Australians are ringing in the New Year with cheaper medicines, expanded access to free health advice and new early mental health support, following a suite of health measures that take effect from today.
From 1 January, the maximum cost of a Pharmaceutical Benefits Scheme (PBS) medicine for general patients has been reduced to $25 per script—the lowest price in more than two decades. The last time PBS medicines cost $25 or less was in 2004.
The cut represents a reduction of more than 20 per cent in the price of PBS medicines and is expected to save Australians more than $200 million each year. Pensioners and concession cardholders will continue to pay $7.70 per script, with the cost frozen at that level until 2030.
The measures were announced in a joint statement by Prime Minister Anthony Albanese, Health Minister Mark Butler and Assistant Minister for Health and Aged Care Ged Kearney, as part of broader cost-of-living and health reforms rolling out in 2026.
Albanese said lowering the cost of medicines was about ensuring Australians never have to choose between their health and their household budget. He said Medicare reflected core Australian values, with access to care based on need rather than ability to pay, and argued that cutting PBS costs would ease pressure on families while improving health outcomes.
The $25 cap builds on earlier PBS reforms, including the reduction of the PBS Safety Net threshold for concession cardholders, the introduction of 60-day prescriptions for more than 300 medicines, and a freeze on PBS co-payments for all Australians—the first such freeze in 25 years. Combined, these measures have saved Australians more than $1.9 billion since January 2023.
Alongside cheaper medicines, Australians now have access to a new national health advice service, 1800MEDICARE, which launches today. The service provides free, 24-hour access to registered nurses who can offer medical advice, reassurance and referrals to appropriate care, including GPs, hospitals or Medicare Urgent Care Clinics.
For urgent GP care outside normal clinic hours, triage nurses can connect callers to a free telehealth appointment with a GP via phone or video, available on weeknights and weekends. The service is designed to help people receive timely care at home and reduce pressure on hospital emergency departments.
The government expects around 250,000 Australians each year will avoid unnecessary emergency department visits as a result of the service, including up to 130,000 free urgent GP telehealth consultations annually by the end of the decade.
Butler said the launch of 1800MEDICARE would make it easier for Australians to access health care when and where they need it, while supporting local services and diverting less serious cases away from emergency departments.
A new digital mental health service, Medicare Mental Health Check In, is also now live, offering free early support for Australians experiencing mild mental health challenges. Run by St Vincent’s Health Australia, the service initially provides evidence-based resources to help people manage symptoms.
From 30 March, the service will expand to include low-intensity cognitive behavioural therapy delivered by trained professionals via phone or video. It is expected to support more than 150,000 people each year once fully operational.
Albanese said the new mental health service was part of a broader effort to ensure Australians can access free mental health care early, without the need for a diagnosis or referral.
Australians can access 1800MEDICARE by calling 1800 633 422, visiting medicare.gov.au/1800 or downloading the new 1800MEDICARE app.
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