Charges on medications were introduced in 1952, by the Conservative government of Winston Churchill, at a rate of one shilling per prescription. There were exemptions for people in receipt of National Assistance or War Disablement Pension, children under 16 or at school, and venereal disease patients.
From 1 January 2023, the PBS co-payment for general patients will reduce from $42.50 to $30.00.
If your medicine is not covered by the PBS, the RPBS or the Life Saving Drugs Program, you will pay full price. Pharmacies charge differently for these medicines, so it can be worth shopping around to find the best price. Read more about keeping the cost of medicines down.
The Pharmaceutical Benefits Scheme (PBS) began as a limited scheme in 1948, with free medicines for pensioners and a list of 139 'life-saving and disease preventing' medicines free of charge for others in the community.
When you reach the PBS Safety Net threshold, you can get PBS prescriptions for you and your immediate family at a lower price for the remainder of the year. The standard PBS Safety Net price is $7.30 and free for those with a Pension, Concession or Veteran's card.
Plans to end free NHS prescriptions for 60-65 year-olds in England have reportedly been scrapped by the Government following backlash. The plan was first proposed in 2021 by Boris Johnson's government to lift the qualifying age for free prescriptions from 60 to 66 to bring it into line with the state pension age.
o When concession card holders reach the safety net threshold, after 36 full priced concessional scripts, they will receive PBS medicines at no charge for the balance of the year.
Pharmaceutical benefits can only be prescribed by doctors, dentists, optometrists, midwives and nurse practitioners who are approved to prescribe PBS medicines under the National Health Act 1953. There are separate arrangements for PBS prescriptions in certain public hospitals.
The Pharmaceutical Benefits Scheme (PBS) lets Australians use lots of prescribed medicines without paying full price. The PBS is part of the Australian Government's National Medicines Policy. The National Medicines Policy aims to balance the need for medicines with good health results and economic limits.
What is free and what is not free at Chemist Warehouse? Fully subsidised medications issued by a GP are free at the Chemist Warehouse (they pay the usual $5 per item pharmacy prescription charges). Some medications are part-subsidised or non-subsidised. Ask your MedOnline GP if this applies to any of your medications.
In 2021, the total cost of the prescription drug Aflibercept cost the Australian government 443.73 million Australian dollars, making it the most expensive prescription drug in Australia. Aflibercept is commonly used to treat macular degeneration and metastatic colorectal cancer.
Doctors, nurse practitioners and pharmacists who are involved in your care are authorised under law to access information about your prescription history in SafeScript, without your express permission, for the purpose of ensuring your safety when prescribing or dispensing high-risk prescription medicines.
It usually resets at the beginning of each year, 1 January. On 1 January 2023, the PBS Safety Net thresholds were updated to: $262.80 for concession card holders. $1,563.50 for general patients.
There are 2 Safety Net thresholds: The concessional patient Safety Net threshold is $262.80. The general patient Safety Net threshold is $1,563.50.
Since 1 January 2023, a new discretionary discount was introduced. Pharmacists and dispensing medical practitioners can choose to offer the new discount for PBS medicines that cost more than $30 but less than $45.60 (plus any applicable premiums).
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
The government will provide $3.7 million in 2023–24 to extend the measure to provide age and veteran pensioners a once-off credit of $4,000 to their Work Bonus income bank and temporarily increase the maximum income bank until 31 December 2023.
From 1 July 2023, Age Pension age will be 67 years, if you were born on or after 1 January 1957.
How much am I charged for non-PBS items? If your medicine is not listed under the PBS Schedule, you will have to pay full price as a private prescription; it is not subsidised by the Commonwealth. Pharmacies may charge differently for these non-PBS medicines, so you may want to shop around to find the best price.
The maximum cost of a PBS prescription for general patients will reduce from $42.50 to $30.00 from 1 January 2023. This is a 29% reduction. This is the first time in 75 years the general co-payment under the PBS has fallen.
New discretionary discounting
From 1 January 2023 general patient medicines with a dispensed price above between $30.00 to and $45.60 may be discounted to any price (including a price below $30.00). The amount charged to the patient will continue to count toward the patient's general patient PBS Safety Net threshold.
80% of the out of pocket amount.
Original Medicare Safety Net (OMSN)
For 2023, the OMSN threshold is $531.70. We review it each year on 1 January, in line with any rise in the cost of living (consumer price index). If you're an individual, you don't need to do anything – you'll automatically get the higher rebate once you reach the threshold.
A PBS Safety Net family is either: a couple who are legally married and not separated. a couple in a de facto relationship, with or without dependent children. a single person with dependent children.