-of-living pressures associated with health care are raised with me all the time. That's why the Albanese Labor government is delivering this key cost-of-living measure.

It will mean that a lot of parents won't have to skip filling their own scripts so that they can afford medicine for their kids. Many older Australians won't have to stretch out doses to make their prescription last longer. There will be fewer Australians with chronic conditions waiting weeks before filling a script because they simply cannot afford it. These are choices that no Australian should have to be making in a modern economy like ours, and under this measure they won't have to.

We have one of the best health systems in the world, but it will only remain strong if we take the required steps to protect it. Strengthening our healthcare system is exactly what the Albanese Labor government was elected to do. This bill cuts the maximum cost of a PBS script for general patients from $31.60 to $25. Those are real savings on the pharmacy bill every month for five million Australians. The last time a script cost $25 was in 2004. If you'd handed me $25 in 2004 I would have taken it straight to the Bosco primary tuckshop and bought 25 Paddle Pops—not all of them chocolate; maybe even a banana one. No-one today would believe that Paddle Pops cost only a dollar each. It was, indeed, a dark day in Australian history when Paddle Pops went up to $1.10.

Paddle Pops aren't the only things that have gone up in price over the last two decades. Medicines have risen significantly too. Before the election, I doorknocked a lot of houses in Wattle Grove and told them what the Albanese Labor government had done to make medicines cheaper and its plans to make those cheaper medicines even cheaper. Now we are delivering on those plans and building on what this government achieved in the last term. This government delivered the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a general script falling to $30 from $42.50. It also provided more free and cheaper medicines sooner, with a 25 per cent reduction in the number of scripts a concessional patient must fill before the PBS safety net kicks in.

This government introduced 60-day prescriptions, saving time and money for millions of Australians with ongoing health conditions and in January 2025 this government froze the cost of PBS medicines, with co-payments not rising with inflation for all Australians for the first time in 25 years. Our cheaper medicines policy has already saved Australians $1.5 billion. In my electorate of Hughes, the savings from cheaper medicines have reached nearly $7.4 million as of July 2025. That's money back in the pockets of residents like those in Wattle Grove and money they're not seeing added to the weekly bill just to fill prescriptions.

Now we're going further. We're reducing the Pharmaceutical Benefits Scheme general patient co-payment from $31.60 to $25 from 1 January next year, delivering on the Albanese government's election commitment. That's 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 PBS medicines will become cheaper because of our government's $689 million investment. 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.

This bill means hundreds of dollars saved each year for households with multiple prescriptions. That is money that goes back to food, bills, school shoes and electricity. That is money making a meaningful difference. In making medicines cheaper in a tangible way, we're helping with cost of living, but it's not just good for the wallets of residents in my community; it's good for their health too. Someone with asthma who needs a preventer, a person managing high blood pressure or a family with diabetes—their scripts are not optional; they are essential. By cutting the costs, we help them stick to their treatment, stay healthier and avoid bigger health problems down the track. The cost of untreated illness is far greater. It shows up in emergency wards, in longer hospital stays, in lost work and in families under stress.

The work that pharmacies do is much more than just as a retailer for medicines. Pharmacists like Ahmad, who runs the local pharmacy in Macquarie Fields, do so much work behind the scenes to keep our community healthy, connected and functioning. I went to see firsthand the work that Ahmad is doing in my community with the member for Dobell, the Assistant Minister for Mental Health and Suicide Prevention and Assistant Minister for Rural and Regional Health. It was so apparent how much our cheaper medicines policies are helping our pharmacists keep our community healthy. When medicines are cheaper, people fill their scripts on time. They take appropriate doses as they are prescribed. The medicines work as they are designed to. They reduce rates of serious illness. That keeps pressure off our GPs and off our hospitals.

On this side of the House, we believe in strengthening our health system. This bill cuts the price of medicines and increases their availability to vulnerable Australians. It eases the squeeze on households and reflects the Australian value that your income should not be the primary determinant of the health treatment that you receive. This government is one that cares about all Australians—about their health and about their financial wellbeing—and that is reflected in this bill. I thank the House.

Photo of Mike FreelanderMike Freelander (Macarthur, Australian Labor Party) Share this | | Hansard source

I thank the member for Hughes. I will remind him that, when I was at primary school, Paddle Pops were sixpence!

11:07 am

Photo of Anne UrquhartAnne Urquhart (Braddon, Australian Labor Party) Share this | | Hansard source

I rise to speak on the National Health Amendment (Cheaper Medicines) Bill 2025. As we know, the Pharmaceutical Benefits Scheme is a pillar of Australian health care. It's life-changing and life-saving for Australians. Each of us benefits from this universal and inclusive scheme. It was the Curtin Labor government that first produced the Pharmaceutical Benefits Act in 1944 to provide free medicines to all Australians. It was the Chifley Labor government that implemented the first PBS, in 1948, providing free medicines for pensioners and a select list of life-saving drugs for the general public. Since then, it has been Labor governments that have built the PBS as a critical part of accessible healthcare for all Australians. We know the task of implementing big nation-building reforms always falls to Labor. It's Labor that is focused on improving social and economic outcomes for workers, families and vulnerable Australians. We're the party of reform, prioritising equity, inclusion and affordability. With this legislation, the Albanese Labor government will make cheaper medicines even cheaper, with a script to cost Australians no more than $25 under the PBS.

This bill implements the government's 2025 election commitments to reduce the PBS general patient co-payment from $31.60 to $25. The last time that PBS medicines cost no more than $25 was, as we have heard many times, in 2004. Labor's health policies are very important to Tasmanians. Tasmania still ranks poorly compared with other Australian states and territories on many health issues. Tasmania has the nation's highest prevalence rates for most chronic conditions, including arthritis, back problems, cancer, osteoporosis, and heart, stroke and vascular disease. Tasmanians deserve better. They deserve better health policies and access to health services. It's crucial that the newly-elected state government take every opportunity to focus on improving health outcomes for our communities.

The federal government is focused on that task and playing its part. In 2025-26, the Australian government will deliver $750 million in funding to Tasmanian state-run public hospitals. That's an additional $93 million, or a 14 per cent increase in federal funding. A further $120 million in federal funding will go towards the Northern Heart Centre at the Launceston General Hospital. We've also funded additional aged-care beds, birthing services and hospice care, and, for every Tasmanian, we are strengthening Medicare and expanding bulk-billing. This is so important because bulk-billing rates in Tasmania have been lower than in the rest of Australia. But we are turning that around; we are seeing that percentage increase. We are also putting in place programs that deliver more doctors, more nurses and more endorsed midwives into our health system.

Of course we have delivered, in Tasmania, five very successful Medicare urgent care clinics, and there are more to come. In Devonport, in my electorate of Braddon, the Medicare urgent care centre has delivered over 25,000 bulk-billed consultations, and over 100,000 bulk-billed Medicare urgent care clinic consultations have been delivered right across the state. That is astounding. Tenders have now opened for three new Tasmanian Medicare urgent care clinics, including one in Burnie, which is also in my electorate, and I really look forward to that tender being awarded and that urgent care clinic becoming operational to provide that service at the other end of the coast from where that Devonport one is.

Now, having already slashed the cost of medicines during our first term of government, we are going even further. We've already delivered more free and cheaper medicines sooner, with a 25 per cent reduction in the number of scripts that a patient must fill before the PBS safety net kicks in; the largest cut to the cost of medicines in the history of the PBS, with the maximum cost of a script falling to $30 from $42.50; 60-day prescriptions, saving time and money for millions of Australians with an ongoing health condition—and that has been a real game changer for many people in my community; a freeze on the cost of PBS medicines, with co-payments not rising with inflation, for all Australians for the first time in 25 years, and a five-year freeze on the cost of PBS medicines for pensioners and other Commonwealth concession card holders, so that, if you have a concession card, the most you will pay is $7.70.

Making medicines cheaper is not just good for your health; it's a tangible way that we are helping with the cost of living, and this will help many thousands of people that I represent in my home state of Tasmania. The federal government's cheaper medicines policies have already delivered over $40 million in savings for Tasmanians and over $8 million to the residents of my electorate of Braddon.

With the bill before us today, these savings will grow. Four out of five PBS medicines will become cheaper from 1 July 2026, which will save Australians over $200 million each year. That is a real, tangible help to the budgets of all Australians. This bill makes it clear: Labor will always stand up for the PBS and for affordable, accessible, universal Australian health care.

11:14 am

Trish Cook (Bullwinkel, Australian Labor Party) Share this | | Hansard source

I rise to speak on the National Health Amendment (Cheaper Medicines) Bill 2025. On 22 July, I walked into Parliament House for the official opening of the 48th Parliament. It was a very proud moment to be the 10th nurse and the fourth midwife in parliament and the very first federal member for Bullwinkel. It's a seat named after nurse Lieutenant Colonel Vivian Bullwinkel, World War II hero and the sole survivor of the terrible 1942 Bangka Island massacre. A few days later, I experienced yet another proud moment, voting yes to make medicines cheaper.

From 1 January next year, no Australian will pay more than $25 for a prescription on the PBS. Think about that for a moment. The last time medicines were this affordable was more than 20 years ago, in 2004. That is not just numbers on the page; it's a real, tangible cost-of-living measure that will make a difference in people's lives. We already delivered the largest cut to the cost of medicines in the history of the PBS in 2023 and now we are going even further. For the average household, this is a 20 per cent cut in the maximum cost of PBS medicines, saving Australians more than $200 million a year.

I know from my own life just how important this is. I became a nurse when I was just 18 years old, following in my mother's footsteps. Being a nurse, you very quickly learn that access to affordable medicine can mean the difference between someone getting better and somebody ending up in hospital. I've seen what happens when people skip doses because the cost is too high. Remember that, for many people requiring medicines, especially for chronic diseases, they are often on more than one medication at the same time—many medications in some cases. That's why cheaper medicines aren't just good for the hip pocket; they're good for health. When I'm out doorknocking and speaking with people in my community in the Bullwinkel electorate, this is one of the issues that comes up again and again. People have told me that they are grateful when medicines become affordable and that this will make a big difference to their bottom line. For pensioners and concession card holders we also know that money can be tight, and that's why we have frozen the cost of PBS medicines at $7.70 until the year 2030—no rises, no surprises, just certainty.

This builds on action we have already taken to ease pressure. In July 2022, we reduced by 25 per cent the number of scripts a concessional patient needs before the PBS safety net kicks in. In January 2023, we cut down the maximum cost of a general script from $42.50 to $30, the biggest cut in PBS history. In September last year, we rolled out 60-day prescriptions, saving time and money for people with ongoing health conditions. From January 2025, for the first time in 25 years, PBS co-payments won't rise with inflation. Importantly, all medicines that pharmacies can discount today will still be able to be discounted when the new $25 co-payment comes into effect.

This was a clear and consistent commitment from our government when we said we would make medicines cheaper and health more accessible and affordable, and that's exactly what we are doing. The Prime Minister, Mr Albanese, said it best: 'The size of your bank balance shouldn't determine the quality of your health care.' That's what this is all about—making sure every Australian, no matter who they are or what they earn, can afford medicines that they need. I am proud to stand here as the Bullwinkel representative but also someone who's worked in health care since they were a teenager. I know the difference that this will make to people's lives. The Albanese government is delivering real cost-of-living relief, not just words, and, as I've indicated, commitment and action. With this legislation, we are making medicines cheaper than they have been for two decades. We are building a fairer, healthy Australia together.

This is also in addition to our Medicare urgent care clinics. In the Albanese government's first term, one of their commitments was to build 50 Medicare urgent care clinics where people can just walk in without a referral or a credit card and get quality, accessible health care. We said we would deliver 50 in that first term, and we overdelivered by providing 87 clinics across Australia. Two of those clinics service the people of Bullwinkel. There's one in Gosnells and one in North Midland, both on the border of the electorate. Thanks to the Labor government, one of the new commitments, when we build another 50 around the country, will be in the Bullwinkel electorate—my commitment to a Medicare urgent care clinic in Kalamunda. We are working consistently to provide better, more accessible and more affordable health care for people.

11:20 am

Photo of Justine ElliotJustine Elliot (Richmond, Australian Labor Party) Share this | | Hansard source

I, too, rise to speak in support of the National Health Amendment (Cheaper Medicines) Bill 2025. The bill amends the National Health Act 1953 to cut the maximum cost of PBS medicines by 20 per cent from $31.60 to $25. It was a Labor government that created the PBS so that every Australian could afford the medicine that they needed. Now, the Albanese Labor government is continuing that legacy, strengthening and protecting the PBS for future generations. Without the PBS, many medicines would cost hundreds, even thousands, per prescription, which would make access to vital medications difficult, if not impossible, for so many Australians.

We know that, for so many people, the cost of medicines is a major contributor to cost-of-living pressures, but delaying or foregoing medication due to cost can lead to worsening health conditions, more complex treatment and higher long-term healthcare costs. This bill is the latest in a series of cost-of-living measures delivered by our government to make medicines even more affordable. It fulfils our 2025 election commitment to reduce the PBS general patient co-payment. From 1 January 2026, all Australians with a Medicare card will pay no more than $25 for PBS medicines. This change will benefit around 5.1 million Australians, delivering immediate relief at the pharmacy counter. Our government's committed to cheaper medicines, a stronger Medicare, more bulk-billing, more doctors and nurses, and more urgent care clinics.

In 2022, we reduced the PBS safety net threshold, cutting the number of scripts concessional patients need before qualifying for free or discounted medicines by 25 per cent. This reform has saved patients over $535 million, with 73 million additional free scripts issued. In 2023, we made the largest cut to medicine costs in PBS history, reducing the general patient co-payment from $42.50 to $30, a 30 per cent reduction that saved patients over $755 million. We also introduced 60-day prescriptions for chronic conditions, which allowed patients to receive double the medication per script, saving time and money and easing the pressure on doctors and pharmacists. This reform saved Australians more than $245 million.

Earlier this year, we froze the cost of PBS medicines for pension and concession card holders so that medicine prices would stay at a maximum $7.70. For my electorate, and the older Australians there, this has made a huge difference in terms of addressing their health needs. For non-concession-card-holders, the cost was frozen at a maximum price of $31.60 until the end of 2025. Already, this reform has led to an estimated $11 million in savings for concessional patients and $15 million for non-concessional patients. Together, these reforms have saved Australians $1.5 billion in medicine costs—a huge amount. In my electorate, patients have saved more than $9.7 million. Now, we're going even further. Cheaper medicines mean immediate cost-of-living relief for everybody. They're good for your health, good for household budgets and good for our health system overall.

The measures in this bill are expected to save Australians over $200 million each year. From 1 January 2026, PBS medicines will become even cheaper. The last time that PBS medicines cost just $25 was more than 20 years ago. Of course, the PBS is a cornerstone of Medicare, ensuring timely and affordable access to high-quality, cost-effective medicines. When people get the medicines they need when they need them, we see much better health outcomes and reduced pressures on our hospitals and other health services. Affordable medicines are so important, too, for supporting school attendance, workforce participation, family care responsibilities and boosting productivity. They're a win-win for everyone.

There are over 900 medicines listed on the PBS, including more than 5,000 different brands. Without the PBS, Australians would be paying the full retail cost to access the medicines they need, and this cost would then be determined by drug makers and pharmacies. From 1 July 2023 to 30 June 2024, over 226 million subsidised prescriptions were dispensed under the PBS. The average cost per patient for prescriptions would be more than $85 without this important government subsidy. Indeed, one of the world's most expensive drugs, Zolgensma, treats spinal muscular atrophy, a rare genetic disorder that involves loss of motor neurons in the spinal cord and causes progressive muscle weakness. Prior to PBS listing, this drug could be purchased for $3 million; it can now be accessed for the standard co-payment amount. Another drug, encorafenib, used to treat melanomas and other cancers, has a retail price of $7,035.45 without the government subsidy. It's a huge difference. Another drug, nivolumab, is an immunotherapy treatment for various forms of cancer. Without the government subsidy, it would cost more than $9,560. It is astounding the difference it will make. Another drug, Doxorubicin hydrochloride, a common and highly effective chemotherapy drug, would have a price of $750.37 without the subsidy. Another one, infliximab, is a commonly accessed drug that treats autoimmune conditions such as rheumatoid arthritis, Crohn's disease and psoriasis. Without the government subsidy, this would cost between $578.68 and $760.24, depending upon the mode of injection. So, without the PBS, access to many life-saving and life-changing drugs would simply not be possible for the vast majority of Australians.

The PBS is such a significant component of the government's investment in our healthcare system. We're committed to ensuring that new medicines can be added and listed on the PBS so that Australians can continue to benefit from access to the highest-quality medicines and so that the pharmaceutical market stays sustainable and competitive. We're also committed to continued investment in other essential healthcare services, including bulk-billing. Access to health care and cheaper medicines is vitally important to every single Australian, and this bill builds on the work of the Albanese Labor government and what we are already doing to improve access to health care in my community on the far north coast of New South Wales.

Prior to the recent election, I made a commitment that, if the Albanese Labor government were re-elected, we'd deliver a Medicare urgent care clinic in the Tweed region where all you will need is your Medicare card, not your credit card. At the new urgent care clinic, locals will be able to access free urgent care when they need fully bulk-billed treatments without waiting for hours in a busy hospital emergency department. This urgent care clinic will make a huge difference to the people of the far north coast.

Recent data has shown us that over 22 per cent of presentations to urgent care clinics in New South Wales have occurred outside normal business hours. That's when people do require that treatment. Over one in four visits take place on the weekend and one in four visits involve treating a young person under the age of 15. This is a very clear indication that the Medicare urgent care clinics are vitally and crucially filling a gap in providing services outside of standard hours and over the weekend. These clinics are giving families in New South Wales—and, indeed, right across the country—timely access to bulk-billed health care and to peace of mind, knowing that help is always there and available. And, of course, it will take pressure off our hospitals as well.

We're also delivering access to a free walk-in mental health care clinic for locals with the Medicare mental health centre in Tweed. This is, again, another election commitment of this government that I'm proud to be a part of that I'm proud to be delivering on. The Medicare mental health centre will be open for extended hours, with no appointment or referral needed. Just walk in—no appointment, no referral—to get the mental health care that you need. You can walk in and get that from this centre. I know other centres around the country are providing vital support for people. That mental health centre will be staffed by qualified mental health professionals, including social workers, nurses and peer support workers. The centre will provide immediate relief for people in distress, as well as ongoing care for those with more complex mental health needs.

Earlier this year, we expanded access to mental health support for young people in my region by opening a new headspace in Ballina. Headspaces are incredibly important for young people to feel comfortable about accessing the health care they need. We have one in Tweed, and I know they do a remarkable job of providing support. That one in Ballina was indeed very much needed, and I was very proud to open that earlier this year.

We're also making MRI scans more affordable and delivering health services to support those experiencing homelessness on the north coast.

Another very important measure that we the Albanese Labor government took was to reclassify the town of Murwillumbah from 'metropolitan' to 'regional' for healthcare services. We reversed the Liberals and Nationals' absurd decision to classify Murwillumbah as a city. I don't know if you've been to Murwillumbah, but it's not a city; it's a regional town. That, of course, had a huge impact upon their capacity to bulk-bill; it was less. Their capacity to attract doctors was unheard of. They couldn't do that because they were classified as a city. I really want to congratulate everyone, particularly in Murwillumbah. This is a community victory. They made their voices heard. We heard them. Labor listen and Labor act, and we changed that classification.

It's making a real difference for locals. There are GPs, like the ones at Wollumbin Medical Centre in Murwillumbah, that are now universally bulk-billing patients. I know that many other practices have started a lot more bulk-billing as well, particularly of pensioners and concession card holders who just could not get to the doctor because of the way the Liberals and Nationals had classified Murwillumbah. They can now, and that's great. I hear from many of the GP practices as well that they've had a lot of interest from doctors who want to move there now that they can access more incentives.

Recently, I was really pleased to visit the Wollumbin Medical Centre to celebrate this good news about them universally bulk-billing everyone. They've told me they can do that now because the Albanese Labor government reclassified Murwillumbah as regional and also because of our increases to bulk-billing incentives that come in from 1 November 2025. It is a perfect example of a government listening and acting, and how our really strong policies in terms of accessing health care are making a difference to regional Australians who quite often have had difficulty accessing health care. But we're making sure that, across the country, people have more services when they need them.

As I say, our government is committed to strengthening Medicare by making PBS medicines even cheaper, increasing bulk-billing incentives, opening up Medicare urgent care clinics—like the one we'll have in Tweed Heads—and growing our health workforce to deliver more doctors and nurses, which we very much need on the ground.

We're also investing in women's and men's health initiatives. We're opening more endometriosis and pelvic pain clinics. We're investing in a lot more free mental health support. We're also establishing 1800MEDICARE, a free 24/7 health advice line that people can access.

Of course, if we look at all of those actions by our government, the Albanese Labor government, the contrast with the Liberals' and Nationals' record on Medicare and the PBS is crystal clear. They cut $50 billion from our hospitals, which, quite frankly, was catastrophic in terms of the capacity to deliver health services. It had a huge impact. Disgracefully, they froze the Medicare rebate—and they made it more expensive to see a doctor by freezing that rebate. They planned to increase the cost of PBS medicines as well. They voted against making PBS medicines cheaper. They've described our urgent care clinics as 'wasteful spending'. This is absolutely absurd.

Our initiatives are game changers. People know that Labor is committed to delivering and strengthening Medicare. They know that when it comes to the Liberals and Nationals—when the former opposition leader was health minister, there were all the cuts he made, and he said that not everything can be free. The impact that his cuts had right across the board is absurd. They were very severe across the country but more so, again, in our regional and rural areas, where there often are impediments to getting health care. People in my region suffered for many years—the nine years the Liberals and Nationals were in government—from the consistent cuts, at every turn, to health care.

It is a big job, and our government has been working extremely hard. I want to acknowledge the incredible work of our health minister in his commitment to strengthening Medicare, and we are seeing the result on the ground now. We know there's a lot to do, but with all those changes we have made a massive difference to people across the country and particularly in my region. Locals in my community on the far north coast know you can only count on Labor to strengthen Medicare and improve the PBS. I commend the bill to the House.

11:35 am

Photo of Peter KhalilPeter Khalil (Wills, Australian Labor Party, Assistant Minister for Defence) Share this | | Hansard source

I also rise in support of Labor's National Health Amendment (Cheaper Medicines) Bill 2025, which will freeze the price of PBS medicines at just $25. It's a remarkable thing, because it's so important. Why is this so important for the community? Apart from the fact that there are so many cost-of-living pressures that people are facing, this type of support, through medicines, is critical to people's lives and their health care. It's fundamental.

We on this side are proud to be the party and the government that stand by working Australians. Under the Labor government, no-one will have to choose between putting food on the table and paying for the medicine that they need to stay healthy. It's fundamental. The bill delivers on our election commitment to make cheaper medicines even cheaper by reducing the price of PBS medicines from $31.60 to just $25. That's a whopping 20 per cent cut in the maximum cost of PBS medicines, which will save Australians over $200 million each year.

To put this in perspective, the last time PBS medicines were this price was over 20 years ago. That's 2004. Back in 2004—I don't know where you were, Deputy Speaker Young—I remember I had a full head of hair, and I was rocking out to Pearl Jam. I think that was the band of the time. Member for Lyons, do you remember where you were in 2004?

Rebecca White (Lyons, Australian Labor Party, Assistant Minister for Women) Share this | | Hansard source

You don't want to know!

Photo of Peter KhalilPeter Khalil (Wills, Australian Labor Party, Assistant Minister for Defence) Share this | | Hansard source

I don't want to know! The member for Wannon was probably wandering around, listening to rock music or something like that. It was a long time ago, 2004. I can tell you times have changed a lot. We don't want to, necessarily, roll back the clock. I don't think the member for Lyons, the member for Wannon or I want to roll back the clock; we enjoyed the experiences we had in the last 20 years. But guess what we do want to roll back the clock on? PBS medicines. That's what we want to roll the clock back on. We could be in a time machine here in this parliament. We could go back in time to the cost of PBS medicines back in 2004. Isn't that amazing? Jules Verne would be very proud of us here at the Australian parliament. So we're setting the price of PBS medicines to a figure of $25. We remember, but some people might not have even been born in 2004.

In all seriousness, since we formed government, Labor have provided Australians with the largest cut to PBS medicine prices in the history of the PBS. Thanks to our $689 million investment into the PBS, we have brought down the cost of medicines from $42.50 in January 2023 to just $25 by the beginning of next year. That's remarkable. Making cheaper medicines even cheaper is our way of providing real solutions—real outcomes—to easing the cost-of-living pressures felt by all Australians.

Unlike those who sit across from us, we are delivering on our promise to bring down the cost of medicines. It doesn't matter whether you live in metropolitan cities or the most rural areas of our vast country; you too will be able to afford the medicines you need most when you need them.

I've been doorknocking around my electorate of Wills a fair bit, even after the election as well, just saying g'day to constituents. I've heard firsthand how cost-of-living pressures are affecting my constituents. On the doors, I met with a woman, a mum of four, by the name of Lucinda. Lucinda described to me how her son had recently been diagnosed with epilepsy and that she had had to decrease her hours at work to care for her son. She made the choice to look after her child, which meant less work. Now that the joint income of her family has decreased, the family is feeling the pressure of the cost of living even more. Luckily for Lucinda's family, her son's epilepsy medication is one that is listed on the PBS, meaning that they will have to pay only $25 from the beginning of next year, down from $42.50. The time machine is working. To put it into perspective, the same medication in the US without health insurance would be—I don't know if anyone wants hazard a guess here?

Kara Cook (Bonner, Australian Labor Party) Share this | | Hansard source

A hundred!

Photo of Peter KhalilPeter Khalil (Wills, Australian Labor Party, Assistant Minister for Defence) Share this | | Hansard source

I heard a hundred. It's actually $968. If ever we needed proof about the brilliance and importance of the PBS as something that's critical to our healthcare system in Australia, there it is. Thanks to the Albanese Labor government's massive investment into the PBS, families like Lucinda's will have certainty around the cost of medication moving forward.

I also met on another occasion a retiree by the name of Alex. In Alex's older years, he's developed high blood pressure. High blood pressure actually affects about 42 per cent of Australians over the age of 75. If Alex was living in the US and his blood pressure went up, and it would go up because of the politics there, his high blood pressure medication would cost—I'm going to try asking again. Does anyone know how much this would cost him in the US?

Photo of Alison ByrnesAlison Byrnes (Cunningham, Australian Labor Party) Share this | | Hansard source

One thousand!

Photo of Peter KhalilPeter Khalil (Wills, Australian Labor Party, Assistant Minister for Defence) Share this | | Hansard source

It's $631. You were close, and that's without health insurance. In Australia, this medication on the PBS will only cost Alex $25. You know where this is going. For pensioners like Alex, it costs even less. Guess what. It's not actually $25 for Alex. We got it wrong! Alex, because he is a pensioner, he will have his medication frozen at only $7.70 until 2030. That's much better than $631, isn't it?

Lucky for Alex, he doesn't need to afford health insurance to pay for his medicines, because in this country, in Australia, Medicare is for all. It is for all Australians. This is why the Australian people are so passionately committed to Medicare. It is something that is iconic. Those on the opposition benches just love criticising the PM when he pulls out his Medicare card and so on. But guess what. The Australian people know the importance of that card. When they see that card, they understand what it means for them, their families and their health care. This is why it's so important and we're so committed to it.

We will continue to make sure affordable medicines are available for those who need them most. This is why the Labor Party is the party for all Australians. There is real, tangible relief for every Australian who is deciding what scripts they can refill this week. This relief comes through these reductions. We will continue to ensure that no-one has to decide between their health or putting food on the table. Frankly, that should not be a choice that Lucinda, Alex or any Australian should have to make. While the opposition talk a lot, on this side of the House, we, the government, deliver. This is what this second term is about: delivering on our election commitments to the Australian people on the things that matter to them and will give them a better life. This is one of those commitments that we are meeting. We are making medicines more affordable for every Australian.

We haven't just cut the cost of PBS scripts to $25; that's just one great thing. This amendment is just another piece in the bigger part of our commitment to delivering cost-of-living relief through cheaper medicines. As a government, we have already provided a 25 per cent cut to the number of scripts a concession patient must fill before the PBS safety net kicks in. We've already established 60-day prescriptions, saving time and money for millions of Australians, and, for the first time in 25 years, we've frozen the cost of PBS medicines, ensuring co-payments will not rise with inflation. Thanks to the Albanese Labor government, the cheaper medicines policy in my own electorate of Wills—and I'm sure this is probably replicated in the electorate of Lyons and all of the other electorates represented in the chamber—has already saved over $9 million for the people in my community. That's what Labor does. That's what we do. That's what we're here for. It's to deliver on our promises to make sure health care is a right for all and not just a privilege for some. We're always going to fight for a fairer, healthier Australia. This bill is a practical, compassionate and economically responsible bill. I commend it to the House.

11:44 am

Ash Ambihaipahar (Barton, Australian Labor Party) Share this | | Hansard source

I rise today to speak in strong support of the National Health Amendment (Cheaper Medicines) Bill 2025. This is not just a piece of legislation. It is, absolutely, a lifeline for millions of Australians. It goes to the heart of what we stand for as a Labor government: fairness, dignity and health equity.

When I stood up in parliament for the first time, I used some of my speech to reflect on the history of the seat of Barton and its namesake. Barton is home to working families juggling bills, pensioners who've contributed a lifetime to this country, and migrants and multicultural communities who often face higher health burdens. One thing I hear from them constantly is that the cost of medicines matters to them.

During my time at St Vincent de Paul Society New South Wales I was looking after a broad area of New South Wales, with an amazing team of staff and volunteers, running Vinnies support centres and vans and also talking directly with my community. Many people make impossible choices, between paying for medication or paying their electricity bill, between putting food on the table and buying asthma medication for children. I think of a young mother from Hurstville who skips her own medication so she can afford antibiotics when her child gets sick or the pensioner from Beverly Hills who told me she would space out her medication, by taking it every second day instead of daily, just to manage her expenses.

We cannot ignore the pressures Australian households are under. The cost of living is front and centre in every conversation around the kitchen table, and healthcare costs—in particular, the cost of medicines—are one of the sharpest pain points for my community in Barton. No Australian should have to gamble with their health because of the cost of medicine.

This bill is about ending those impossible choices and restoring dignity to Australians. We have changed for the better as a nation and the St George area is a proud reflection of the vibrant and multicultural society we call home. But there are some things that have remained the same, and we should be very proud of them too. Labor's commitment to affordable, equitable health care is one of these things. Medicare is truly Australian. The little green card represents the right that everyone has to see a doctor and access medicine when we need it. Health care should never be about your bank account balance, your postcode, your gender or your ethnicity. You have a right to it because you're Australian, and that right is something our Labor government will always fight to protect.

In the last term, the Albanese Labor government took up that fight after years of coalition neglect. We introduced brand new policies that have saved Barton residents a total of $10,957,676. I'm going to say that again—$10,957,676. Those savings were delivered in the middle of a cost-of-living crisis, too. The government was able to balance the budget, deliver real relief and begin rebuilding affordable health care. They did this through introducing new and innovative policies.

One example in Barton is the Carlton Urgent Care Clinic. For those watching online, don't forget that the urgent care clinic is at 354 Railway Parade, Carlton. It's open seven days a week, from 8 am to 8 pm, and all you need is your Medicare card, not your credit card.

Another example is 60-day prescriptions, and another is slashing co-payments. Let me tell you—doorknocking on those policies couldn't have been easier. Locals knew about them, were benefitting from them and were keen to talk about them. Remember the young mother and the pensioner? They're real people. I met one of them on their doorstep and the other one while I was working at St Vincent de Paul. This change will flow through the rest of their lives, not only benefitting their health but freeing up their budgets. Others had taken their kids to the UCC after a bad fall at soccer, or their local pharmacist had given them a 60-day script for blood pressure tablets or diabetes tablets.

Another thing I'm proud of is the advances we've made in treating endometriosis. We added new PBS listings for endometriosis and related reproductive health needs. Again, this slashes the everyday cost for women living with such a common but overlooked illness. We also expanded Medicare supports so that consultations are cheaper and established the first endometriosis and pelvic pain clinics. These clinics create a dedicated space for women to receive a diagnosis, talk to a trusted health professional and receive local support. I would love to see such a clinic in south-west Sydney, should this project expand. Regardless, all of these changes are real and are already helping women across Barton.

When I met them during the campaign, these families trusted that Labor would continue to prioritise their health—and that is exactly what we're doing. The cheaper medicines bill implements the Albanese government's 2025 election commitment to reduce the Pharmaceutical Benefits Scheme general patient co-payment, again, from $31.60 to $25. The last time medicines were this cheap was in 2004! That was my last year of high school at Danebank. I was living in Hurstville and didn't have a licence. Me and my mates were trying to go and watch the film Mean Girls at Hurstville Westfield. Do you remember that?

Kara Cook (Bonner, Australian Labor Party) Share this | | Hansard source

I do!

Ash Ambihaipahar (Barton, Australian Labor Party) Share this | | Hansard source

Trent Barrett was the Dragons captain, and on 29 August the team pulled off one of the biggest comebacks in the club's history to beat Manly 36-34 at Kogarah. And we'll beat them again this weekend! Just like in 2004, medicines are going to cost 25 bucks.

I live in Beverley Park. I have a car licence and I'm, pretty much, bingeing on Netflix on the couch rather than going to the cinema. Regardless of what happens at Kogarah this weekend, one thing remains the same: Labor are still committed to health care. We're still committed to the St George area and we're delivering on $25 for PBS medicines.

I'm glad the coalition matched this commitment. This is a national issue that we should always agree on. Affordable, accessible health care is uniquely Australian and so it makes sense that both major parties want to see these changes pass. I only hope that the next time we present changes like this we'll see the same support. Let me be clear. This is not just a health policy, it is a social justice policy. Cheaper medicines mean more than just relief at the counter. They mean people actually taking their medicines as prescribed. That means fewer preventable hospitalisations. It means fewer emergency presentations. It means a healthier population, which is good for patients and good for our health system.

It also is good for our economy. Every dollar we put into making medicines cheaper pays itself back many times over, because it prevents bigger, costlier interventions down the track. It is the most vulnerable Australians who benefit most—pensioners in Earlwood, families in Rockdale, young people in Kogarah—who work two jobs to keep food on the table. For them, $10 or $20 in savings at the pharmacy isn't trivial; it's the difference between financial stress and financial survival.

That's what this bill is about. It's about giving people dignity. This bill is not just about dollars and cents, it's about lives. Labor will always fight for the right to good health care and will always champion Medicare, and we'll always stand for cheaper medicines. I urge every member of this House to support this bill because, in a country as wealthy as Australia, no-one should ever have to choose between their health and their grocery bills.

11:54 am

Photo of Matt ThistlethwaiteMatt Thistlethwaite (Kingsford Smith, Australian Labor Party, Assistant Minister for Immigration) Share this | | Hansard source

The laser-like focus of the Albanese government over the past three years has been on providing cost-of-living relief for all Australians, and this National Health Amendment (Cheaper Medicines) Bill 2025 delivers on a commitment that we made, in the lead-up to the last election, to make medicines even cheaper for all Australians. We know that, for many, the cost of health care can be a big impost on their household budget, and this bill is designed to ensure that, in particular, pensioners, seniors and people with chronic health conditions get the support that they deserve from the government with the cost of their medication.

We already slashed the cost of medicines with, in 2023, the largest cut to the cost of medicines in the history of the PBS. We're now going even further with this bill. The National Health Amendment (Cheaper Medicines) Bill 2025 will mean prescriptions on the Pharmaceutical Benefits Scheme, or the PBS, will cost Australians no more than $25 from 1 January next year. This is a more than 20 per cent cut to the maximum cost of PBS medicines, which will save Australians over $200 million each year. The last time that PBS medicines cost no more than $25 was back in 2004—21 years ago. It means that pensioners and concession card holders will continue to benefit from the freeze to the cost of PBS medicines, with the cost frozen at a level of $7.70 until 2030. That's another key cost-of-living measure delivered by the Albanese government.

I mentioned earlier that our focus has been on the cost of living, but it's also been to support all Australians—not some Australians but all Australians. If you're a worker, you benefited from a tax cut and the energy bill rebate. If you're a student, you benefited from the cuts to HECS, the introduction of a prac payment, fee-free TAFE and other supports. If you're a pensioner or a senior in our community, you're benefitting from this as well as the energy bill relief that was provided by the rebate. Making medicines cheaper is a tangible way to really help people with their cost of living, particularly those who have some chronic health conditions that require medications on a weekly basis. These changes will make a big difference to household budgets, and, importantly, they won't add to inflation. That was the brief that we gave to the Department of the Treasury when we were formulating our cost-of-living relief: it can't add to inflation. The success is in the fact that inflation has fallen back down to the RBA's target band of two to three per cent both in headline and in real figures.

This builds on the action that we're taking to deliver cost-of-living relief in health care more generally. In 2022, we delivered a greater range of free and cheaper medicines with a 25 per cent reduction in the number of scripts a concessional patient can fill before the PBS safety net kicks in. In January 2023, there was the largest cut to the cost of medicines in the history of the PBS, down to $30 from $42.50. In September 2023, 60-day prescriptions were introduced, saving time and money for millions of Australians with an ongoing health condition. In January this year, we froze the cost of PBS medicines, with co-payments not rising with inflation for all Australians for the first time in 20 years. Our reforms have made a big difference in the community that I represent, with $11 million saved on medicines for people in Kingsford Smith.

This bill includes further specific provisions to protect the availability of discounting. All medicines that pharmacies can discount today can continue to be discounted once the co-payment is cut to $25. It also builds on the reforms that we're making to Medicare more broadly. The increase in the rebate, particularly for pensioners and children, has ensured that there's more access to bulk-billing, and now we're extending that bulk-billing incentive to the rest of the population, so there'll be more incentive for GPs to bulk-bill their patients and more incentive for practices to ensure that all their GPs bulk-bill. That's why we continue to add new and expanded PBS listings to help support Australians who are facing severe health conditions. These new medicines on the expanded PBS bring real relief to Australians who are facing severe health conditions, including those with Parkinson's disease, neuroblastoma, endometrial cancer, cystic fibrosis and melanoma.

So we are delivering on our commitment to make medicines cheaper so that all Australians benefit. Couple that with the decreases that we've already made to medicines and the fact that we're expanding Medicare—it's a good deal for more Australians, to help them with their cost of living.

Much as I know you'd love to hear me continue to speak about the benefits of cheaper medicines, Deputy Speaker, I note that the Minister for Housing is in the chamber and it's now time for her parliamentary statement.

Debate adjourned.