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How does the Pharmaceutical Benefits Scheme work in Australia?

Answered by LandedAU · 2026-07-15

How the Pharmaceutical Benefits Scheme (PBS) Works

The PBS is an Australian government program that helps make prescription medicines more affordable for all residents. Here's how it works:

Basic Coverage

The PBS subsidises the cost of approved medicines. You pay a patient contribution (a fixed amount per prescription), and the government pays the rest. This makes medicines much cheaper than buying them privately.

Patient Contribution Amounts

  • General patients: Currently around $30 per prescription
  • Concession card holders: Around $7 per prescription (pensioners, low-income earners, students)
  • Safety net threshold: Once you reach a yearly spending limit, medicines become free for the rest of that calendar year

Who Can Access PBS

You must be an Australian resident to access PBS medicines. This includes:

  • Australian citizens
  • Permanent residents
  • Some temporary visa holders (depending on visa type and reciprocal health agreements)

Check your visa conditions or contact Services Australia to confirm your eligibility.

How to Use PBS

  • Your doctor prescribes a PBS-listed medicine
  • You take the prescription to a pharmacy
  • You pay the patient contribution amount
  • The pharmacy claims the government subsidy automatically

Important Points

Not all medicines are covered. The PBS only covers approved medicines. Your doctor or pharmacist can tell you if your medicine is on the PBS list.

Private prescriptions are available. If a medicine isn't on the PBS, you can buy it privately at full cost.

Concession cards matter. If you're eligible for a concession card (pension, healthcare card, student card), register it with your pharmacy to get the lower contribution amount.

Useful Links

This is general information only. Check official sources before acting.

This is general information only. Always check official sources before acting. ← More questions

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