This bill became law on Nov 9th, 2022.
Health, care & disability
From 1 January 2023, the maximum PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. for general patients falls by $12.50, cutting the usual top price from $42.50 to $30.00 per script.
Cutting the PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. general co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. from $42.50 to $30.00 created a problem: some patients could have paid more for medicines that pharmacists had previously been able to discount. The bill cuts the co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest., lets pharmacies give larger discounts on some PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. medicines, and keeps those payments counting toward the Safety Net.
Australians were already paying up to $42.50 a script under the PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price., and as living costs rose during 2022 both major parties moved in the election campaign to promise cheaper medicines. The bill turned that into law by cutting the general co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. to $30, expanding optional pharmacy discounts so some patients would not pay more on medicines previously sold below the cap, and from 1 January 2023 those lower payments still counted toward the PBS Safety NetThe yearly PBS cap that reduces what people pay once they have spent enough on subsidised medicines..
The main criticism was that cheaper PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. scripts would help but would not fix the bigger problem of people still struggling to see a doctor or get broader primary care. That view came mainly from crossbench supporters and a few conditional voices, while no party represented in the debate opposed the bill itself.
Mark Butler MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 09 Nov 2022
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
63 days
From introduction to the latest recorded parliamentary step
Meaning
From 1 January 2023, the maximum PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. for general patients falls by $12.50, cutting the usual top price from $42.50 to $30.00 per script.
Pharmacies can offer bigger optional discounts on some PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. medicines priced between $30.00 and $42.50, so patients are not left paying more after the co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. cut.
Patients who get one of these extra-discounted PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. prescriptions can still have what they pay counted toward the PBS Safety NetThe yearly PBS cap that reduces what people pay once they have spent enough on subsidised medicines. threshold.
The new $30.00 general patient chargeThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. starts annual CPIThe inflation measure used here to update the PBS charge and discount limits over time. indexationThe yearly adjustment that changes the dollar amounts in the PBS rules to keep pace with inflation. from 1 January 2024, and the upper price limit for the extra discount starts annual indexationThe yearly adjustment that changes the dollar amounts in the PBS rules to keep pace with inflation. from 1 January 2023.
The Health Minister can make special PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. arrangements by legislative instrumentA formal legal document made by a minister that sets out detailed rules under the Act., which means those decisions must be made through a formal published legal instrument.
The National Health Amendment (General Co-payment) Bill 2022 (Bill) amends the National Health Act 1953 (National Health Act) to reduce the Pharmaceutical Benefits Scheme (PBS) general co-payment (general patient charge) by $12.50, from the current amount of $42.50 to the new amount of $30.00, commencing from 1 January 2023.National Health Amendment (General Co-payment) explanatory memorandum
The amendments in Schedule 1 of the Bill reduce the PBS general patient charge by $12.50, from the current amount of $42.50 to the new amount of $30.00. For certain supplies of pharmaceutical benefits that have a Commonwealth Price between $30.00 and $42.50 (indexed annually), the Bill gives pharmacists an option to discount the price to general patients by more than $1 while supplying as a PBS prescription. These changes will take effect from 1 January 2023.National Health Amendment (General Co-payment) explanatory memorandum
Item 4 inserts a new subparagraph 84C(4)(c)(ia), which allows prescriptions that are eligible for increased discounting to be taken into account for the purposes of section 84C of the National Health Act where the amount charged is less than the general patient charge amount (less any allowable discount). This means the amount charged for the supply of these scripts can contribute towards reaching the PBS Safety Net threshold.National Health Amendment (General Co-payment) explanatory memorandum
The Bill resets the general patient charge to $30.00 and defines this amount as the general patient charge amount on 1 January 2023. This item provides for the indexation of the general patient charge amount to resume on an annual basis from 1 January 2024. This item also provides for the “Increased discounting upper Commonwealth price” to be indexed annually from 1 January 2023. This item does not change indexation arrangements for other amounts.National Health Amendment (General Co-payment) explanatory memorandum
After “The Minister may”, insert “, by legislative instrument,”.National Health Amendment (General Co-payment) as-passed bill text
Context
Australians were already paying up to $42.50 a script under the PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price., and as living costs rose during 2022 both major parties moved in the election campaign to promise cheaper medicines. The bill turned that into law by cutting the general co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. to $30, expanding optional pharmacy discounts so some patients would not pay more on medicines previously sold below the cap, and from 1 January 2023 those lower payments still counted toward the PBS Safety NetThe yearly PBS cap that reduces what people pay once they have spent enough on subsidised medicines..
Coalition announces an election pledge to cut PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. script costs
A coalition campaign event announced a $10 cut to PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price.-listed medicines, helping set up bipartisan support for cheaper scripts during a period of rising household costs.
Hansard ↗Government introduces a bill to cut the maximum PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. to $30
The Health Minister introduced legislation to reduce the general patient chargeThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. from $42.50 to $30 and said pharmacies needed new discount rules so no patient would be worse off.
Hansard ↗Parliament passes the bill
Both houses agreed on the final text after the Senate dealt with amendments, clearing the way for the PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. price cut and related discount changes to become law.
Parliamentary timeline ↗Royal Assent makes the measure law
The Governor-General's assent turned the bill into an Act so the new PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. charging arrangements could commence on the planned start date.
Parliamentary timeline ↗Lower PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. and larger optional discounts begin
From this date the maximum general patient chargeThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. fell to $30 and payments on eligible discounted medicines still counted toward the PBS Safety NetThe yearly PBS cap that reduces what people pay once they have spent enough on subsidised medicines. threshold.
Australian Parliament House ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber considered amendments before the bill moved to the next stage.
Committee of the Whole debate
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill reached this recorded parliamentary step.
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Consideration of Senate message
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal Assent, turning the bill into an Act.
Key criticism
The main criticism was that cheaper PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. scripts would help but would not fix the bigger problem of people still struggling to see a doctor or get broader primary care. That view came mainly from crossbench supporters and a few conditional voices, while no party represented in the debate opposed the bill itself.
Criticism was limited and mostly about gaps around the bill, not the co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. cut itself.
Does not fix wider access to care
Several supporters argued the bill lowers medicine costs but does not solve the larger affordability problem if patients still cannot get timely, affordable GP care or face weak Medicare rebates and bulk-billingA way of billing where the doctor accepts the Medicare rebate as full payment, so the patient pays nothing out of pocket. access.
Questions about funding and delivery
Some supporters warned that the savings still have to be paid for from the budget and said the government should explain how it would fund the measure, deliver relief quickly, and avoid compromising medicine access or quality.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
The APH progress record says 2 Independent amendments were agreed without a counted division being collected by this run.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
The parliamentary record also shows 2 Independent amendments agreed without a counted division.
Parliamentary debate
Start here — lead voices
Mark Butler supports the bill as the minister introducing it.
Read in Hansard ↗Pike says he supports the bill because it will lower medicine costs and help Australians who are struggling with affordability, especially in his electorate.
Read in Hansard ↗Sophie Scamps supports the bill because she says cutting prescription co-payments will ease cost-of-living pressures and improve access to medicines for ordinary Australians.
Read in Hansard ↗McAllister supports the bill because it will cut the PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. general co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest. from $42.50 to $30 and reduce cost-of-living pressure for millions of Australians.
Read in Hansard ↗All speeches by bloc
15 speakers · 16 contributions · 15 support
“The Bill will help ease the squeeze on household budgets for millions of Australians.”Read the full speech in Hansard ↗
“I am so pleased to be speaking today in support of the National Health Amendment (General Co-payment) Bill 2022, which delivers on one of our government's very important election commitments. It has been a huge day for this government delivering on election commitments.”Read the full speech in Hansard ↗
“This is a very important bill. We know that with the cost of living going up at the moment, and interest rates, we hear many, many people, not just over this period where it's becoming even more difficult, but over a period of time people making really tough, hard decisions. One of the things that they're jeopardising is their health.”Read the full speech in Hansard ↗
“This bill also fulfils the Albanese government's election promise to cut the cost of medicines and ease cost-of-living pressures for all Australians. I commend the legislation to the House.”Read the full speech in Hansard ↗
“We must support this legislation so that it can get through in the spring sittings so that next year Australians will be able to afford medicines.”Read the full speech in Hansard ↗
“Having watched the dramatic increase of PBS co-payments over the last couple of decades, I know this legislation couldn't be more timely. It is vital that this legislation be passed. And I am very pleased to hear that members opposite have seen their way clear to support this bill. It is good policy. It is good public health policy. And it is deserving of support from all quarters of this parliament, because, right now, Australians are paying the price for a decade of missed opportunity and drift in health. This bill will make a real difference to their household budgets for millions and millions of Australian people.”Read the full speech in Hansard ↗
“This bill delivers against our commitment before the election.”Read the full speech in Hansard ↗
“The Albanese Labor government, our government, has committed to reducing the maximum amount Australians pay for their Pharmaceutical Benefits Scheme medicines. That was a commitment we made at the last election, and now we are starting the process to deliver on that commitment. Our communities and vulnerable Australians deserve to be supported. They do not deserve to be punished. Financial barriers should not be preventing the people in my electorate on the Central Coast or people right across Australia from complying with their therapeutic regiment. This financial barrier represents a heavy burden for so many people. One of the reasons that I ran in the 2022 federal election was to ensure that all Australians—in particular, those in the electorate of Robertson—have access to universal and world-class medical care. Our goal is equity, equality, access. The introduction of this bill and the associated changes to the Pharmaceutical Benefits Scheme represent this government's, our government's, commitment and investment into Medicare, they represent our investment into health services and they represent our investment into the wellbeing of the Australian people.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Ged Kearney on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Kearney strongly supports the bill, saying it will cut the PBSThe government program that subsidises many prescription medicines so patients pay a capped amount instead of the full price. general co-paymentThe amount a general patient pays toward a PBS medicine before the government subsidy covers the rest., ease cost-of-living pressure, and help Australians get the medicines they need. She argues it will especially help people who are already forced to choose between prescriptions and other essentials.
“I rise to support the National Health Amendment (General Co-payment) Bill 2022, and it is my great pleasure to stand in support of this legislation today.”Read this contribution in Hansard ↗
Second reading speech
Kearney supports the bill and says it will quickly cut prescription costs and ease pressure on household budgets while improving access to medicines. She argues it is a fair Labor reform that should pass this year so savings can start from 1 January.
“These are the kinds of reforms that a Labor government delivers. This is what Labor does. Having spent so much of my life in the healthcare system as a nurse, I'm proud to stand and support it here today. This bill will ease pressure on families and will do so quickly. I'm pleased to hear the debate on this issue and I look forward to hearing from others in the House and the Senate this week. I urge the opposition and the crossbench to really think about the positives in the legislation. It's important that it passes this year so that savings to households can come into effect from 1 January next year. That's a real boost to household budgets in the short term that our Labor government is pleased to be providing.”Read this contribution in Hansard ↗
“That's why this legislation is so vital. It demonstrates yet again that the Albanese Labor government is committed to addressing these cost-of-living pressures that Australians are facing in these uncertain times. This delivers on that commitment and I commend the bill to the House.”Read the full speech in Hansard ↗
“Under the National Health Amendment (General Co-payment) Bill 2022, a reduction to the PBS general patient co-payment by $12.50 will mean that the maximum Australians pay for PBS medicines will drop from, as I say, $42.50 down to $30. That's a 29 per cent saving—not bad. Furthermore, no patient will be worse off. Pharmacies can, if they choose, continue to offer optional discounts to general patients on prescriptions with a Commonwealth price between the new amount and the current amount.”Read the full speech in Hansard ↗
“By increasing the availability and affordability of health care for Australians, as this bill does, the Labor government has proven once again to the people of Australia that we are on their side and we will always fight for better health care for Australians and their families. I commend the bill to the House.”Read the full speech in Hansard ↗
“Today, I introduce the National Health Amendment (General Co-payment) Bill 2022. The amendments made by this bill will cut the cost of medications by reducing the Pharmaceutical Benefits Scheme, or the PBS, general patient charge, commonly referred to as a co-payment, from the current maximum of $42.50 per script to a maximum of just $30 per script.”Read the full speech in Hansard ↗
“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.”Read the full speech in Hansard ↗
“I'd like to congratulate the Minister for Health and Aged Care for introducing the National Health Amendment (General Co-Payment) Bill 2022. This is a really momentous health bill. It demonstrates to all the measured approach of the Albanese Labor government to our program that we will put in place over the next three years.”Read the full speech in Hansard ↗
10 speakers · 10 support
“So it's a very real concern for the people in my electorate and we certainly welcome this bill. This is because it will assist them in being able to purchase these medicines and also assist in preventing the erosion of the value of their dollar in such high-inflation times. That's an issue which is not going to go away any time soon.”Read the full speech in Hansard ↗
“I have come roughly to the conclusion of my time, so I will leave the debate there. I look forward to these changes coming. I wish they were coming faster because, even today, we know that fuel is going to go up 22c tonight. So it would be good if we had this coming down the pipeline a bit quicker, but I think we've got to wait until January.”Read the full speech in Hansard ↗
“So this is a bill that we happily support on the basis that it will contribute, in some way, towards enhancing our system to be even more than it is right now. I commend the bill to the House.”Read the full speech in Hansard ↗
“Reducing the PBS medicines co-payment at a time of ever-increasing cost-of-living pressures is a step in the right direction in supporting hardworking Australians. I support this legislation and I look forward to hearing what other steps the federal government will be taking to bring additional cost-of-living measures relief to our communities.”Read the full speech in Hansard ↗
“We support it; the coalition and I, as the member of the Petrie, will be supporting this government bill. We're debating the National Health Amendment (General Co-payment) Bill today: this is good policy and I'm happy that it's going through. It's something that the people of Petrie will appreciate and, as their voice here, I'll be supporting it.”Read the full speech in Hansard ↗
“We support Labor's bill to reduce the maximum general co-payment for medicines on the PBS whilst we note that it is a copycat policy, made from our policies.”Read the full speech in Hansard ↗
“This general co-payment bill amends the National Health Act to reduce the Pharmaceutical Benefits Scheme general co-payment by $12.50, from the current amount of $42.50 to the new amount of $30, taking effect on 1 January. This is happening in a time when inflation is rampant and greater in the foods and commodities that families actually have to buy. We may have an inflation rate of around six or seven per cent, but the increases for the actual food that you need to buy, the food that is important for a family, are from 12 per cent in some cases to 23 per cent, and there are not the specials available in the supermarkets that were available. The costs have increased for families. So, at a time when families are under enormous pressure for their day-to-day living costs, this is a change that I support wholeheartedly—and I mean wholeheartedly.”Read the full speech in Hansard ↗
“The opposition is very pleased to support the National Health Amendment (General Co-payment) Bill 2022, because it enables the implementation of a key coalition election commitment—a commitment that the Labor Party was shamed into copying during the election campaign. The bill amends the National Health Act 1953 to reduce the Pharmaceutical Benefits Scheme general co-payment by $12.50, from $42.50 to $30, saving patients on out-of-pocket expenses.”Read the full speech in Hansard ↗
“We support Labor's announcement to reduce the maximum general co-payment for medicines on the PBS, noting its copycat nature, made after our own election commitment to reduce the co-payment back to 2008 levels. Given Labor's record of failing to list medicines on the PBS, we will be watching them carefully when it comes to this extremely important part of our healthcare system. The coalition will continue to hold Labor to account for its promises to the Australian people and advocate to make medicines cheaper for Australians.”Read the full speech in Hansard ↗
“In conclusion, I restate that the coalition, the opposition, will support Labor's bill and we do agree with their intent, which was first promulgated by us during the campaign, to make medicines cheaper.”Read the full speech in Hansard ↗
5 speakers · 5 support
“That is why I welcome the National Health Amendment (General Co-payment) Bill. It is a small but significant and important cost-of-living measure that will support millions of everyday Australians.”Read the full speech in Hansard ↗
“As I said earlier, I'm not challenging or questioning the value of the Pharmaceutical Benefits Scheme for our society, and I would fight to ensure it is maintained and continues to provide for all Australians as needed. In the current economic circumstance, where research shows us that many are finding it harder to juggle the expense of everyday items like medicines, I support the reduction in the co-payment amount for consumers. But, as a pragmatist and on behalf of the people of North Sydney, I would challenge both this government and our parliament to be clear on how it is that we see this program continuing to be funded into the future. We cannot simply shift costs from one column to another and expect Australians not to notice. As this legislation passes through the House, then, I look forward to seeing what must surely follow in quick succession, and that is greater detail on how this government intends to pursue multinationals to ensure they are, in fact, paying their fair share. I commend the bill to the House.”Read the full speech in Hansard ↗
“This bill provides the targeted healthcare intervention that we need to help those most in need of assistance with cost-of-living pressures. To further improve our health system we need to optimise our use of prescription medications and to improve our healthcare outcomes. I call on the Albanese government to reverse its decision to withdraw support for the NPS MedicineWise program.”Read the full speech in Hansard ↗
“I support the bill, and I urge the government to ensure that access to medications is not compromised with a more affordable cost. We must ensure supply always meets demand, and we may see a sharp increase in uptake. I certainly hope that there's been preparation for this.”Read the full speech in Hansard ↗
“I too rise to support the National Health Amendment (General Co-Payment) Bill 2022. This bill will reduce the Pharmaceutical Benefits Scheme co-payment for medications to provide Australians with more affordable access to necessary medicines. The bill will cut the cost of the PBS co-payment from the current maximum of $42.50 per script to $30 per script—at most, a reduction of around one-third of the current cost for general patients. That is an extraordinary saving, particularly when people have multiple scripts. This bill will ease the cost-of-living pressures and produce public health benefits. I therefore commend it to the House.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Committee of the whole: amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
House · Message from Senate reported
Message from Senate reported
The bill reached this recorded parliamentary step.
House · Consideration of Senate message
House agreed to Senate amendments
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal Assent, turning the bill into an Act.
