Federal Politics Live: Treasurer Urged to 'Be Bold' on Productivity, PBS Wait Times a Greater Threat Than Trump's Tariffs

Treasurer Jim Chalmers is urged to be bold on productivity and ditch the "lazy" approach of relying on artificial intelligence. Medicines Australia CEO Liz de Somer warns that excessive wait times for medicines on the PBS are a greater threat to the sector than US President Donald Trump's tariffs. Health Minister Mark Butler has yet to respond to a review of the PBS system, which recommends streamlining processes to access medicines earlier.

July 02, 2025 — Treasurer Jim Chalmers is facing increasing pressure to adopt a more proactive approach to productivity and streamline regulations surrounding artificial intelligence (AI). This comes as Medicines Australia CEO Liz de Somer warns that excessive wait times for medicines on the Pharmaceutical Benefits Scheme (PBS) pose a greater threat to the sector than US President Donald Trump's tariffs. Health Minister Mark Butler has yet to respond to a review of the PBS system, which recommends streamlining processes to access medicines earlier.

The Productivity Commission's interim report on "harnessing data and digital technology" has sparked debate over whether to allow big tech companies to use Australian content to train their AI models. The report suggests that expanding fair dealing rules or creating an exemption for "text and data mining" could boost productivity by up to 13% over the next decade [1]. However, arts, creative, and media groups have expressed concern that such moves could lead to "rampant theft" of intellectual property without compensation.

Medicines Australia's CEO Liz de Somer has emphasized the urgency of reform, stating that patients cannot wait for new innovations. She warns that excessive wait times for medicines on the PBS are a greater threat to the sector than US President Donald Trump's tariffs. The Health Technology Assessment (HTA) process has not kept pace with modern medicines, and de Somer urges the government to prioritize timely access to medicines.

Health Minister Mark Butler has yet to respond to a review of the PBS system, which recommends streamlining processes to access medicines earlier. The review highlights the need for better coordination between the government and pharmaceutical companies to ensure that new medicines are available to patients in a timely manner.

Treasurer Jim Chalmers has acknowledged the risks associated with AI but believes that it can be a "force for good" if treated as an enabler rather than an enemy of the economy. He has emphasized the need for responsible innovation and has pointed out that copyright laws apply in Australia, which is in contrast to some other countries.

The Australian Council of Trade Unions (ACTU) has accused the Productivity Commission of "swallowing the arguments of large multinational tech companies hook, line and sinker," warning that the report's suggestions could do little to help working Australians. The ACTU has expressed concern that an exemption for text and data mining could legitimize the theft of creative output and Indigenous cultural and intellectual property.

The Australian Publishers Association (APA) has raised fears that authors, researchers, and publishers could have their work used without permission or compensation, which it says would undermine local publishing and federal government cultural policy. The Copyright Agency has also opposed the text and data mining exemption, stating that it would negatively affect creators' earning capacity.

The government has established a Copyright and AI Reference Group to continue engaging on these issues, but the outcome remains uncertain. The Productivity Commission's report and the ongoing debate highlight the need for a balanced approach that considers the interests of both technology companies and content creators.

References:
[1] https://www.theguardian.com/technology/2025/aug/06/arts-and-media-groups-demand-labor-take-a-stand-against-rampant-theft-of-australian-content-to-train-ai