Sixth Community Pharmacy Agreement

Page last updated: 11 December 2015

The five year Sixth Community Pharmacy Agreement (6CPA) between the Commonwealth of Australia and the Pharmacy Guild of Australia commenced on 1 July 2015 and is a key element of the PBS Access and Sustainability Package, announced in the 2015-16 Budget.

The 6CPA was developed following broad consultations with a range of stakeholder groups across the pharmaceutical industry, pharmacy and pharmacists, consumers, peak groups, and other organisations.  In addition, the 6CPA was developed with particular consideration towards the findings and recommendations of the Australian National Audit Office (ANAO’s) audit of the Fifth Community Pharmacy Agreement (5CPA).

The 6CPA provides around $18.9 billion in remuneration for community pharmacy, as well as to support the pharmaceutical supply chain (with a further $372 million provided for chemotherapy compounding fees).  This funding comprises $15.5 billion from the Commonwealth and $3.4 billion from patient contributions.

NB this excludes remuneration for dispensing medicines under s100 special arrangements and an estimated $4.8 billion from dispensing pharmaceutical items that are priced below the maximum co-payment.

The 6CPA includes three key funding elements, namely:

  • community pharmacy remuneration;
  • the Community Services Obligation – which ensures that all Australians have timely access to the PBS medicines they require regardless of the cost of the medicine or where they live; and
  • community pharmacy programmes – with a primary focus on assisting patients better manage their medications thereby reducing medication misadventure and delivering primary healthcare services through community pharmacy.

In addition, there are a number of other significant components, including Pharmacy Location Rules, governance arrangements, chemotherapy arrangements, and the Review of Pharmacy Remuneration and Regulation.

Links to, and key elements and components of, the 6CPA