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 price you pay for PBS medicines that’s not covered by the government is called the co-payment. This is the amount you pay at the pharmacy for each prescription. You may also pay a brand premium in addition to the co-payment.
Changes to PBS co-payments and medicine costs
From 1 January 2026, the maximum cost for PBS medicines for Medicare card holders is $25, down from $31.60. This is due to a reduction of the PBS co-payment, or the amount you pay for a prescription.
The reduced maximum patient co-payment for PBS medicines will be $25 per prescription throughout 2026. After this, the cost of prescriptions will be indexed in line with the consumer price index each year. The co-payment reduction applies to everyone with a Medicare card. If you have a Commonwealth concession card, the maximum co-payment for a PBS prescription medicine will continue to be $7.70 until 1 January 2030. This is due to a freeze on increases to the concessional co-payment.
These measures are intended to make PBS medicines more affordable so you can fill your prescriptions without delay due to cost.
Optional $1 discount phase-out
The optional $1 discount that pharmacists can apply to PBS medicines is being phased out. For Medicare cardholders, it will be removed from 1 January 2026. For concession cardholders, it will continue to reduce gradually each year until it reaches zero in 2030. Speak with your pharmacist about the cost of your prescription and shop around, including online, to find the best price.
PBS co-payment eligibility
The PBS co-payment reduction applies to PBS medicines from 1 January 2026. You can get PBS medicines if you have a:
- Medicare card or Commonwealth concession card, and
- prescription from your doctor or health professional.
The reduced co-payment means you shouldn’t need to delay filling your prescriptions due to cost concerns.
If you have a concession card, the maximum cost for a PBS prescription will remain $7.70 until 2030. Eligible Commonwealth concession card holders include anyone with a:
- Commonwealth seniors health card
- health care card
- pension concession card
- ex-carer allowance (child) health care card
- foster child health care card
- low income health care card
- PBS Safety Net card
- Department of Veterans’ Affairs gold, white or orange card.
More ways to save with 60-day prescriptions
You can also access cheaper medicines with 60-day prescriptions. 60-day prescriptions are available for a range of PBS medicines for people with stable, ongoing conditions and a 60-day prescription from their doctor.
You can get twice the medicine on a single prescription if you have a 60-day prescription. If you only take 60-day prescriptions you could halve your trips to the doctor and pharmacy.
Patients with a 60-day prescription for a PBS medicine may save up to:
- $150.00 a year per medicine for Medicare card holders who do not have a concession card
- $46.20 a year per medicine for concession card holders.
The saving will be less where:
- the cost of the PBS medication is below the maximum patient co-payment of $25 for general patients or $7.70 for concession card holders additional brand premiums apply.
The maximum 60-day prescription cost is:
- not the same as for a one-month supply
- usually cheaper than buying two 30-day prescriptions.
Read more about PBS medicine pricing comparing 30-day and 60-day prescriptions.
Why medicines differ in price
The price you pay for your prescription medicine can vary between pharmacies.
You might pay more depending on:
- which pharmacy you go to, or
- if you choose a generic medicine or medicine with a brand premium.
Some name brand medicines have a brand premium, which is an extra amount charged by the medicine manufacturer. If you choose a medicine with a brand premium, you will pay the premium on top of the co-payment. This charge does not count toward your PBS Safety Net.
You can save money by choosing a generic medicine. Generic medicines act in the same way as brand name medicines and are cheaper in most cases.
If your medicine costs less than the full co-payment amount, the medicine is subject to normal retail pricing. Prices can vary depending on where you go to fill your prescription.
The price you pay can also be different if you have a 30-day or 60-day prescription. Read more about PBS Medicine Prices for 30-and-60-day prescriptions.