Lyla Lindsey
Australia's Pharmaceutical Benefits Scheme (PBS) has been in place since 1948, offering safe and affordable medicines to all Australians. The scheme is also available to overseas visitors from countries with a Reciprocal Health Care Agreement with Australia. While prescriptions in Australia are not free, the PBS helps to subsidise the cost of medication, with the government covering part of the cost. This makes medication more accessible to those who need it. The PBS safety net provides additional support to those who require a lot of medication, and there are also concession cards available for those who are eligible.
| Characteristics | Values |
|---|---|
| Prescription charges for Australians | Not free, but subsidised by the government under the Pharmaceutical Benefits Scheme (PBS) |
| Cost of prescriptions | From 1 January 2025, up to $31.60 for most PBS medicines, or $7.70 with a concession card |
| Discounts | Pharmacists may offer discretionary discounts |
| Safety Net | If you spend a lot on medicines, you may be able to apply for the PBS Safety Net, which offers further discounts or free medicines for concession cardholders |
| Reciprocal agreements | Visitors from certain countries with reciprocal health care agreements are covered by the PBS |
| Electronic prescriptions | Available as an alternative to paper prescriptions |
| 60-day prescriptions | Available for some medicines |
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What You'll Learn
The Pharmaceutical Benefits Scheme (PBS)
The PBS limits the amount of PBS-listed medicine in a prescription and the number of repeat prescriptions before a patient must be re-examined by their doctor. Doctors need approval from Services Australia or the Department of Veterans' Affairs to prescribe certain medicines. The PBS safety net provides additional support to those who need lots of medicines. Once a patient reaches a spending limit, called the Safety Net threshold, the cost of their medicines will be reduced or free for the rest of the calendar year.
The PBS can also be accessed by overseas visitors from countries with which Australia has a Reciprocal Health Care Agreement (RHCA). Currently, these countries include the United Kingdom, Ireland, New Zealand, Malta, Italy, Sweden, the Netherlands, Finland, Norway, Belgium, and Slovenia. Residents of these countries must show their passports or their RHCA card to prove their eligibility when getting a prescription filled.
The PBS helps Australians get necessary prescribed medicines at a lower cost. Instead of paying the full price, the government subsidises part of the cost of the medicine through the PBS. The amount patients pay depends on the medicine and their situation. For instance, concession cardholders pay a lower price for PBS-subsidised medicines. From 1 January 2025, patients may pay up to $31.60 for most PBS medicines, or $7.70 if they have a concession card.
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Concessions and Safety Net
The Pharmaceutical Benefits Scheme (PBS) offers affordable medicines to all Australians. The PBS has been in existence since 1948 and is governed by the National Health Act 1953 (Commonwealth). The Scheme is available to all Australian residents with a current Medicare card. Overseas visitors from countries with Reciprocal Health Care Agreements (RHCA) with Australia are also eligible to access the Scheme.
Concessions
From 1 January 2025, you may pay up to $31.60 for most PBS medicines, or $7.70 if you have a concession card. The concessional patient co-payment will remain at $7.70 for five calendar years from 2025 to 2029. The concessional co-payment amount will be adjusted on 1 January each year from 2030 in line with movements in the Consumer Price Index (CPI). After reaching the Safety Net threshold, concession cardholders are dispensed PBS prescriptions at no further charge for the remainder of that calendar year.
Safety Net
Once you or your family spend a certain amount on PBS medicine, you will reach the PBS Safety Net threshold. The threshold is calculated in a calendar year and usually resets at the beginning of each year, on 1 January. On 1 January 2025, the PBS Safety Net thresholds were: $277.20 for patients with a concession card and $1,694.00 for other eligible patients. After reaching the threshold, general patients pay for further PBS prescriptions at the concessional co-payment rate. To access the Safety Net arrangements, you need to maintain records of your PBS, RPBS, and non-PBS public outpatient medicine expenditure on a Prescription Record Form (PRF).
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Reciprocal Health Care Agreements
In Australia, the Pharmaceutical Benefits Scheme (PBS) offers safe and affordable medicines to all Australians. The PBS has been in existence since 1948 and is governed by the National Health Act 1953 (Commonwealth). The Scheme is available to all Australian residents who hold a current Medicare card.
Under the PBS, the Australian government subsidises many medicines to help make them more affordable. The amount of subsidy depends on whether the patient is a general patient or a concession cardholder. The PBS safety net provides additional support to those who need a lot of medicines. Once the safety net threshold is reached in a calendar year, further PBS prescriptions are provided at the concessional co-payment rate, and concession cardholders receive PBS prescriptions at no further charge for the rest of that calendar year.
Overseas visitors from countries with which Australia has a Reciprocal Health Care Agreement (RHCA) are also eligible to access the PBS. Australia currently has RHCAs with 11 countries: the United Kingdom, Ireland, New Zealand, Malta, Italy, Sweden, the Netherlands, Finland, Norway, Belgium, and Slovenia. Residents of these countries must show their passports when lodging a prescription to prove their eligibility or they can contact Services Australia and get a Reciprocal Health Care Agreement Card.
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Electronic prescriptions
While prescriptions in Australia are not free, the government does subsidise many medications under the Pharmaceutical Benefits Scheme (PBS). The PBS has been in existence since 1948 and is available to all Australian residents with a current Medicare card. The scheme also covers overseas visitors from countries with which Australia has a Reciprocal Health Care Agreement (RHCA). These include the United Kingdom, Ireland, New Zealand, Malta, Italy, Sweden, the Netherlands, Finland, Norway, Belgium, and Slovenia.
Under the PBS, patients pay a lower price for their medication, while the government covers the rest. The amount paid depends on whether the patient is a general patient or concession cardholder. The PBS safety net provides additional support to those who need lots of medicines. Once a patient reaches the safety net threshold in a calendar year, their medicine is free for the rest of that year.
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60-day prescriptions
In Australia, the cost of medicines is subsidised by the government under the Pharmaceutical Benefits Scheme (PBS) to keep them affordable for all Australians. The PBS has been in existence since 1948 and is available to all Australian residents with a current Medicare card.
Under the PBS, patients pay a lower price for their medicine, while the government covers the rest. The amount covered by the government depends on whether the patient is a general patient or a concession cardholder. From 1 January 2025, general patients may pay up to $31.60 for most PBS medicines, while concession cardholders may pay up to $7.70.
The PBS Safety Net provides additional support to those who require a lot of medicine. Once a patient reaches the Safety Net threshold in a calendar year, their medicine will be free for the rest of that year.
To further reduce the cost of medicines, the Australian Government introduced 60-day prescriptions in 2023. This allows patients to receive twice the medication on a single prescription. The 60-day prescriptions were introduced gradually in three stages over 12 months, with the first stage introduced on 1 September 2023, the second stage on 1 March 2024, and the third stage on 1 September 2024.
The Pharmaceutical Benefits Advisory Committee (PBAC) recommends that a patient's condition must be stable and suitable for the increased maximum dispensed quantity measure. Doctors will continue to decide the quantity of medicine prescribed for their patients based on their assessment of their patients' conditions. Most medicines recommended by PBAC for 60-day prescriptions are not in short supply in Australia. However, if shortages do occur, alternative brands and/or strengths of the same medicine are usually available.
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Frequently asked questions
Prescriptions are not free in Australia, but there are ways to reduce the cost.
The Pharmaceutical Benefits Scheme (PBS) offers safe and affordable medicines to all Australians. The scheme is available to all Australian residents who hold a current Medicare card. The amount you pay depends on the medicine, and whether you are a general patient or concession cardholder.
The PBS has been in existence since 1948 and is governed by the National Health Act 1953 (Commonwealth). The scheme helps Australians get necessary prescribed medicines at a lower cost. Instead of paying the full price, the government helps cover part of the cost.
If a medicine is found to be acceptably cost-effective for the extra health benefits it provides, the Australian Government will negotiate to list it on the PBS. You can find a full list of medicines the PBS subsidises on the Australian Government Department of Health and Aged Care website.
If your medicine is not covered by the PBS, you will pay the full price. However, you may be able to apply for the PBS Safety Net, which provides additional support to those who need a lot of medicine.
