General information
This guide is general information, not personal medical advice, and may change over time. Always check anything that affects you with your pharmacist or GP. In an emergency, call 000.
The Pharmaceutical Benefits Scheme subsidises more than 900 medicines for Australian residents. In 2026, you pay $25.00 per script if you're a general patient, or $7.70 if you hold a concession card. Once your family's PBS spending crosses $1,748.20 in a calendar year ($277.20 for concession cardholders), the Safety Net kicks in and your medicines drop to a lower rate or become free for the rest of the year. The rest of this page explains how it works, what counts toward the threshold, and the bits most people get wrong.
Key facts
- Pillar covers PBS co-pay, concessions, Safety Net, brand premium, generics, 60-day scripts, script cost variation, receipts, and DVA.
- 2026 PBS co-pay: $25 general, $7.70 concession (held to 2029 under Cheaper Medicines reforms).
- 2026 Safety Net thresholds: $1,748.20 general; $277.20 concession; per family per calendar year.
- Safety Net is per family: you, partner, and dependent children under 16 (or under 25 if full-time student).
- Brand premiums and private scripts do not count toward Safety Net.
This pillar covers the federal rules. Cluster guides cover the application steps, the edge cases, and the tax angle.
What the Pharmaceutical Benefits Scheme is
The PBS is the federal medicines subsidy program. The Department of Health, Disability and Ageing lists eligible medicines, sets the prices, and pays the difference between the price you pay at the pharmacy and the medicine's actual cost. Without the PBS, many medicines would cost hundreds or thousands of dollars per script. With the PBS, the most you pay per script is capped.
The list of subsidised medicines is at pbs.gov.au. It's updated monthly. A medicine added to the PBS is "PBS-listed"; a medicine not on the list, or a script written outside the PBS criteria, is a "private prescription".
The PBS only covers medicines dispensed in the community pharmacy setting. Hospital inpatient medicines are funded separately. Certain high-cost medicines run through specialised programs (the Highly Specialised Drugs Program, the Life Saving Drugs Program).
General versus concessional co-payment
What you pay at the counter for a PBS-listed medicine depends on whether you hold a recognised concession card.
General co-payment. $25.00 per script in 2026. Down from $31.60 in 2023, following the federal government's Cheaper Medicines reforms. Applies to anyone without a recognised concession card.
Concessional co-payment. $7.70 per script in 2026. Held at $7.70 until 2029 under the same reforms. Applies if you hold any of:
- Pensioner Concession Card (PCC)
- Health Care Card (HCC)
- Commonwealth Seniors Health Card (CSHC)
- Department of Veterans' Affairs (DVA) Pensioner Concession Card, Gold Card, or White Card
Show the card at every fill. The pharmacy applies the concessional rate at the counter; there's no separate paperwork. If you forgot to show the card, you can ask for a refund of the difference within 12 months at the same pharmacy.
If your medicine's actual price is below the co-payment, you pay the actual price, not the full co-payment. This is increasingly common for older generics where the manufacturer's price has fallen below $25.
More in our concession card savings guide.
The Safety Net thresholds
The Safety Net protects you from the cumulative cost of medicines over a calendar year. Once your family's eligible PBS spending crosses the threshold, your subsequent medicines drop to a lower rate for the rest of the calendar year.
2026 thresholds:
| Patient type | Per-script co-pay | Safety Net threshold (per family per year) | Script cost after threshold |
|---|---|---|---|
| General | $25.00 | $1,748.20 | $7.70 each |
| Concession | $7.70 | $277.20 | Free |
!PBS Safety Net pathway from first script through threshold to year-end
``chart type: flow title: PBS Safety Net pathway across a calendar year data: - label: "1 January" value: "Threshold resets to $0" - label: "Each PBS fill" value: "Co-pay counts toward family total" - label: "Threshold crossed" value: "General drops to $7.70; concession becomes free" - label: "Apply for Safety Net card" value: "Backdated to crossing date; refunds available" - label: "31 December" value: "Benefit period ends; resets 1 January" ``
The threshold resets on 1 January each year. Spending doesn't roll over. If you cross the threshold on 30 December, the benefit lasts a day before resetting.
A "family" for Safety Net purposes is you, your partner, and your dependent children under 16 (or under 25 if a full-time student). All eligible spending across the family combines toward one threshold. This means a family with multiple people on regular medicines often crosses the threshold faster than they expect.
What counts toward the Safety Net
Most PBS spending counts. Some doesn't.
Counts:
- The co-payment portion of any PBS-listed script you fill
- The PBS portion of certain pharmacist services charged at the PBS rate
Doesn't count:
- The brand premium (the extra you pay if you choose a brand more expensive than the cheapest available)
- The Therapeutic Group Premium (for certain newer medicines where a cheaper alternative class exists)
- Private prescriptions that aren't PBS-listed
- Over-the-counter medicines bought without a prescription
- Personal vitamins, supplements, and non-prescription pharmacy purchases
If you're unsure whether a medicine counts, ask the pharmacist before they dispense. Your Prescription Record Form (PRF) shows what's counted toward your year-to-date total.
More in our PBS Safety Net guide.
How to apply for a Safety Net card
For most Australians, the application is automatic. The pharmacy that fills your threshold-crossing script issues the Safety Net card on the spot, the same day. Carry the card and show it at every subsequent fill.
If you crossed the threshold but no card was issued (common when scripts are filled across multiple pharmacies), apply through:
- Online: at Services Australia through myGov
- By phone: 132 011
- In person: at any Centrelink or Medicare service centre
Applications usually take a few weeks. The card is backdated to the date you crossed the threshold, so scripts filled in the interim are eligible for a refund of the difference between the general and concessional rate.
More in our Safety Net card application guide.
Brand premium and why your script may cost more than the co-payment
A brand premium is the extra you pay above the co-payment if you choose a brand of medicine that's more expensive than the cheapest brand the manufacturer has on offer. The PBS subsidises the cheapest brand. If you ask for, or are dispensed, a pricier brand, you pay the difference.
The brand premium can be a few dollars or several tens of dollars depending on the medicine. It does not count toward your Safety Net. This is the reason a script can cost the same person more than the $25 co-payment.
Reasons people end up paying a brand premium:
- They specifically asked for a brand they trust
- The pharmacy was out of the cheapest brand on the day
- The prescriber marked "do not substitute" on the script
- The patient (or carer) didn't realise a cheaper option existed
In most cases, the pharmacist will offer the cheapest brand by default. You can ask: "Is there a generic that costs less?" If yes, the pharmacist substitutes unless the prescriber has marked otherwise.
Generic versus brand
A generic medicine contains the same active ingredient, in the same strength, in the same form, as the brand-name version. Generics are tested by the Therapeutic Goods Administration and held to the same quality standards. The price difference is purely commercial: brand manufacturers spend more on research, marketing, and brand-building; generic manufacturers don't.
For PBS purposes, all bioequivalent versions of the same medicine appear under one PBS code. You pay the same PBS co-payment regardless of brand. The brand premium only applies when you pick a brand that costs more than the cheapest the pharmacy stocks.
In some cases your prescriber will mark "do not substitute" on the script, which usually means there's a specific clinical reason to keep you on one brand. If that brand carries a premium, you'll pay it. If you'd prefer a generic, talk to your prescriber.
More in our generic vs brand medicines guide.
The 60-day prescription reform
From September 2023, the federal government allowed eligible PBS medicines to be prescribed in 60-day quantities instead of the historical 30-day standard. The reform has been rolled out in tranches and the eligible list keeps expanding.
For you, the practical effect is fewer trips to the pharmacy and fewer co-payments. A stable patient on a chronic-disease medicine now fills six scripts a year instead of twelve, paying $25 x 6 = $150 a year for a general patient, rather than $25 x 12 = $300.
The 60-day reform also affects how fast you cross the Safety Net. If you're stable on one medicine and now filling six scripts a year, you cross the threshold more slowly. For patients on multiple medicines this matters less; for patients on a single chronic medicine it can mean missing the Safety Net altogether.
You don't apply for 60-day scripts. Your GP issues them where appropriate, based on whether your medicine is on the eligible list and whether your condition is stable. The full eligible list and rollout dates are at health.gov.au.
The Medicare app for tracking
If you've linked Medicare to myGov, your year-to-date PBS spending updates automatically. Open the Medicare app, tap "PBS expenditure", and you'll see your running total and how far you are from the Safety Net threshold.
This is the easiest tracking method and the most accurate, because it captures spending across every pharmacy in the country, not just one. The data updates within a few days of each fill.
The app does not show your dispensing history line-by-line for privacy reasons, but the running total is enough to plan around. If you want a detailed dispensing record, request it from your pharmacy or through My Health Record.
Why the same script can cost different amounts at different pharmacies
A frequent question, with three legitimate answers:
- Brand premium. If two pharmacies stock different brands of the same medicine, one may carry a higher brand premium. You're paying the same PBS portion plus a different premium.
- Private versus PBS. If your script isn't PBS-listed, the pharmacy sets the private price. Private prices vary widely between pharmacies. For private scripts, shopping around can save real money.
- Below-co-payment medicines. For medicines whose actual price is below the co-payment, different pharmacies may charge slightly different actual prices.
For PBS-listed medicines at the standard co-payment with no brand premium, the price should be the same at every Australian pharmacy. The variation people notice is almost always a brand-premium or private-script difference.
More in our script cost comparison guide.
Tax-deductible scenarios
In some cases, out-of-pocket medical expenses including pharmacy spending can be claimed against tax. The federal Medical Expenses Tax Offset has been phased out for most people, but two paths remain:
- Disability-related expenses. If the pharmacy spending relates to a disability and isn't fully reimbursed by Medicare, the National Disability Insurance Scheme, or private insurance, some categories remain claimable. Check with the Australian Taxation Office or your accountant.
- Self-managed health expenses for business. Sole traders and contractors managing their own health-related expenses through their business can sometimes claim, depending on circumstances. Again, ATO or accountant.
Keep your pharmacy receipts either way. Most pharmacies can reprint a year's worth on request, though some charge a small fee.
More in our pharmacy receipts for tax and insurance guide.
DVA and RPBS
Veterans and their dependents have a separate but parallel scheme. The Repatriation Pharmaceutical Benefits Scheme (RPBS) is administered by DVA. Gold Card holders access a broader range of medicines than the standard PBS. White Card holders access medicines related to their accepted conditions only.
In 2026 the DVA co-payment is the same $7.70 concessional rate as the PBS, and the Safety Net threshold is $277.20 (matching the concessional PBS threshold). Some medicines that aren't on the PBS are on the RPBS, particularly for service-related conditions.
If you're a veteran or dependent and unsure what your card entitles you to, contact DVA on 1800 555 254 or check dva.gov.au.
More in our DVA pharmacy entitlements guide.
Talk to someone now
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Frequently asked questions
$25.00 per script for general patients without a concession card. This is down from $31.60 in 2023 following the federal Cheaper Medicines reforms. Concession card holders pay $7.70.
