Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. The cost of living is continuing to hit many Australians hard, despite moderating inflation. People are often raising the pressure on their household budgets with me as I am out and about in South Australia. The Albanese Labor government hasn't wasted a day in implementing promises it made at the election, many of which were designed to reduce pressure on Australians in a higher-than-normal cost-of-living environment. Can the minister explain how the Albanese Labor government's policies have been providing targeted cost-of-living relief, particularly with respect to the cost of medicines?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Smith for the question and for the work she's doing representing the good people of South Australia. We have been rolling out a carefully calibrated range of measures to fight inflation but also to assist Australians with the cost of living over the past 16 months. The government's cost-of-living package provides assistance with rent, with energy bills, with more affordable child care and with fee-free TAFE. But, in addition to all of these important investments, there's another area where we are already seeing very tangible results by reducing the cost-of-living pressures for Australian households, and that is in relation to cheaper medicines. In the first six months of the Labor government's cheaper medicines policy, we have seen Australians collectively save $138 million from 12 million cheaper scripts. That's $138 million that is going back into people's pockets. Before the election, we promised to reduce the maximum co-payment under the PBS from $42.50 to a maximum of $30. That's a reduction of 29 per cent. Those cost-savings are now a reality for Australians who are purchasing their medicine, and the proof is in the numbers. In the ACT, $3½ million has been saved. In New South Wales, it's $43 million. In the Northern Territory, $885,000 has been saved. In Queensland, $27 million has been saved. In South Australia, $9 million has been saved across 805,000 cheaper scripts in your state, Senator Smith. In Tasmania, $3 million has been saved on 260,000 cheaper scripts.

Opposition Senators:

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order!

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In Victoria, $36 million has been saved on 3.2 million cheaper scripts and, in WA, $16 million has been saved on 1.4 million cheaper scripts. We took this to the election. We said we would make medicines cheaper and that it would make a material difference, and it is.

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order! Just a moment, Senator Smith. Order on my left. I should not have to call order two or three times. Senator Smith, a first supplementary?

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

Last Friday, the government's changes to 60-day dispensing at pharmacies came into effect, meaning that Australians with a broad range of conditions that will require regular medications will pay less for their scripts.

Opposition Senators:

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Senator Smith, please resume your seat. Order on my left! Senator Hughes and Senator Ruston! Senator Smith, please continue.

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

Do I start again?

Sue Lines (President) Share this | Link to this | Hansard source

Yes. The minister is asking yes.

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

Last Friday, the government's changes to 60-day dispensing at pharmacies came into effect, meaning that Australians with a broad range of conditions that will require regular medications will pay less for their scripts. It's reassuring to hear that the cheaper medicines changes implemented in January have already saved Australians millions of dollars. How will the changes to dispensing rules save millions of Australians even more on their medicines at a time when the cost of living is continuing to add pressure to household budgets?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Smith for the question. Building on the significant savings already being experienced by Australians from the cheaper medicines that I just spoke about, last Friday saw the beginning of the 60-day dispensing changes. These are important changes; they will mean even more savings for four million patients who are on about 100 common medicines for ongoing health conditions like high blood pressure, high cholesterol, heart disease, osteoporosis and a range of other conditions. These individuals will now be able to get a 60-day script with the agreement of the doctor—and only in that circumstance—which means two scripts for the price of one, halving the cost of their medicine, relieving pressure on the health system and resulting in far fewer visits to the doctor and the pharmacy. We are looking forward to working with pharmacies through the next pharmacy agreement, which we are currently negotiating. It is good to have government and pharmacy back at the table working together.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Smith, a second supplementary question?

Marielle Smith (SA, Australian Labor Party) Share this | Link to this | Hansard source

Australians who are still paying higher than normal prices for everyday costs like petrol, groceries and energy bills want to see a continued effort from government to reduce the cost of living. What else is the government doing which will deliver tangible results when it comes to reducing pressure on the hip pockets of Australians, and can the Minister explain how Australians are better off under an Albanese Labor government which is delivering policies that will reduce the cost of living instead of the constant wrecking we've seen from this lot?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Smith for the question. We know that when those opposite were in government and they threw money around, it was not targeted and there was no care taken to prepare this country for the future. We inherited a mess and we're fixing it up bit by bit. We haven't taken our eye off addressing the pressure on inflation but are continuing to provide cost-of-living relief where we can without adding to the challenge of inflation. We have advocated for wage increases and we are seeing pleasing results there for the first time in a decade after those opposite opposed them at every point. We are delivering cheaper child care. We are delivering cheaper medicines. We are delivering fee-free TAFE and more university places so more Australians can get access to more training and better jobs. This is what Australians need from their government. The 180,000 fee-free TAFE places have reached their limit earlier than expected—60 of those places are going to women, and it's a fantastic result to see so many more people in training. (Time expired)