Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Hansard source

Over the last two days, the House of Representatives has debated legislation to introduce the biggest cut to the cost of medicines for Australian households in the 75-year history of the Pharmaceutical Benefits Scheme—a cut in price for general patients of almost 30 per cent to the maximum cost of their scripts from $42.50 to just $30.

It was a Labor government that first introduced legislation to make life-saving drugs more affordable, and the Albanese government now remains committed to ensuring that the PBS continues to enable Australians to access affordable medicines. After almost a decade of neglect by the Liberal and National parties, the costs of living are soaring with many Australians cutting back on essentials to make ends meet. They are being forced to choose between filling prescriptions for potentially life-saving medicines and providing for their families. This bill amends the National Health Act 1953 to reduce the maximum general patient co-payment under the PBS from the current maximum of $42.50 to $30. From 1 January 2023 around 3.6 million Australians with current prescriptions over $30 will benefit through this initiative of the Albanese Labor government. People filling a prescription for one medication per month will save around $150 a year, while a family filling prescriptions for two or three medications per month could save $300 to $450 per year.

The bill will ease the cost-of-living pressures that Australian households are experiencing around the country, but this bill will also have a profound benefit to public health. We know from the Bureau of Statistics that every year as many as 900,000 Australians go without the medicines that their doctors have said are important for their health simply because they cannot afford them. There is no doubt that all Australians place great value on the medicines and essential health care the PBS provides. All Australians deserve access to universal, prompt and world-class medical care. Pharmacist after pharmacist has told stories of their customers coming into their pharmacy, putting a number of scripts on their counter and asking for advice about which ones they can go without because they can't afford to fill all of the scripts that their doctor has said are important for their health.

We know this policy will make a difference because of what Australians are telling us. Cherie from Bribie Island, in my home state of Queensland, says that after buying medications she must also pay for groceries and rent. Every dollar adds up, and she doesn't want to have to choose. She knows this change will make a big difference for her and her friends. Grace, a 20-year-old type 1 diabetic who has just moved out of home, told the health minister, Mark Butler, 'I am so thankful that insulin will be cheaper for me now that I live out of home.' Cornelia said: 'This will make such a difference to us. My husband is on about a dozen scripts a month to keep him well enough to keep on working. He's been able to work in a physical job thanks to great specialists, GPs, pharmacists and especially research staff, and thanks to the PBS we can just about afford all of these drugs. Any further discounts will help enormously.'

This bill will ensure patients receive the essential medical care needed to prevent serious illness and stay healthy. It will allow Australians to shop around to get the best price for their medicine. The bill will ensure that no Australian will be worse off under this change by including provisions to allow pharmacies to continue offering discounts at current levels to their customers. Right now Australians are paying the price for a decade of missed opportunities and drift. Through this bill we'll make a real difference to household budgets for millions of families but also to people's health. After nine years of neglect from the former government, the costs of living are soaring and Australians are cutting back on essentials to make ends meet.

The maximum cost to general patients for PBS medications has doubled since 2000, and the previous government did nothing to help. The Liberals and Nationals, when they were in power, committed to cutting the costs of medicines, but only the Albanese Labor government committed to cutting the general patient maximum co-contribution from $42.50 to just $30. Cutting the maximum price by nearly one-third will mean more people can afford to get the medications they need to stay healthy. This change will put close to $200 million back into the pockets of Australians each year. Just like Medicare, it was Labor that built the PBS and Labor will always protect it so that all Australians can access affordable medicines when they need them. I thank all senators for their contributions and commend the bill to the Senate.

Question agreed to.

Bill read a second time.