Australians with HIV will pay a maximum of $39.50 to fill a script for a medication that stops replication of the virus once it becomes subsidised by the federal government, saving them $10,800 each year.
Juluca will be listed on the Pharmaceutical Benefits Scheme on Saturday, meaning the government covers most of its cost.
The medicine is spruiked as the first daily treatment for HIV that involves just two drugs, which are combined into a single pill.
At the moment, daily treatment regimes for HIV involve at least three drugs, according to its manufacturers ViiV Healthcare.
The pharmaceutical company says its studies revealed there is no difference in treatment outcomes with the new medicine and others that include three drugs, which have been prolific since the 1990s.
ViiV Healthcare Australasian medical director Fraser Drummond says the drug is aimed at giving people options and reducing the level of drugs they are consuming.
"Why take more medicines than you need?" Dr Drummond told AAP.
The step comes as the coalition on Thursday launched Australia's eighth national HIV strategy.
It aims to virtually eliminate transmission of the virus, which attacks a body's immune system and can lead to the severe phase AIDS, by 2022.
The plan also sets out to reduce mortality and morbidity rates related to HIV and support those living with the virus, by reducing stigma and discrimination.
There are more than 27,000 people living with HIV in Australia, with 963 new notifications recorded in 2017 - the lowest figure in seven years.
Defeating the HIV virus seemed impossible a few years ago but Australia is now of the cusp of doing just that, Health Minister Greg Hunt says.
"Since the first HIV diagnosis in Australia more than 30 years ago, our understanding around prevention, transmission and treatment of HIV has improved significantly," he said.
Earlier this year the costs for a preventative HIV drug, Pre-Exposure Prophylaxis (PrEP), were also slashed through its listing on the PBS.
