PBS Co-payments Freeze
Prior to 2025, both general and concessional PBS co-payments were indexed on 1 January each year, in line with the Consumer Price Index. In 2024, the co-payments were $31.60 for general patients and $7.70 for concessional patients.
- From 1 January 2025:
- a 1-year freeze applies to indexation of PBS co-payments for general patients
- a 5-year freeze applies to indexation of PBS co-payments for concessional patients
- From 1 January 2025, the allowable discount began to be progressively phased out while annual increases to the PBS co-payment were frozen.
This means the maximum amount individuals pay for their PBS medicines won’t go up with indexation while the freeze on their co-payment is in place.
$1 Discount Phase Out
Prior to 2025, pharmacists could reduce the patient co-payment by applying an ‘allowable discount’, up to an amount of $1 for each supply.
- From 1 January 2025, the allowable discount began to be progressively phased out while annual increases to the PBS co-payment were frozen.
- The discount will decrease by the amount of indexation that would have applied to PBS co-payments until it reaches zero.
New Allowable Co-Payment Discount
| Patient Co-payment | Previous Year (2025) | New Year (2026) |
| General | $0.10 | $0.00 |
| Concessional | $0.80 | $0.60 |
Note
The maximum cost to patients won’t increase. Although patients who were getting the discount may see an effective increase in the price of their medicines from 1 January as the discount is decreased, they will not be worse off than if PBS co-payments had not been frozen.
The maximum cost to patients won’t increase. Although patients who were getting the discount may see an effective increase in the price of their medicines from 1 January as the discount is decreased, they will not be worse off than if PBS co-payments had not been frozen.
What You Need To Do?
If you have a PBS co-payment discount set at the store, facility, patient, or drug level, these will need to be updated accordingly.
Please refer to the following guides:
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