PBS co-payments, concessions and the Safety Net explained

Every time you fill a prescription in Australia, three factors decide what you hand over at the counter: whether the medicine is on the Pharmaceutical Benefits Scheme, whether you hold a concession card, and how much your household has already spent on medicines this year. The same medicine that costs the full co-payment in January can cost far less, or nothing, once your household passes the Safety Net threshold later in the year.

The Pharmaceutical Benefits Scheme (PBS) is the federal program that subsidises most prescription medicines, so you pay a capped co-payment while the government pays the rest (What are the current patient fees and charges, PBS). This guide sets out the 2026 amounts, who qualifies for the lower rate, and how the Safety Net reduces your costs once your yearly spending is high enough.

Source: 2026 figures from current patient fees and charges, PBS.

What the PBS is, and why it caps your costs

The PBS caps what you pay for most prescription medicines. The Australian Government pays most of the cost of a listed medicine and you pay a fixed co-payment, which is why a script that would otherwise run to hundreds of dollars costs a set amount at the counter (What are the current patient fees and charges, PBS). Many PBS medicines cost far more than the co-payment; the subsidy is the difference.

If a medicine is not listed on the PBS, it is a private prescription and the pharmacy charges the full price that the manufacturer and pharmacy set. You can look up whether a medicine is listed at pbs.gov.au. Our prescriptions in Australia guide covers how scripts work from end to end, and our PBS explained guide goes deeper on how listing and subsidy work.

What you pay per script in 2026

From 1st January 2026 a general patient pays up to $25.00 for most PBS medicines and a concession card holder pays $7.70 (What are the current patient fees and charges, PBS). That $25.00 cap is a reduction, down from $31.60 the year before (What are the current patient fees and charges, PBS). The concession rate of $7.70 is not indexed in 2026 and stays at that amount until 2029, then adjusts with inflation again from 1st January 2030, so concession holders keep the same price for several years (What are the current patient fees and charges, PBS).

Here is the gap between the two 2026 rates.

Source: 2026 co-payment amounts from current patient fees and charges, PBS.

If a medicine's price is lower than your co-payment, you pay the lower actual price rather than the full cap. The PBS notes this is common with some generics, and a pharmacist may add a small allowable fee that cannot push the total above the co-payment (What are the current patient fees and charges, PBS). Pharmacists can also choose to discount an eligible general script priced between $25.00 and $51.10, though the PBS states that is at the pharmacist's discretion rather than a guarantee (What are the current patient fees and charges, PBS).

Which concession cards get the $7.70 rate

The lower $7.70 co-payment applies if you hold a valid concession or veteran card and show it when the script is dispensed. These are the main cards that qualify.

Show the card at every fill and the pharmacy applies the concessional rate at the counter, with no separate paperwork. If you were eligible but did not show the card, Services Australia says you can claim the difference back through its patient refund process, so long as you keep the paid receipt (Getting a refund when you don't have your cards, Services Australia). Our concession card pharmacy savings guide covers who qualifies in more detail.

At the counter

The card does the work on the spot

Hand it over at every fill and the pharmacy applies the $7.70 rate immediately, so there is no form to lodge and nothing to claim back later.

How the PBS Safety Net lowers your costs mid-year

The PBS Safety Net caps what one household spends on medicines across a calendar year, so your scripts get cheaper or free once you have spent enough. When your family's eligible PBS spending reaches the threshold, general patients drop to the concession rate for the rest of the year and concession holders pay nothing further (What are the current patient fees and charges, PBS).

Across a calendar year the Safety Net moves through four stages.

Source: 2026 Safety Net figures from current patient fees and charges, PBS.

For 2026 the general threshold is $1,748.20 and the concession threshold is $277.20, each measured per family unit across the calendar year (What are the current patient fees and charges, PBS). The table below shows what changes once you pass it.

The count runs to 31st December and starts fresh on 1st January, so the Safety Net does not carry into the next year.

What counts towards the Safety Net, and what does not

Most PBS scripts count towards your Safety Net total, though a few costs do not. What counts is the co-payment you pay on each PBS medicine, plus the Safety Net recording fee charged on medicines priced below the co-payment (What are the current patient fees and charges, PBS).

What does not count towards the threshold:

• The brand premium you pay for choosing a more expensive brand when a cheaper equivalent exists
• Private prescriptions that are not PBS-listed
• Over-the-counter medicines you buy without a prescription, like most paracetamol
• The therapeutic group premium on certain medicines

If you are unsure whether a medicine counts, the pharmacist can tell you before dispensing, or you can check your running total on your record form.

How to track your spending across pharmacies

Scripts filled at different pharmacies all count towards the same Safety Net total, but the tally is not added up automatically across pharmacies. To claim the Safety Net you keep the record yourself, and Services Australia sets out two main ways to do it (Keep track of your PBS medicines, Services Australia).

The first is the Prescription Record Form. To use the Safety Net you keep a record of your PBS medicine spending on a Prescription Record Form, which pharmacies can hold and update each time they dispense for you (What are the current patient fees and charges, PBS). If your family fills scripts at more than one pharmacy, ask each to record the fills, or download the form and ask a pharmacist to add recent scripts (Safety Net record form and card application PB240, Services Australia).

The second works if you use one pharmacy for everything. Services Australia says a single pharmacy can keep a computer record of your PBS spending and let you know when you are close to the threshold (Keep track of your PBS medicines, Services Australia). Our Safety Net card application guide walks through both routes.

How to get your Safety Net card

Once your family passes the threshold, the pharmacy that dispenses the script that takes you past it can issue your Safety Net card there and then, so you do not apply separately (What are the current patient fees and charges, PBS). You then show the card at every fill for the rest of the year.

If the threshold was passed but no card was issued, for example because your fills were split across pharmacies, you can apply using the PB240 form, online through your Medicare online account, or at a service centre (PBS Safety Net card application, Services Australia). Services Australia backdates the card to the date you reached the threshold, so you can claim the difference on any scripts filled in between.

Extra help for Aboriginal and Torres Strait Islander people

Aboriginal and Torres Strait Islander people can get PBS medicines even cheaper through the Closing the Gap (CTG) PBS Co-payment Program. The Australian Government advises that an eligible person who normally pays the general rate instead pays the concession rate of $7.70, and an eligible person who already holds a concession card pays nothing for their PBS medicines (Closing the Gap concession, Department of Health, Disability and Ageing).

A PBS prescriber or an eligible Aboriginal Health Practitioner registers you once, and after that the lower price applies to your eligible PBS scripts (Closing the Gap PBS Co-payment Program, PBS). The program covers medicines listed on the PBS and does not extend to over-the-counter or non-PBS medicines.

Why the same script can cost different amounts at different pharmacies

For a standard PBS co-payment the price is the same wherever you go, so most people pay $25.00 or $7.70 regardless of the pharmacy. Differences arise in three cases: a brand premium on a more expensive brand, a private price the pharmacy sets on a non-PBS medicine, or a medicine priced below the co-payment, where the real price can vary and a pharmacist may discount (What are the current patient fees and charges, PBS). Our script cost comparison guide shows how to compare safely, and our private versus PBS guide explains the private side.