Australians could face higher prescription costs next year unless the federal government agrees to freeze the price of medicines covered by the Pharmaceutical Benefits Scheme.

The Pharmacy Guild of Australia, which represents more than 6,000 pharmacies, is calling on the Albanese government to keep the general PBS co-payment at $25 until 2030. The current $25 maximum was introduced on January 1, 2026, after the government reduced the previous $31.60 charge.

Without a freeze, the co-payment is scheduled to rise from January 1, 2027, with increases linked to inflation.

The issue comes as household budgets remain under pressure. Australia’s annual headline inflation rate eased to 3.5 per cent in July, down from 3.8 per cent, but remained above economists’ expected 3.3 per cent.

The Guild argues that keeping medicines affordable could also reduce pressure on Australia’s healthcare system. It says patients who can afford their prescriptions are more likely to take medicines as directed, potentially reducing complications and avoidable hospital visits.

The savings from the current PBS changes are already significant. According to Guild estimates, Australians saved more than $14 million on base ADHD medicines during the first six months of 2026, while savings on core diabetes medicines reached $5.7 million.

Concession card holders already have their PBS co-payment capped at $7.70 until 2030. The Guild wants similar long-term protection extended to general Medicare card holders.

The government’s PBS spending represents around 0.7 per cent of Australia’s GDP, while previous co-payment reductions have saved Australians an estimated $1.4 billion since 2023.

For millions of Australians managing regular prescriptions, the debate is therefore about more than a few dollars per script. As inflation and interest-rate pressures continue, even relatively small increases could add hundreds of dollars to annual household healthcare costs.

The government now faces a choice between protecting consumers from another cost increase and managing the long-term budget impact of subsidised medicines.