The cost of HIV-prevention medication is set to be slashed following the addition of the drug PrEP to the Pharmaceutical Benefits Scheme (PBS).
The preventative medication is up to 99 per cent effective in stopping the spread of HIV when taken daily.
According to Health Minister Greg Hunt, this move "puts Australia in reach of being one of the first countries in the world to end the transmission of HIV".
"PrEP is a medical innovation that will save Australian lives and the decision to list it is one of the most significant advancements in HIV transmission Australia has ever seen," Mr Hunt said.
"32,000 patients each year will pay a maximum of only $39.50 per script … without subsidy, patients would pay $2,496 per year for this medicine.
"Access to PrEP will not only benefit gay and bisexual men but will also drive down rates of HIV in Aboriginal and Torres Strait Islander peoples, migrant communities and other population groups which have seen increased transmission rates over recent years."