Australians are now paying less for many prescription medicines as a result of the Australian Government’s reduced Pharmaceutical Benefits Scheme (PBS) general patient co-payment, which took effect at the beginning of this year.
Following the change, the maximum cost of a PBS medicine for Medicare card holders fell from $31.60 to $25 per prescription. The reduction applies to all eligible PBS medicines throughout 2026, with future increases to be indexed annually in line with the consumer price index.
The change marks the lowest PBS general co-payment since 2004, when patients paid $23.70. The government says the measure is designed to make medicines more affordable and reduce the risk of people delaying or skipping prescriptions because of cost.
Commonwealth concession card holders will continue to pay a maximum of $7.70 per PBS prescription. That amount has been frozen since 1 January 2025 and will remain unchanged until 1 January 2030, providing certainty about medicine costs for concession card holders.
Savings for patients will depend on how many prescriptions they fill. An adult filling two PBS prescriptions each month is expected to save $158.40 a year, while someone filling three prescriptions a month would save $237.60 annually. Nationally, the government estimates the co-payment reduction will save Australians more than $200 million each year.
Minister for Health and Ageing, Mark Butler, said the reduction represents a significant cut to the cost of medicines.
“Along with Medicare, the PBS is a cornerstone of Australia’s health system,” Minister Butler said.
“It supports affordable access to more than 900 subsidised prescription medicines.
“The last time Australians paid no more than $25 for a PBS medicine was more than 20 years ago. This is just one of our cheaper medicine reforms that are helping more Australians access essential medications for a range of health conditions.
“No one should go without filling a script they need because of cost,” Minister Butler added.
The co-payment reduction applies to anyone with a Medicare card or Commonwealth concession card who has a prescription from a doctor or other authorised health professional. Eligible concession card holders include people with health care cards, pension concession cards, Commonwealth Seniors health cards, PBS Safety Net cards and Department of Veterans’ Affairs cards, among others.
The government has also confirmed the optional $1 discount that pharmacists can apply to PBS medicines will be phased out. For Medicare card holders, this discount has already been removed. For concession card holders, it will be reduced gradually each year until it reaches zero in 2030.
Prescription prices may still vary between pharmacies. Patients may pay more if they choose a brand-name medicine with a brand premium, which is charged on top of the PBS co-payment and does not count towards the PBS Safety Net. Medicines that cost less than the maximum co-payment are subject to normal retail pricing, which can differ between pharmacies.
Further savings may be available through 60-day prescriptions, which allow eligible patients with stable, ongoing health conditions to receive double the usual quantity of certain PBS medicines on a single prescription. Patients using only 60-day prescriptions could save up to $150 a year per medicine if they are Medicare card holders without a concession card, or up to $46.20 a year per medicine for concession card holders, depending on the medicine and whether any brand premiums apply.
The government says 60-day prescriptions do not increase the risk of medicine shortages, with eligible medicines assessed as having adequate supply. Measures including advance shortage notifications to the Therapeutic Goods Administration, onshore stock requirements for some medicines and 24-hour delivery obligations for wholesalers are intended to support ongoing medicine availability.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your personal health requirements or existing medical conditions. That means it’s not personalised health advice and shouldn’t be relied upon as if it is. Before making a health-related decision, you should work out if the info is appropriate for your situation and get professional medical advice.