The Federal Government has decided to fund nicotine patches through the Pharmaceutical Benefits Scheme.
From February next year, concession card holders will be able to access subsidised patches to help them quit smoking.
Health Minister Nicola Roxon says it is part of the Government's plan to cut smoking rates.
"Our estimate is about 70,000 extra Australians will give up smoking because of this decision that's been made," she said.
"The good news of course is that low income Australians - when they kick their habit of smoking - will have that money in their hip pockets instead."
Ms Roxon says the move will encourage those who need help with quitting.
"This is about providing assistance for those who want to give up but are addicted and need some extra help to be able to take that next step, whether it's ringing Quitline and getting some advice and encouragement, or now going to see your doctor and being able to get nicotine patches at a cheaper rate if you're a concession card holder," she said.
The Government has also decided to fund the drug, Soliris, through the Life Saving Drugs Program.
The medication treats a rare blood disorder and costs hundreds of thousands of dollars per patient per year.
Ms Roxon says 73 people suffer from the life-threatening medication condition.
"It's very expensive for an individual patient to find hundreds of thousands of dollars, but the Government does have a program to be able to fund such drugs provided they do extend life significantly and this has met that requirement," she said.
