'Envy of the world': Anthony Albanese, Peter Dutton vow to protect PBS from trade war after pledge to slash medicine prices
The federal government has vowed to lower the cost of most medicines on Australia's Pharmaceutical Benefits Scheme (PBS), as both major parties stand united to protect it against Donald Trump's tariff war.
The Albanese government claims Australians will save $200 million a year under its plan to cut the maximum price for most medicines on the PBS from $31.60 to $25.
It would see four of out five medicines become cheaper as part of the $689 million investment, announced today as the PBS is under attack from US drug giants.
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The Albanese government claims Australians will save $200 million a year under its plan to cut maximum PBS medicine prices from $31.60 to $25. Getty Images/iStockphoto
Prime Minister Anthony Albanese and Opposition Leader Peter Dutton put on a rare united front when speaking today about protecting the PBS.
The PM today confirmed the scheme was "not for sale" and said medicine prices in Australia would not face the wrath of overseas big pharma.
"Under my government, it will never be the subject of negotiation," he told media.
"What we're going to do is continue to advocate for Australia's national interests, not the interests of big pharma."
The PM added: "And the act of increasing tariffs, of course, is always an act of self-harm, putting increased costs to people who are consumers where the tariff is imposed increased costs on them, doesn't change the costs of Australians."
Albanese also elaborated on Labor's pledge to cap the price of PBS-listed medicines to $25 per script.
"Our health system is the envy of the world, and we need to defend it and protect it," the PM said.
Speaking earlier today, Dutton also said Australia's PBS was the "envy of the world" and pledged to protect the scheme from US drug giants.
"We will fight against any big drug company imposing tariffs," Dutton said.
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The PBS is under attack from US drug giants following threats of tariffs placed on medicine. 9News
The promised reduction will be revealed in full in next week's federal budget.
It will take effect on January 1 next year if the government is re-elected.
The Coalition has also said it would match the policy.
An individual could save up to $235 a year under the revised pricing.
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Anthony Albanese said the PBS is not for sale 9News
However, the announcement comes amid fears Australia's PBS could become a target in a new round of US tariffs.
Pharmaceutical giants in the US oppose government subsidies and said the PBS is one of several "egregious and discriminatory pricing policies" in a new submission to the White House.
The government and the opposition have both pledged to take the PBS off the table in negotiations over tariffs with the Trump administration.
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