A Coalition-led effort to block Labor's prescription dispensing scheme descended into chaos in the Senate on Thursday.
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The scheme that will allow millions of Australians to access hundreds of medicines for half the cost will start as planned on September 1 but the Coalition is expected make another attempt to defeat the policy when parliament returns next month.
The pharmacy sector has been lobbying against the scheme amid concerns it could jeopardise thousands of jobs and billions in revenue.
Coalition senators Anne Ruston and Bridget McKenzie on Wednesday said they would move a disallowance motion if Labor didn't delay the introduction of the planned measure and renegotiate with community pharmacists.
But after initially seeking to move the disallowance motion in the upper house, Coalition senators on Thursday attempted to defer it.
Later on Thursday afternoon, Labor, with backing from the Greens as well as crossbenchers, including ACT senator David Pocock, forced the motion and moved to defeat it.
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The scheme is set to start as planned next month but Nationals senator Bridget McKenzie told the ABC they have lodged another disallowance motion, which could be put to a vote when parliament returns in September, after the scheme kicks in.
"We can get the policy right, we're absolutely confident that our local pharmacist want to sit down with Mark Butler and find the right solution, renegotiate the pharmacy agreement," she said.
The Coalition supports 60-day dispensing but was concerned Labor's approach "could see community pharmacies close down".
Health Minister Mark Butler on Thursday criticised the Coalition's attempts to block the scheme.
"That for me is just an extraordinary act of irresponsibility and and shows what a tin ear this coalition has around cost of living measures," he said.
But he said he was confident "about the will of the Senate".
Mr Butler told journalists the hit to revenue would amount one to two per cent and while that's "not nothing" in the context of 30 percent industry growth over the last four years, "the sort of catastrophic claims that are being made by the coalition and the pharmacy lobby itself simply don't stand up to scrutiny".
The government estimated the policy would save $1.2 billion over the next four years, which it planned to reinvest into community pharmacies.
Senator Pocock said he has consulted widely with local ACT pharmacies, patients and other stakeholders on changes to both dispensing and the Opioid Dependence Treatment (ODT) program before deciding to oppose the Coalition's disallowance motion.
"I've heard pharmacies' concerns about impacts on their revenue from the move to 60 day dispensing and I've been advocating with Minister Butler to ensure maximum reinvestment in community pharmacies and will continue to push this," he said.
"I am also mindful of feedback received from multiple consultations across the community about the urgent need for cost-of-living relief, including the consumer savings 60-day dispensing will provide.
"People across our community are doing it extremely tough and while this was a difficult decision I believe this strikes the best possible balance."
The nation's doctors have backed the changes, saying they will make medicines more affordable for patients and will free up clogged GP clinics by reducing the frequency of repeat visits.
The Rural Doctors Association of Australia also threw its weight behind the dispensing policy, saying the entire healthcare sector was changing to be more patient-focused, and GPs and pharmacists needed to adapt.