Medicines Australia has raised concerns over the 2026-27 Federal Budget, warning that the absence of a funded reform plan for Australia’s Health Technology Assessment (HTA) system could further delay patient access to innovative medicines.
While welcoming continued investment in the Pharmaceutical Benefits Scheme (PBS), Medicines Australia says the Budget fails to address long-standing structural issues affecting how new medicines are assessed and subsidised in Australia.
“Despite years of reviews, expert consultation and consensus-driven recommendations, the Budget contains no meaningful funding commitment or progress on implementation of HTA reform,” says Medicines Australia.
“Failure to further invest — at a time other countries are increasing their funding of new medicines — will ultimately come at a cost to patients and consumers.”
Chief Executive Officer of Medicines Australia, Liz de Somer says Australians are already waiting too long for access to treatments available in comparable countries.
“Medicines Australia understands that Australia is facing a number of substantial economic challenges but there should always be room in the Federal Budget to improve access for patients to new and innovative medicines,” she says.
“Patients are waiting too long for access to new treatments, and without meaningful reform to the HTA system we risk falling further behind comparable countries.”
Medicines Australia also warns that growing global uncertainty, including the United States’ proposed ‘Most Favoured Nations (MFN)’ pricing policy, could make Australia a less attractive market for launching new therapies if reforms are not prioritised.
“Australia should be proud of the PBS and the role it plays in ensuring affordable access to medicines, but the system supporting it has not kept pace with advances in medical innovation,” says Ms de Somer.
“The emergence of international pricing policies such as the United States’ Most Favoured Nations proposal creates additional uncertainty for global medicine investment and launches.
“Australia cannot assume it will automatically remain an early access market for innovative medicines.
“Maintaining that position requires a modern, efficient and globally competitive system.”
Medicines Australia understands that, with the ongoing cost-of-living challenge that Australian families face, efforts to keep the price of medicines down are a priority.
“The fact remains that, without further reforms to the HTA, Australians will simply struggle to access the new and innovative medicines that will make a difference to their health,” says the organisation.
“We urge the government to prioritise the accessibility and availability of new medicines at the forefront of reforms to the PBS rather than simply treading water.
“As part of Budget 2026-27, we welcome the creation of a National Science and Resilience Council, but emphasise the need for a medicines industry representative to be included in the Health working group.
“Increased spending through the Medical Research Future Fund is welcomed, along with the contributions to the National One Stop Shop and a not-for-profit clinical trials program.
‘But they are no substitute for the broad funding and structural reform the PBS so badly needs.”
Medicines Australia says it “remains committed to working constructively with the Australian Government and Health Minister Mark Butler to modernise Australia’s medicines system and ensure patients have timely access to the treatments they need”.
“We stand ready to continue working constructively with the Government to ensure Australians can access the medicines and therapies they need, when they need them,” says Ms de Somer.
