Patient co-payments
The co-payment is the amount you pay towards the cost of your PBS subsidised medicine. Many PBS medicines cost significantly more than the co-payment amount.
Following a reduction in the general co-payment amount, from 1 January 2026, you may pay up to $25.00 for most PBS medicines, or $7.70 if you have a concession card. The Australian Government pays the remaining cost (with the exception of brand premiums and certain other allowable charges).
Since 1 January 2023 pharmacists may provide a discretionary discount to general patients for specific eligible medicines. This is not mandatory, and it is the pharmacist’s choice to provide a discount.
To be eligible for a discretionary discount the prescription would have to:
- be an ordinary script for a general patient; and
- have a Commonwealth price that is higher than the general co-payment amount of $25.00, but less than the upper threshold of $51.10. Both of these amounts are indexed annually on 1 January.
The amount counting towards the Safety Net for these prescriptions continue to be calculated in the same way as for non-discounted under co-payment prescriptions.
As PBS medicines can vary in price depending on the pharmacy from which they are purchased, it may be beneficial for patients to compare pharmacy prices for their medicines.
Since 1 January 2016, pharmacists have been able to discount the PBS patient co-payment amounts (concessional and/or general). This is not mandatory, and it is the pharmacist’s choice to provide a discount.
From 1 January 2025, the pre-existing $1.00 ‘allowable discount’ began to be phased out while annual adjustments to the PBS patient co-payment amounts in line with the Consumer Price Index (CPI) were frozen. It is decreasing by the amount of indexation (in dollars) that would have applied to a patient’s PBS co-payment until it reaches zero.
In 2025, the allowable co-payment discount for concessional patients was reduced to $0.80. From 1 January 2026, the allowable co-payment discount for concessional patients will be $0.60, as the allowable $0.80 discount will decrease by the amount of indexation (in dollars) that would have normally applied to the concessional co-payment of $7.70, i.e., $0.20. Concessional patients will be eligible for a discount of up to $0.60 off the concessional patient co-payment of $7.70 in 2026.
In 2025, the allowable co-payment discount for general patients was reduced to $0.10. From 1 January 2026, the allowable co-payment discount for general patients will be reduced to nil, as the amount of indexation that would normally have been applied to the general co-payment is greater than $0.10.
The allowable discount to the concessional PBS patient co-payment will continue in conjunction with the new discretionary increased discount arrangements. The option to discount the co-payment amount does not apply to prescriptions which are an early supply of a specified medicine.
The general patient co-payment will be reduced to $25.00 on 1 January 2026. The general co-payment amount will continue to be adjusted on 1 January each year from 2027 in line with movements in the Consumer Price Index (CPI).
The concessional patient co-payment will not be indexed on 1 January 2026 and remain at the amount of $7.70 until 2029. The concessional co-payment amount will continue to be adjusted on 1 January each year from 2030 in line with movements in the Consumer Price Index (CPI).
Safety Net
From 1 January 2026, the PBS Safety Net threshold for patients with a concession card will remain at $277.20 and for other eligible patients it will be $1,748.20.
The same general or concessional Safety Net threshold is applied to a family unit regardless of whether the unit consists of an individual, a couple or a family with dependent children. To be included in the same Safety Net family, the partners of a couple may be married or ‘de facto’, and of the same or opposite sex. A couple must be living together on a permanent basis, unless living separately due to illness.
After exactly reaching or exceeding the Safety Net threshold, general patients pay for further PBS prescriptions at the concessional co-payment rate and concession card holders are dispensed PBS prescriptions at no further charge for the remainder of that calendar year. In order to access the Safety Net arrangements, you need to maintain records of your PBS, RPBS and non-PBS public outpatient medicine expenditure on a Prescription Record Form (PRF). These may be available from pharmacies, or the form can be downloaded and printed by patients or pharmacies by going to PBS/RPBS Safety Net prescription record form and application for a Safety Net card form (PB240) - Services Australia. The value of the actual amount paid will be recorded on your PRF: that is, the general or concessional co-payment amount; the amount paid for under co-payment prescriptions or those who have had an eligible discretionary increased discount applied; and from 1 January 2026, less any allowable discount, up to a maximum of $0.60 for patients with a concession card. Further information on the Safety Net and PRF can be found at The Safety Net Scheme.
Public Hospitals and the Safety Net
The Safety Net threshold may be reached using PBS scripts filled at community pharmacies and non-PBS out-patient medicines at public hospitals. From 1 January 2026, the contribution rate for general patients as out‑patients in public hospitals in all states and territories, except for Queensland, will be $20.00. The rate for concessional patients remains at $7.70. In public hospitals where states and territories are participating in Pharmaceutical Reform Agreements (PRAs), patients will pay a maximum of $25.00. These amounts are adjusted on 1 January each year. Expenses for non-PBS public outpatient medicines can be recorded on the hospital PRF.
Items that are priced below the general patient co-payment amount
For general patients, an allowable additional patient charge can apply. The allowable additional patient charge is a discretionary charge to general patients if a pharmaceutical item has a dispensed price for maximum quantity less than the general patient co-payment amount. The pharmacist may charge general patients the allowable additional fee, but the fee cannot take the cost of the prescription above the general patient co-payment amount for the medicine.
In 2026, the fee will reduce to $2.79 to reflect the general co-payment reduction and will continue to be indexed from 1 January each year.
Additional fee for ready prepared items
In addition, if a medicine has a ‘dispensed price for maximum quantity’ less than the general co-payment amount, a Safety Net recording fee may be charged by your pharmacist. This fee must not take the cost of your prescription above the co-payment amount.
Concessional patients do not pay this fee.
This fee is currently up to $1.48. The amount of this fee does count towards your Safety Net threshold.