Pharmaceutical Benefits Scheme (PBS) Australia 2026
About this article
Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
Compare by state
Statute citations are verified per state. Select a state to jump to its full section below.
| Primary statute | |
|---|---|
| New South Wales | Pharmacy Practice Act 2006 (NSW) |
| Queensland | National Health Act 1953 (Cth) — PBS |
| South Australia | National Health Act 1953 (Cth), Part VII — PBS |
| Tasmania | National Health Act 1953 (Cth), Part VII — Pharmaceutical Benefits Scheme |
| Victoria | Pharmacy Regulation Act 2010 (Vic) |
| Western Australia | National Health Act 1953 (Cth) — PBS |
What is this right?
The Pharmaceutical Benefits Scheme (PBS) subsidises the cost of most prescription medicines in Australia. It runs under Part VII of the National Health Act 1953, administered by Services Australia, and is one of the longest-running federal subsidy programs.
You pay a maximum co-payment per prescription:
- General patients: up to $25.00 per script (cut from $31.60 on 1 January 2026 under the National Health Amendment (Cheaper Medicines) Act 2025; indexed again from 1 January 2027)
- Concession card holders: up to $7.70 per script (frozen at this rate)
The PBS Safety Net kicks in once your total PBS spending in a calendar year crosses a threshold:
- General patients: after $1,748.20 (2026), the co-payment drops to the concession rate for the rest of the year
- Concession card holders: after $277.20 (2026), PBS medicines become free for the rest of the year
Not every medicine sits on the PBS. A medicine has to be assessed by the Pharmaceutical Benefits Advisory Committee (PBAC) and listed on the PBS Schedule before it gets subsidised — and that listing process is where most of the slow public debates about new and expensive drugs play out.
When does it apply?
- You hold a valid Medicare card.
- Your doctor prescribes a medicine that is listed on the PBS Schedule.
- If you hold a Pensioner Concession Card, Health Care Card, or Commonwealth Seniors Health Card, you pay the lower concession co-payment.
What to Do If Your Prescription Medicine Is Too Expensive Under the PBS in Australia
- Present your Medicare card and any concession card at the pharmacy when filling a PBS prescription.
- Ask your pharmacist if a cheaper brand (generic) of your medicine is available on the PBS — the active ingredient is the same.
- Keep records of every PBS prescription you fill to track your progress toward the Safety Net threshold.
- Register your family as a Safety Net family through Services Australia so all family members' prescriptions count toward the same threshold.
- Request a Safety Net card once you reach the threshold — your pharmacist can help you apply.
What should you NOT do?
- Don't assume every medicine is subsidised — only medicines listed on the PBS Schedule are covered.
- Don't forget your concession card at the pharmacy — without it, you will be charged the general co-payment.
- Don't stockpile medicines — PBS rules generally limit you to one month's supply per prescription.
- Don't throw away receipts — you need them to prove your spending if applying for the Safety Net.
About Healthcare Rights in Australia
If you're an Australian citizen, permanent resident, or eligible visa holder, Medicare (under the Health Insurance Act 1973) covers public hospital care and subsidises GP visits. The Pharmaceutical Benefits Scheme (under the National Health Act 1953) caps what you pay per script. The Australian Charter of Healthcare Rights covers informed consent, access to records, and complaints. The Aged Care Act 2024 rewrote aged-care standards. Mental health sits with the states, but Medicare's Better Access rebates roughly 10 psychology sessions a year.
Worked Examples
ScenarioYou fill a regular PBS-listed script for high blood pressure medication in January 2026, without a concession card.
OutcomeFrom 1 January 2026 the general PBS co-payment is capped at $25.00 per script. So you pay no more than $25.00 — and the Commonwealth subsidises the rest of the medicine's cost. If your script is actually cheaper than $25, you pay the lower price; many common medicines also have brand-discount or generic options.
Verified against pbs.gov.au and the Department of Health: $25.00 general co-payment from 1 January 2026 under the Cheaper Medicines Act 2025. Educational information, not medical or legal advice.
Common Questions
How much do I pay for a PBS prescription?
From 1 January 2026, the maximum general patient co-payment is $25.00 per PBS script. If your script costs less than that, you pay the lower price. The concessional co-payment (for people with eligible concession cards) is $7.70, and is frozen at that level until 2030.
What is the PBS Safety Net?
Once your eligible out-of-pocket spending on PBS medicines in a calendar year reaches the Safety Net threshold, the cost of further PBS scripts drops — concession cardholders pay nothing, and general patients pay only the concessional co-payment. Thresholds are reviewed each year.
Are all medicines on the PBS?
Only medicines listed on the PBS schedule are subsidised. The schedule is updated regularly; if a medicine isn't listed, you pay the private (non-PBS) price. Your doctor and pharmacist can tell you whether a medicine is PBS-listed and whether there are PBS-listed alternatives.
Can pharmacists give a discount?
Yes. From 1 January 2026, pharmacists may choose to discount the concessional co-payment by up to 60 cents. The maximum general co-payment may also be undercut by competitive pricing. The base PBS subsidy applies regardless of any discount.
What is the pharmaceutical benefits scheme (pbs) right in Australia?
The Pharmaceutical Benefits Scheme (PBS) subsidises the cost of most prescription medicines in Australia. It runs under Part VII of the National Health Act 1953, administered by Services Australia, and is one of the longest-running federal subsidy programs.You pay a maximum co-payment per prescription:General patients: up to $25.00 per script (cut from $31.60 on 1 January 2026 under the National Health Amendment (Cheaper Medicines) Act 2025; indexed again from 1 January 2027)Concession card holders: up to $7.70 per script (frozen at this rate)The PBS Safety Net kicks in once your total PBS...
When does pharmaceutical benefits scheme (pbs) apply?
You hold a valid Medicare card.Your doctor prescribes a medicine that is listed on the PBS Schedule.If you hold a Pensioner Concession Card, Health Care Card, or Commonwealth Seniors Health Card, you pay the lower concession co-payment.
What should I do if my prescription costs more than expected or is not covered by the PBS in Australia?
Present your Medicare card and any concession card at the pharmacy when filling a PBS prescription.Ask your pharmacist if a cheaper brand (generic) of your medicine is available on the PBS — the active ingredient is the same.Keep records of every PBS prescription you fill to track your progress toward the Safety Net threshold.Register your family as a Safety Net family through Services Australia so all family members' prescriptions count toward the same threshold.Request a Safety Net card once you reach the threshold — your pharmacist can help you apply.
What mistakes should I avoid with pharmaceutical benefits scheme (pbs)?
Don't assume every medicine is subsidised — only medicines listed on the PBS Schedule are covered.Don't forget your concession card at the pharmacy — without it, you will be charged the general co-payment.Don't stockpile medicines — PBS rules generally limit you to one month's supply per prescription.Don't throw away receipts — you need them to prove your spending if applying for the Safety Net.
State-by-state details
New South Wales
Primary statute: Pharmacy Practice Act 2006 (NSW)
The Pharmaceutical Benefits Scheme (PBS) is a federal program, but NSW pharmacies dispense PBS-listed medicines and NSW Health operates hospital pharmacy services that provide additional subsidised access.
- NSW has the largest number of community pharmacies in Australia (over 2,500). Most are approved PBS suppliers and can dispense subsidised medicines.
- NSW public hospitals provide discharge medicines to patients at PBS-equivalent prices or free of charge under the NSW Health pharmaceutical supply framework.
- The NSW Needle and Syringe Program and Opioid Treatment Program provide additional pharmaceutical services through community pharmacies and NSW Health clinics for people with drug dependencies.
- Rural and remote NSW communities access PBS medicines through the Section 100 Remote Area Aboriginal Health Services supply arrangements and through Rural and Remote Pharmacy initiatives.
Queensland
Primary statute: National Health Act 1953 (Cth) — PBS
The PBS is a federal program. Queensland has additional state medication programs and pharmacy services that complement the PBS.
- Queensland Health operates a pharmaceutical supply program for public hospital patients, including outpatient medications dispensed directly by hospital pharmacies.
- The Medicines and Poisons Act 2019 (Qld) and the Health (Drugs and Poisons) Regulation 1996 (Qld) regulate the supply of medicines and poisons in Queensland, including scheduling and pharmacist dispensing requirements.
- Queensland has specific programs for opioid treatment (methadone and buprenorphine) administered through Queensland Health's Alcohol and Drug Service, with treatment available through authorised prescribers and pharmacies.
- Remote and rural pharmacies in Queensland may face supply challenges. Queensland Health works with the Rural Pharmacy Maintenance Allowance and the Pharmacy Access Program to maintain pharmacy services in underserved areas.
South Australia
Primary statute: National Health Act 1953 (Cth), Part VII — PBS
The Pharmaceutical Benefits Scheme (PBS) is a federal program that subsidises the cost of prescription medicines for SA residents. The scheme is administered by Services Australia under the National Health Act 1953 (Cth).
- SA residents with a Medicare card can access PBS medicines at subsidised prices — currently up to $25.00 per script for general patients (cut from $31.60 on 1 January 2026) or $7.70 for concession card holders.
- SA has a network of community pharmacies, including in regional areas where the Pharmacy Rural Incentive Program helps maintain pharmacy services in underserved communities.
- SA Health operates hospital pharmacies that provide PBS and non-PBS medicines to inpatients and outpatients of SA public hospitals.
- The Safety Net threshold means that once a family reaches the annual expenditure cap ($1,748.20 for general patients in 2026), further PBS scripts are free or heavily discounted for the rest of the calendar year.
Tasmania
Primary statute: National Health Act 1953 (Cth), Part VII — Pharmaceutical Benefits Scheme
The Pharmaceutical Benefits Scheme (PBS) is a federal program that subsidises the cost of prescription medicines for Tasmanian residents, administered by Services Australia under the National Health Act 1953 (Cth).
- Tasmanian residents with a Medicare card can access PBS medicines at subsidised prices — currently up to $25.00 per script for general patients (cut from $31.60 on 1 January 2026) or $7.70 for concession card holders.
- Tasmania's community pharmacy network includes pharmacies in smaller rural towns, supported by the Pharmacy Guild and government programs to maintain services in underserved areas.
- The Tasmanian Health Service operates hospital pharmacies providing PBS and non-PBS medicines to inpatients and outpatients.
- The Safety Net threshold means once a family reaches the annual expenditure cap, further PBS scripts are free or heavily discounted for the rest of the calendar year.
Victoria
Primary statute: Pharmacy Regulation Act 2010 (Vic)
The PBS is a federal program. Victoria has over 2,000 community pharmacies dispensing PBS medicines, plus public hospital pharmacies and state-funded pharmaceutical services.
- Victorian public hospitals provide discharge medicines and outpatient pharmacy services, often at PBS-equivalent prices or free of charge for public patients.
- Victoria's Pharmacotherapy Program (opioid substitution therapy — methadone and buprenorphine) is delivered through community pharmacies and public health services. Victoria has the most extensive pharmacotherapy network in Australia.
- The Pharmacy Regulation Act 2010 (Vic) regulates pharmacy ownership, operations, and professional standards in Victoria.
- Victoria funds public dental pharmacare — patients attending Victorian public dental clinics can receive prescribed medications as part of their treatment at reduced or no cost.
Western Australia
Primary statute: National Health Act 1953 (Cth) — PBS
The PBS is a federal program. WA has additional state medication programs and pharmacy services that complement the PBS, particularly for remote and regional areas.
- WA Health operates a pharmaceutical supply program for public hospital patients, including outpatient medications dispensed directly by hospital pharmacies.
- The Medicines and Poisons Act 2014 (WA) regulates the supply of medicines and poisons in WA, including scheduling, pharmacist dispensing, and poisons handling.
- WA's remote Aboriginal communities face particular challenges accessing PBS medicines. The Section 100 program under the National Health Act provides for the supply of PBS medicines through Aboriginal Medical Services without the usual co-payment requirements.
- WA has specific programs for opioid treatment (methadone and buprenorphine) administered through the WA Department of Health's Mental Health Commission, with treatment available through authorised prescribers and pharmacies.
Pharmaceutical Benefits Scheme (PBS) in other states
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