About the PBS and co-payments
The PBS is funded by the Australian Government to subsidise the cost of more than 900 prescription medicines. When you buy a medicine listed on the PBS, the cost is shared between you and the government. The cost that you pay that is not covered by the government is called the co-payment. This is the amount you pay the pharmacist for each prescription.
About the freeze on the maximum cost for PBS medicines
On 1 January 2025, the government introduced a freeze on the maximum patient cost for all PBS medicines. This is a freeze on the co-payment you pay for PBS medicines. This means the cost of your PBS medicines is the same rate as it was in 2024 and will not increase with indexation in 2025.
The freeze will be for one year for general patients, which applies to everyone with a Medicare card. There will be a 5-year freeze for pensioners and other Commonwealth concession card holders.
This measure is to help ease cost of living pressures and encourage patients to not delay filling their prescriptions.
Optional $1 discount
The optional $1 discount that pharmacists can apply to the cost of PBS medicines will be gradually reduced from 1 January 2025, while PBS co-payments are frozen. It will decrease by the amount of indexation that would have applied to a patient’s PBS co-payment each year until it reaches zero.
Why medicines differ in price
As of 1 January 2025, the most you will pay for a PBS medicine as a general consumer is $31.60. If you have a concession card, the most you will pay is $7.70. This price is the general PBS patient co-payment.
This is the same maximum patient cost for medicines as in 2024. If a medicine costs less than the general PBS patient co-payment, the amount you will pay can vary between pharmacies.
You might pay more depending on:
- which pharmacy you go to, or
- if you choose a generic medicine or name brand medicine with a brand premium.
If your medicine costs less than the maximum price, you can save money by choosing a generic medicine. Generic medicines act in the same way as brand name medicines, and in many cases are cheaper than brand name medicines. Some name brand medicines have a brand premium, which is an extra amount charged by the medicine manufacturer that is not controlled by the government. This charge does not count toward the PBS Safety Net.
Medicines priced below the PBS co-payment are not subsidised by the government and the prices are not set by the government. These medicines are subject to normal retail pricing, and prices can vary depending on where you go to fill your prescription.
You can speak with your pharmacist about the cost of your prescription and shop around to get the best price.
Benefits
The freeze on co-payments for PBS medicines will benefit all patients, as the maximum patient cost of PBS medicines will stay the same.
If you have a Medicare card but not a concession card, the most you will pay for a PBS medicine is $31.60. This price will not change for one year. $31.60 is the same co-payment that general patients paid in 2024.
If you have a concession card, the most you will pay for a PBS medicine is $7.70. This price will not change for 5 years. This too remains at the same rate as it was in 2024.
Eligibility
The freeze on co-payments for PBS medicines from 1 January 2025 applies to all PBS prescription medicines. You can get PBS medicines if you have both a:
- Medicare card or Commonwealth concession card
- prescription from your doctor or health professional.
The freeze on the maximum patient cost of PBS medicines means patients should not delay filling their prescriptions due to cost concerns.
Eligible Commonwealth concession card holders include anyone with a:
- Commonwealth seniors health card
- health care card
- pension concession card
- Department of Veterans’ Affairs gold, white or orange card.
You can access information and resources about the freeze of the PBS patient co-payment.
More ways to save with 60-day prescriptions
In addition to the freeze of the maximum patient cost for PBS medicines, you may also get access to cheaper medicines through a 60-day prescription.
Almost 300 medicines are available for 60-day prescriptions, meaning you can get twice the medicine on a single prescription. The freeze to co-payments will not change your eligibility for a 60-day prescription. Both changes are helping Australians save time and money.