The Australian Government is ensuring medicines stay cheaper and on pharmacy shelves across Australia, through a new $4.2 billion agreement with the National Pharmaceutical Services Association over five years.
The First Pharmaceutical Wholesaler Agreement means the rising costs of distributing medicines across the country will not be passed on to consumers.
From 1 January 2025, the agreement will deliver a 34% increase in funding for wholesalers. The Albanese Government is investing more to guarantee access to Pharmaceutical Benefits Scheme (PBS) medicines for all Australians from every community pharmacy.
This investment includes an additional $135 million to manage onshore medicine shortages and more than $275 million for better access to specialised medicines.
The Agreement gives wholesalers financial certainty, allowing them to continue operations, meet their community service obligations and extend those standards to specialised medicines.
These obligations include supplying the full range of PBS medicines to pharmacies across Australia within 24 hours, despite location or cost.
This will ensure Australians can continue to rely on timely medicines from their local pharmacy, while wholesalers can invest to meet the challenges of the future in the sector.
Funding for the Agreement was provisioned for in the 2024-25 MYEFO.
Quotes attributable to Minister Butler:
"The Albanese Government is delivering cheaper medicines for all Australians.
"This new agreement ensures medicine distributors will continue to supply the full range of PBS medicines to pharmacies across Australia within 24 hours, no matter where that pharmacy might be.
"It's a win for patients, who will benefit from affordable PBS medicines when they need them through their local pharmacy.
"I want to thank the National Pharmaceutical Services Association and its members for engaging in this process in good faith to deliver better health outcomes for all Australians."
