The 2026-27 Federal Budget marks a significant milestone in efforts to expand access to biologic medicines.
Aligned with the Government’s focus on boosting productivity, strengthening economic resilience, and ensuring budget sustainability, the Generic and Biosimilar Medicines Association (GBMA) has welcomed the commitment to advancing biosimilar policy reform as a meaningful step forward for patients. These life-changing medicines play an important role in improving access and supporting the long-term sustainability of the Pharmaceutical Benefits Scheme (PBS).
Building on years of sustained advocacy by the GBMA and its members, the Government has announced that the Commonwealth will begin consultation on options to ensure Australians have fast access to life-saving medicines and changes to prescribing practices to consider if biosimilar medicines should be the default for new prescription medicines.
These actions will ensure the system continues to provide Australians with world-class access to medicines while preparing to meet the needs of Australians into to the future.
Biosimilar medicines are highly similar versions of the original, or ‘reference’, brand of a biological medicine. They are subject to the same regulatory standards and are equally safe and effective at treating the same diseases as the original biological medicine3.
Independent Chair of the GBMA, Jane Halton, said the Budget reinforces the importance of access to life-changing medicines, while also recognising Australia’s place in a competitive global environment.
“Biosimilar policy reform has the potential to significantly expand access to biologic medicines, ensuring more Australians can receive treatment earlier and helping to reduce inequity in access,” she said. “Greater uptake of biosimilars could free up as much as 1.5 billion1 dollars in critical headroom over the next 5 years for the PBS which can be reinvested in new therapies and delivering better outcomes for patients.”
GBMA CEO Nikki Lorenz said the Budget provides a strong platform to build on, particularly as Australia looks to balance access with long-term supply security.
“Progress on biosimilar policy is a critical step forward. Targeted reform presents a clear opportunity to unlock further capacity within the PBS, supporting reinvestment in innovative treatments while ensuring more Australians can access the medicines they need.” Ms Lorenz said.
“At the same time, strengthening supply chain resilience must remain a priority. In a competitive global market, Australia needs policy settings that support reliable medicine supply, so patients are not left waiting.”
The GBMA emphasised that safeguarding supply and improving access will require a coordinated, cross-sector approach that recognises global market dynamics, alongside ongoing improvements to PBS sustainability settings and medicine shortage communication.
GBMA looks forward to working with Government and the Department on practical policy settings to support this initiative to expand access and lower costs, ensuring patients directly benefit from the savings generated by lower-cost biosimilar medicines.
Generic and Biosimilar Medicines Association
Level 17, 1 Denison St, North Sydney, NSW 2060
admin@gbma.com.au
About GBMA
The Generic and Biosimilar Medicines Association (GBMA) is the peak representative body of generic and biosimilar medicine suppliers in Australia. Its members ensure that all Australians are offered the highest quality generic and biosimilar medicines in the world whilst providing affordable community health outcomes that benefit all Australians.
About Biosimilars2
Biosimilar medicines are highly similar versions of the original, or ‘reference’, brand of a biological medicine. They are subject to the same regulatory standards and are equally safe and effective at treating the same diseases as the original biological medicine.[2]
Biosimilar brands of medicine come onto the market after the patent for the equivalent reference brand of a biological medicine has expired. They provide more brand options for the same clinical results and introduce competition into the medicines market. They have been in use internationally for more than 15 years.
[1] Data on file
2 Australian Government. Department of Health and Aged Care. About Medicines. Available online: https://www.health.gov.au/topics/medicines/about-medicines.
3 Australian Government. Department of Health and Aged Care. Biosimilar Medicines Regulation. Available online: Biosimilar medicines regulation | Therapeutic Goods Administration (TGA)
