Cost Recovery Fees and Charges
Page last updated: 30 November 2023
This page provides details on:
- Background on cost recovery for PBS and NIP listing
- Changes from 1 July 2023
- Fees and Charges from 1 July 2023
- Details of invoicing timing
- Payments
- Fee exemptions
- Fee waivers
- Contact the Cost Recovery Unit
Background on cost recovery for PBS and NIP listings
The Pharmaceutical Benefits Scheme (PBS) provides timely, reliable, and affordable access to necessary medicines for Australians. The National Immunisation Program (NIP) aims to reduce the incidence of vaccine-preventable diseases and protect individuals and the Australian community.
Cost Recovery involves the Australian Government charging the non-government sector for some or all of the efficient costs of a specific government activity. That activity may include the provision of goods, services or regulation, or a combination of them.
The Cost Recovery Implementation Statement (CRIS) provides information on how the Department of Health and Aged Care (the Department) implements cost recovery for:
- Submissions to the Pharmaceutical Benefits Advisory Committee (PBAC) for medicines seeking to be listed on the PBS; or
- Submissions to the Australian Technical Advisory Group on Immunisation (ATAGI) for vaccines to be listed on the NIP; or
- Applicant-driven PBS listing and list management activities.
The CRIS for the 2023-24 financial year reflects the fee structure effective from 1 July 2023.
Cost recovery arrangements from 1 July 2023
Amendments to the National Health (Pharmaceutical and Vaccines—Cost Recovery) Regulations 2022 came into effect on 1 July 2023 to support the annual indexation of cost recovery fees. The National Health (Pharmaceuticals and Vaccines – Cost Recovery) Amendment (Fees) Regulations 2023 and an Explanatory Statement outlining details of the new Regulations is available below:
- National Health (Pharmaceuticals and Vaccines—Cost Recovery) Amendment (Fees) Regulations 2023 (PDF 1.3MB) - (Word 208KB)
- National Health (Pharmaceuticals and Vaccines—Cost Recovery) Amendment (Fees) Regulations 2023 Explanatory Statement (PDF 697KB) - (Word 70KB)
For further information regarding the 2023-24 cost recovery arrangements and regulations, please refer to:
- 2023-24 PBS/NIP Cost Recovery Implementation Statement (1 July 2023 – 30 June 2024) (PDF 496 KB) - (Word 144 KB)
- PBS/NIP Cost Recovery Administrative Guidelines: Information for Applicants (PDF 458 KB) - (Word 341 KB)
Ministerial Determination Requests (Stockholding)
Consistent with commitments made in the 2022 Strategic Agreement with the Medicines Industry, manufacturers of certain PBS listed medicines are required to hold a minimum quantity of four or six-months’ supply of that medicine within Australia. Manufacturers may submit applications seeking a determination from the Minister to alter these stockholding arrangements to remain compliant with their legal obligations of supply. Such applications have been accepted by the department since October 2022.
Similar to existing types of list management applications, these applications require departmental assessment and processing. To ensure consistency with existing cost recovery arrangements and the Australian Government Charging Framework, Ministerial determination requests will be subject to cost recovery from 1 July 2023. The fee for these requests is $4,880.
Independent review of the PBS activity-based cost model
The PBS activity-based cost model underwent an independent review in 2022, addressing clause 6.2 of the current Strategic Agreement between the Commonwealth Government and Medicines Australia. The Executive Summary (PDF 585 KB) of the review findings is available.
Fees and Charges from 1 July 2023
Some fees are inclusive of a non-refundable administrative deposit for the Notice of Intent (NOI) step in the application process, as stated below.
ATAGI Pre-submission Evaluation Services |
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Charge |
Fee applicable |
Comments |
Notice of Intent |
$430 |
Included with certain fees, as stated. |
Complex Application |
$212,790 |
Notice of Intent fee included |
Simple Application |
$117,390 |
Requests for ‘simple’ ATAGI applications must be sought in writing. Notice of Intent fee included. |
Pre-submission services |
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Charge |
Fee applicable |
Comments |
1st Pre-Submission Meeting |
$15,440 |
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2nd Pre-Submission Meeting |
$20,980 |
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PBAC Evaluation Submission Services |
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Charge |
Fee applicable |
Comments |
Notice of Intent |
$430 |
Included with certain fees, as stated. |
Category 1 |
$252,540 |
Notice of Intent fee included. |
Category 2 |
$197,930 |
Notice of Intent fee included. |
Category 3 |
$42,890 |
Notice of Intent fee included. |
Category 4 |
$33,370 |
Notice of Intent fee included. |
Resubmission - Standard re-entry pathway |
$195,820 |
Notice of Intent fee included. |
Resubmission – Facilitated resolution pathway |
$269,450 |
Deposit of $72,440 included (Notice of Intent fee + workshop fee). |
Resubmission - Early re-entry pathway |
$41,470 |
Notice of Intent fee included. |
Resubmission - Early resolution pathway |
$41,620 |
Notice of Intent fee included. |
Committee Secretariat |
$11,990 |
Notice of Intent fee included. |
Generic Submission - New brand or new oral form of existing pharmaceutical item |
$6,410 |
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Positive Recommendation Pathways (also known as Pricing Services) |
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Charge |
Fee applicable |
Comments |
Rebate Management fee |
$8,640 |
Included in certain fees, as stated. |
Pricing Pathway A |
$140,280 |
Notice of Intent fee and the Rebate Management fee is included. |
Pricing Pathway B |
$111,200 |
Notice of Intent fee and the Rebate Management fee is included. |
Pricing Pathway C |
$73,780 |
Notice of Intent fee and the Rebate Management fee is included. |
Pricing Pathway D |
$20,050 |
Notice of Intent fee included. |
Pricing Secretariat |
$12,430 |
Notice of Intent fee included. |
List Management Services |
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Charge |
Fee applicable |
Comments |
Deed Variations |
$1,990 |
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Deed Renewals |
$10,820 |
Rebate Management fee is included. |
Price increase / Brand premium request |
$4,980 |
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Ministerial determination request (Stockholding request) |
$4,880 |
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Ministerial discretion request |
$6,910 |
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Details of invoicing timing
ATAGI Pre-submission Services – Applies to both Simple and Complex ATAGI Pre-Submission Services |
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Invoicing point |
Withdrawal for refund |
Notification of fee waiver/exemption |
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Within 15 business days after the department receives intent to request ATAGI advice. |
Within 10 business days after the applicant is invoiced. |
Within 15 business days after the department receives request for fee waiver and fee exemption requests for ATAGI advice through the notice of intent or the ATAGI application if the notice of intent is not required. |
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Pre-submission services – Pre-submission meeting requests |
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Invoicing point |
Withdrawal for refund |
Notification of fee waiver/exemption |
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Within 10 business days, except where an application is received more than 30 business days before the intended meeting date. If a decision to hold a pre-submission meeting is made more than 30 business days before the intended meeting date, then the invoice will be issued within 20 business days before the scheduled meeting date. |
Before the end of the last business day before the meeting is to be held. |
N/A |
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PBAC Evaluation Submission Services with Notice of Intent Applies to all evaluation categories with an Notice of Intent (excluding New Brands or New Oral Form/Generic submissions) |
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Invoicing point |
Withdrawal for refund (Notice of Intent fee is not refundable) |
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When the department receives the Notice of Intent, an invoice will be issued at least
10 business days before the submission due day. |
By the submission due date or within 10 business days after the applicant is invoiced (whichever is later). |
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Notification/invoicing point for fee waivers and exemptions |
Withdrawal for refund (Notice of Intent fee is not refundable) for fee waivers and exemptions |
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When the department receives a Notice of Intent with a fee waiver or exemption request, the invoice will be issued at least 5 business days before the submission due day if the fee waiver or exemption is not granted. If the Notice of Intent is not required and the department receives the submission with a fee waiver or exemption request, the invoice will be issued within 15 business days after the day the submission is received if the fee waiver or exemption is not granted. If the fee exemption/waiver request is granted, then no invoice will be sent. |
Within 10 business days after the notification and invoice is sent, and this is only applicable to applications which a fee exemption/waiver is not granted. |
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Invoicing point for Facilitated Resolution Pathway |
Withdrawal for refund (Notice of Intent fee is not refundable) |
Notification of fee waiver/exemption |
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When the department receives the Notice of Intent, an invoice will be issues at least 10 business days before the submission due day. If the Notice of Intent is not required, an invoice will be issued within 15 business days after the day the submission is received. |
On or before the last business day before the scheduled workshop date. |
When the department receives a Notice of Intent with fee waiver or exemption requests, the invoice will be issued at least 5 business days before the submission due day if the fee waiver or exemption is not granted. If the Notice of Intent is not required and the department receives the submission with a fee waiver or exemption request, the invoice will be issued within 15 business days after the day the submission is received if the fee waiver or exemption is not granted. If the fee exemption/waiver request is granted, the no invoice will be sent. |
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New Brands or New Oral Form/Generic submissions |
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Invoicing point |
Withdrawal for refund |
Notification of fee waiver/exemption |
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Within 15 business days after the department receives the application. |
Within 10 business days after the applicant is invoiced. |
Within 15 business days after a waiver/exemption application is received. |
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Pricing Services |
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Invoicing point |
Withdrawal for refund (Notice of Intent fee is not refundable) |
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Within 10 business days after the department receives the Notice of Intent. If the Notice of Intent is not required, the invoice will be issued within 15 business days after the day the pricing application is received. |
Within 10 business days after the applicant is invoiced. |
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Notification/Invoicing point for fee waiver and exemptions |
Withdrawal for refund (Notice of Intent fee is not refundable) for fee waivers and exemptions |
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Within 15 business days after the department receives the applicant’s request for a fee waiver or exemption, the invoice will only be issued if the fee waiver or exemption is declined. |
Within 10 business days after the applicant is invoiced. |
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Rebate Management Fee |
When the applicant withdraws their application; or the department ceases pricing services, and a new deed arrangement has not been entered into. |
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List Management Services Applies to Deed Variations, Deed Renewals, Price increase requests, Brand Premium requests, Ministerial determination request (Stockholding) and Ministerial discretion requests. |
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Invoicing point |
Withdrawal for refund |
Notification of fee waiver/exemption |
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Within 15 business days after the department receives the application. |
Within 10 business days after the applicant is invoiced. |
Within 15 business days after a waiver/exemption application is received. |
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Rebate Management Fee* Deed renewal requests only |
When the applicant withdraws their application, and a new deed arrangement has not been entered into. |
Payments
The preferred method for paying the fees for all PBAC submissions (except deed variations and renewals) is via the Health Products Portal (HPP) using Government EasyPay. For further information on paying invoices through the HPP, see the Using the HPP - Managing Invoices. Other payment methods are specified on the invoice. If paying by EFT, you must include the invoice number in the free text portion of the transaction to allow identification of your payment. If you wish to make other arrangements for paying the fee, please contact the department using the contact details provided on the invoice. If you require a receipt, please request one by emailing CRM@health.gov.au.
A request for payment letter, which will accompany the invoice, will advise the applicant of a Unique Identifying Number to identify the application throughout the fee process.
If required, please enter your purchase order number in the appropriate field on application forms to ensure this is included on your invoice.
All payment terms are 28 days after invoice date. Fees must be paid in full at the time of payment. Payment by instalment will not be accepted unless by prior agreement with the department. Partial payments may only be accepted in exceptional circumstances and must be agreed to, in advance, by the department.
Fee exemptions
An application for ATAGI advice, submission services, a pricing pathway or list management application will be exempt from cost recovery fees if it meets the criteria for exemption as outlined in Section 67 of the National Health (Pharmaceuticals and Vaccines – Cost Recovery) Regulations 2022 (the Regulations).
All fee exemption requests must include in the application reasons why Section 67 of the Regulations would apply. This can be addressed in a cover letter accompanying the application or submission, stating which subsection of the Regulations would apply for the application or submission, along with supporting evidence.
Please note that fee exemptions do not apply to pre-submission services and Independent Review services.
Orphan drug designation
An orphan drug is a pharmaceutical agent that is developed to treat certain rare medical conditions. An orphan drug would not be profitable to produce without government assistance, due to the small population of patients affected by the conditions. An ‘orphan drug’ is designated as such by the Therapeutic Good Administration (TGA) under Regulation 16J of the Therapeutic Goods Regulations 1990, as described on TGA’s orphan drug eligibility criteria webpage.
If the applicant is requesting an orphan drug fee exemption, the applicant must provide the TGA letter showing a valid orphan drug designation for the same medicine and indication. If the drug, medicine, or vaccine is in the process of being approved for orphan drug designation by the TGA, the applicant must also provide evidence of this.
Please note that an orphan drug designation given by the TGA does not mean the fee exemption will automatically be granted. The application must meet one of the criteria listed in the table below:
Scenario |
Assessment |
TGA Requirements |
Regulations |
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Scenario A |
Application has an active orphan drug designation status, and the applicant has not previously applied for an orphan drug fee exemption. |
In terms of orphan drug designations, it is not only specific to the medicine, but also to the designated use of the medicine. Orphan drug designation for a medicine must be the same:
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67 (4)(a) |
Scenario B |
Orphan drug designation lapsed, the PBAC submission has been submitted in parallel with an application for the orphan drug to be registered on the ARTG and the applicant has not previously applied for an orphan drug fee exemption. |
67(5)(b)(i) & (ii) |
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Scenario C |
Orphan drug designation has lapsed; however, the orphan drug was registered on the ARTG within the last 12 months and the applicant has not previously applied for an orphan drug fee exemption. |
67 (5)(c) |
Please note there are no discretionary powers available to the Delegate to grant, or not grant, a fee exemption. If one of the criteria are not met as outlined above, the fee exemption cannot be granted.
Additional circumstances in which fee exemptions may be sought are as follows:
Regulations reference |
Fee exemption category |
Full exemption category as per the Regulations |
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67(1)(a) |
Temporary supply |
A drug that is exempt from entry in the Australian Register of Therapeutic Goods because of an approval granted under section 19A of the Therapeutic Goods Act 1989 |
67(1)(b) |
Public health events |
If the Secretary considers that the supply of a drug, medicinal preparation or vaccine is necessary for the management of:
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67(2)(a) |
Price reductions |
to offer a price reduction |
67(2)(b) |
Responsible person name change |
to change the name of the responsible person |
67(2)(c) |
Vary a determination under ss9B(2) |
to vary a determination under subsection 9B(2) of the National Health Act 1953 (Act) so that a vaccine ceases to be a designated vaccine |
67(2)(d) |
Revoke a determination under ss9B(2) |
to revoke a determination under subsection 9B(2) of the Act |
67(2)(e) |
Vary an arrangement under ss100(2) |
to vary an arrangement under subsection 100(2) of the Act so that a drug or medicinal preparation ceases to be covered by the arrangement |
67(2)(f) |
Revoke an arrangement under ss100(2) |
to revoke an arrangement under subsection 100 (2) of the Act |
67(2)(g) |
Vary a declaration under ss101(4AAA) |
to vary a declaration under subsection 101 (4AAA) of the Act so that a drug or medicinal preparation ceases to be a listed drug |
67(2)(h) |
Revoke a declaration under ss101(4AAA) |
to revoke a declaration under subsection 101 (4AAA) of the Act |
67(2)(i) |
To decrease the existing pack quantity with no price implications |
to decrease the pack quantity (the existing pack quantity) of a listed brand of a pharmaceutical item if the amount that is to be the appropriate maximum price of the decreased pack quantity to be agreed under section 85AD of the Act will be calculated proportionally based on the approved ex manufacturer price of the existing pack quantity on the day before the agreement under that section takes effect |
67(2)(k) |
Vary a declaration, determination, arrangement or other legislative instrument at the request of Services Australia, TGA or Government |
to vary a declaration, determination, arrangement or other legislative instrument made under section 9B or Part VII of the Act:
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67(4),(5)&(6) |
Orphan drug designation for first time submissions to PBAC only, within the first 12 months of being included on the ARTG |
Exemption for submission services relating to designated orphan drugs (4) No fee is payable under this instrument for submission services provided in response to a person’s submission proposing a therapy involving the use of one or more drugs or medicinal preparations if: (a) on the day the submission is given to the Department, subsection (5) applies to each of those drugs or medicinal preparations; and (b) this subsection has not already applied to submission services provided in response to an earlier submission by the person proposing the same therapy involving the use of any of those drugs or medicinal preparations. (5) This subsection applies to a drug or medicinal preparation (the drug) on a day
if: (a) on that day, the drug is a designated orphan drug; or (b) both: (i) on that day, the Secretary is yet to decide whether to include the drug in the ARTG in response to an application made by the person on or before that day; and (ii) were the drug to be so included, the registration fees for doing so would be waived under paragraph 45(12)(c) of the Therapeutic Goods Regulations 1990 because the drug is a designated orphan drug; or (c)less than 12 months before that day, the drug was included in the ARTG and the registration fees for doing so had been waived under paragraph 45(12)(c) of the Therapeutic Goods Regulations 1990 because the drug was a designated orphan drug. |
Fee waivers
An applicant may apply to the Delegate of the Secretary to waive the fee for ATAGI advice, submission services, pricing services or list management services if the application involves a public interest component and where payment of the fee would make proceeding with the application financially unviable.
In preparing a fee waiver request application, the applicant is required to provide sufficient evidence to allow a Delegate to be satisfied that under section 68 of the Regulations that:
- the submission involves the public interest; and is used:
- for palliative care; or
- as a paediatric medicine; or
- for medical treatment of Aboriginal or Torres Strait Islander peoples; and
- payment of fees would make the submission financially unviable.
It is recommended the applicant includes all relevant information and supporting evidence for the department to consider the facts and circumstances of their application. This can be addressed in a cover letter accompanying the application.
Supporting documentation should include:
To address the public interest criterion: |
To address the financial unviability criterion: |
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How the application involves the public interest, which may include but are not limited to applications where the drug or vaccine:
What the medicine, vaccine or other product seeks to do and its benefit, for example:
The target population including estimated utilisation, for example:
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A brief outline of the anticipated financial viability of the application:
An example of how financial unviability could be presented is shown in the table below:
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Fee Waivers - Submission Services
For fee waiver applications, a financial forecast template is provided. This will assist the Department in determining the financial unviability for the application being assessed - Excel Profit Margin Calculations template - (Excel 53KB)
Example of how financial unviability could be presented:
Profit Margin Template |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Year 6 |
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Revenue |
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Cost of Goods Sold (COGS) |
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Gross Profit |
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LESS |
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Expenses e.g. Marketing, Advertising & Promotion (example only) |
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General & Administrative (example only) |
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Freight (example only) |
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Earnings before depreciation & taxes |
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Contact the Cost Recovery Unit
Email: pbscostrecovery@health.gov.au