Australia has moved a step further down the path to eliminating HIV.

The cost of HIV-prevention drug PrEP will drop from this week to $39.50 a month or $6.40 for those with a concession card.

PrEP - pre-exposure prophylaxis - is considered a ‘game changer’.

The daily preventative medicine marketed as Truvada is about 99 per cent effective in stopping the spread of HIV.

In trials so far, the drug has already decreased the rate of new infections by 30 per cent in some states.

The drug is now on the Pharmaceutical Benefits Scheme (PBS), with a $180 million federal subsidy putting Australia “in reach of being one of the first countries in the world to end the transmission of HIV”, Health Minister Greg Hunt said.

“PrEP is a medical innovation that will save Australian lives and the decision to list it is one of the most significant advancements in HIV transmission Australia has ever seen,” Mr Hunt said.

“32,000 patients each year will pay a maximum of only $39.50 per script … without subsidy, patients would pay $2,496 per year for this medicine.

“Access to PrEP will not only benefit gay and bisexual men but will also drive down rates of HIV in Aboriginal and Torres Strait Islander peoples, migrant communities and other population groups which have seen increased transmission rates over recent years.”