Tasmanians are set to pay less for medicines in 2026 with the latest reduction in out-of-pocket prescription costs.
From 1 January, the Albanese Labor Government has reduced the maximum cost of all PBS-listed medicines to $25, and frozen costs at $7.70 for concession card holders.
This latest saving comes on top of earlier policies to save Tasmanians money at their local pharmacy, including:
- Labor’s first cut to the cost of medicines (2022) and indexation freeze (2025), which saved Tasmanians $9.8 million in 2025
- Labor’s 60-day prescriptions policy, which has already saved Tasmanians $8.1 million since September 2023
- Labor’s decision to lower thresholds for the PBS safety net, which has saved Tasmanian $20.5 million since it was introduced in July 2022
The Albanese Labor Government firmly believes that Australians shouldn’t have to worry about whether they can afford to access the healthcare they need.
With cheaper medicines, new Medicare Urgent Care Clinics, more bulk billing and a record investment in women’s health, Labor is committed to delivering cost of living relief for Australians, while strengthening Medicare.
Quotes attributable to Minister for Health and Ageing Mark Butler:
“Since 1 January, Australians are paying no more than $25 for a PBS medicine. This is good news for their hip pocket and good news for their health.
“Australians told us they wanted cost of living relief and a stronger Medicare system – and that’s exactly what we’re delivering.”
Quotes attributable Assistant Minister for Health and Aged Care Rebecca White:
“The last time prescription medicines cost $25 was 2004 – more than 20 years ago.
“Across the board, our government is firmly focused on delivering better health care and relieving cost of living pressures.
“This latest cut to the cost of prescription medicines shows how determined our government is to ensure no one goes without the healthcare they need.”
Quotes attributable to Bridgewater Priceline Proprietor and Pharmacy Guild Tasmania Representative Geoff Hope:
“At my pharmacy, I see first-hand the impact out-of-pocket prescription costs can have on Tasmanians.
“I’m here to help my community live a healthy life, and this latest cut to the cost of medicines will make a real difference for people here in Bridgewater.
“I want Tasmanians to know the cost of medicines has been cut even further from 1 January, and hope this means fewer people go without the treatments they need.”