Australian Prime Minister Scott Morrison has announced a $150 million cost-of-living measure to cut the cost of medications for everyday conditions such as blood pressure and high cholesterol by $10 (US$7) per script.
The measure will see the highest price of medications listed under the Pharmaceutical Benefit Scheme (PBS) capped at $32.50 from Jan. 1 next year. The PBS is a list of all medicines subsidised by the Australian government.
The price drop is expected to ease pressure on the wallets of around 19 million Australians each year.
The incumbent prime minister said his centre-right Liberal-Nationals coalition party was “winding back the clock on the cost of medications” because of its “strong economic management.”
The savings mean an Australian taking a common medication once a month could save $120 a year, while those taking two a month could save $240 a year.National president of the Pharmacy Guild of Australia Trent Twomey welcomed the announcement.
“This reduction will help Australians struggling with the cost of living to make ends meet without delaying, deferring, or skipping their prescription medicines,” he said.
Twomey said Saturday’s announcement was the first time since WWII that the cost of medicines has gone down, not up.
The medicines announcement comes as spiking inflation positions cost-of-living pressures as a major campaign issue, with power prices rising and interest rates expected to rise as early as next week.
Speaking to reporters on the campaign trail in Tasmania on Saturday, Morrison defended his decision to cut the cost of medications rather than include it in the recent 2022 federal budget.
“In the Budget this year, we understood the need to take action to provide relief on cost-of-living pressures, and we know those pressures are real,” Morrison said, 9News reported.
“There are many things you can’t control. You can’t control the war in Europe, you can’t control natural disasters. You can’t control whether there is a pandemic or not.
“All of these things impacting on the prices Australians are paying every day.
“You can make the safety net more generous to help people who are on these medications, and you can reduce this non-concessional payment down by $10 on every single script,” he said.
Legislation was also needed to ensure current discounts remain in place, Morrison said.
The centre-left opposition Australian Labor Party leader Anthony Albanese said cost-of-living pressures could be addressed by lifting wages, making child care cheaper, and pushing down power prices through a comprehensive energy plan.
However, Labor has not provided details on their plans.
