Federal Health Minister Peter Dutton will now be able to list some medicines on the Pharmaceutical Benefits Scheme without cabinet approval, after the introduction of a $20 million threshold.
Mr Dutton said drugs expected to cost less than $20 million in each of the first four years they were subsidised could now be approved without the backing of cabinet, thereby fast-tracking their listing.
The Howard government in 2001 introduced a $10 million threshold, which Mr Dutton accused the former Labor government of abandoning.
The new $20 million threshold for cabinet approval was promised by the coalition in the lead-up to September's election.
"The coalition government has not only restored, but increased the threshold which will mean that more patients can access new and improved medicines sooner and at an affordable price," Mr Dutton said in a statement.
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Industry body Medicines Australia said the "common sense" administrative change would speed up the listing of some drugs.
"This is good news for companies who'll benefit from greater predictability, good news for government who'll have more efficient processes, and, ultimately, good news for patients who'll get access to new medicines sooner," Medicines Australia chief Brendan Shaw said in a statement.
