Those suffering from arthritis and ADHD will be able to access treatment at a dramatically more affordable price.
From Saturday, the medicine Olumiant will be available on Pharmaceutical Benefits Scheme to help sufferers of rheumatoid arthritis.
Instead of paying more than $16,000 for treatment, patients will have to pay a maximum of $39.50 per script.
Up to 22,000 people could benefit from Olumiant being added to the PBS.
The drug aims to work by blocking parts of the immune system involved in rheumatoid arthritis.
It is similar for sufferers of attention deficit hyperactivity disorder, who will have easier and cheaper access to the vital drug Intuniv.
Close to 150,000 people will have to pay no more than $39.50 per script instead of a yearly total of $1921.
The drug is designed to improve ADHD sufferers' concentration and make patients less hyperactive.
The independent Pharmaceutical Benefits Advisory Committee recommended the new listings.
Health Minister Greg Hunt said the Morrison government was committed to delivering better results for Australians in pain.
"Since coming into government, the coalition has helped improve the health of Australians by subsidising more than $9 billion worth of new medicines," Mr Hunt said.
"Our commitment to the PBS is rock solid. Together with Medicare, it is a foundation of our world-class health care system."
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