PBS prescription medicines will drop from $31.60 to $25 from 1st January 2026

Starting January 1, 2026, the maximum price for most medicines on the Pharmaceutical Benefits Scheme (PBS) will drop to $25.00 for general patients. This change is designed to ease the cost of living and ensure that essential medications remain affordable.

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Here is a breakdown of what this means for you and how it compares to the current system.

Key Changes to PBS Pricing

 

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Category

Current Price (2025)

New Price (from Jan 1, 2026)

General Patients (Medicare only)

$31.60

$25.00

Concessional Patients

$7.70

$7.70 (Price frozen until 2029)

Closing the Gap (General)

$7.70

$7.70

Closing the Gap (Concessional)

$0.00

$0.00

 

Important Details to Know

 

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  • Who is eligible? This reduction primarily benefits "general patients"—Australians who have a Medicare card but do not have a Commonwealth concession card (like a Pensioner Concession Card or Health Care Card).

 

  • Automatic Savings: You do not need to do anything to receive this discount. The price reduction will be applied automatically at the pharmacy counter from New Year's Day.

 

  • Historical Context: This price drop brings the cost of medicines back to roughly where it was in 2004.Without this intervention, the general co-payment was projected to rise to nearly $50.00 by 2026 due to inflation.

 

  • The Safety Net: Once you or your family spend a certain amount on PBS medicines in a calendar year (the "Safety Net threshold"), your medicines become much cheaper or even free for the rest of that year. While the co-payment is dropping, the safety net still exists to protect those with very high medical needs.

 

What if my medicine already costs less than $25?

If your medicine is already priced below the co-payment (for example, a generic script that costs $18.00), you will continue to pay the lower price.The $25.00 limit only acts as a maximum ceiling for PBS-subsidized medications.

 

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