Rules that restrict new pharmacies from opening near existing pharmacies will be extended for another five years despite numerous government-commissioned reviews recommending they be abolished.

Health Minister Sussan Ley announced on Monday that the rules would be extended until July 2020 as part of an $18.9 billion agreement with the Pharmacy Guild of Australia, which will also allow pharmacists to discount the fee patients pay for prescription drugs by $1 a script from next month.

Ms Ley said the agreement would deliver "cheaper, more affordable medicines for consumers".

For more details, go to: http://www.smh.com.au/federal-politics/political-news/abbott-government-extends-pharmacy-location-rules-for-another-five-years-20150518-gh3zvj.html