Prescription drug prices will be reduced in 2023 as part of a new government measure on the cost of living

Prescription drug prices will be reduced in a new cost-of-living measure by the federal government.

Australians’ co-pay for scripts under the Pharmaceutical Benefits Scheme will be capped at $30, as opposed to the current maximum co-pay of $42.50.

WATCH THE VIDEO ABOVE: Cutting drug costs in response to the inflation crisis.

For more personal finance news and videos, check out Personal Finance >>

This will save people who take multiple medications on a regular basis hundreds of dollars each year and prevent them from having to choose between spending their money on drugs or other essentials, the government says.

However, the measure will not come into force until January 1, with the Albanian government tabling the bill in parliament on Wednesday.

Health Minister Mark Butler said almost a million Australians had delayed or avoided filling their prescriptions, citing recent research.

“Reducing their price by almost a third will mean more people can afford to get the medicines they need to stay healthy, without worrying too much about the price,” he said.

“This change will put almost $200 million back in the pockets of Australians every year.”

Anthony Albanese is under pressure to fight inflation. Credit: AAP

Meanwhile, Prime Minister Anthony Albanese conceded there will be tough decisions in the October budget, despite the inflation crisis.

As inflation and interest rates continue to rise, the government has signaled it will seek to rein in spending due to high levels of Commonwealth debt.

The prime minister said he aimed to be upfront about possible cost-cutting measures in the federal budget.

“We inherited $1 trillion in debt from the Liberal Party. When the interest rate goes up, the costs of paying off that Liberal Party debt go up as well,” he told a news conference in Canberra on Wednesday.

“What that means is that we can’t do everything we would like to do.”

Interest rate pain

It comes as the Reserve Bank raised the official interest rate on Tuesday for the fifth consecutive month.

The spot rate now sits at 2.35%, up from a record low of 0.1% earlier this year.

The government is under pressure to maintain a fuel excise cut, which expires at the end of the month.

The end of the fuel excise duty reduction is expected to increase gasoline prices by approximately 25 cents per litre.

Albanese said the cost of living would be central to the budget.

“We will go line by line, search for the waste of the former government, search for their largesse and these funds (used) only for political purposes and not in the national interest,” he said.

“All commitments from the former government are being reviewed.”

– With PAA

If you would like to view this content, please adjust your .

To find out more about how we use cookies, please see our Cookie guide.

Source link

About Alex S. Crone

Check Also

Free statute of limitations: 64-year-old woman worries about possible alignment with state pension | Personal finance | Finance

The proposal suggested that the age of free prescription could be raised to bring it …