After months of stalling, the federal government finally approved the inclusion of six drugs to the Pharmaceutical Benefits Scheme (PBS) that provides state subsidies for the medicines that are normally used for life-threatening medical conditions such as cancer, heart failures and tuberculosis.

In a statement, Prime Minister Julia Gillard said on Friday that the new PBS listings are projected to benefits some 160,000 Australians, including infants, toddlers and young children suffering from debilitating diseases.

Ms Gillard admitted that government action on the matter was fraught with delays due to budget constraints but recent savings realised by the government and a corresponding endorsement coming from the Pharmaceutical Benefits Advisory Committee (PBAC) proved helpful in making the decision at this time.

Previously, the Labor-led government had dilly-dallied on the move and even deferred the PBS listing of seven drugs despite growing health experts' sentiments that Australians should be given reasonable access to the medicines through government subsidies.

The Australian reported that Ms Gillard gave her go signal on one of the drugs June this year, with the six other joining the PBS list as announced today, leaving the full PBS roll at 48 medicines as per the government directive.

In announcing her latest health initiative, Ms Gillard vowed that future PBS decisions will be guided by sufficient dialogues with stakeholders in order to further strengthen the government-funded program while at the same time "keeping costs to a reasonable level."

"The government, industry and consumer groups agreed to work together to discuss ways to manage deferrals into the future," the Prime Minister was reported as saying by The Australian in revealing likely negotiations with industry interest groups, the Generic Medicines Industry Association and Medicines Australia.

Along with the new listings, Ms Gillard issued assurance that no PBAC-recommended drugs will be deferred in the next 12 months provided their costs would not exceed $10 million each year.

Also, the government will open its doors on future medicine price advisories that the Pharmaceutical Benefits Pricing Authority will forward for consideration, Ms Gillard said.

Consumers Health Forum of Australia chief executive Carol Bennett lauded the government for its action, which it said brings with it a blanket of certainty for Australians requiring benefits of the PBS program.

"This is a good example of the government entering into a productive dialogue and working to achieve a positive outcome for the Australian community," Bennett said in a statement.