Six months ago, many Australians got some good news at the pharmacy counter. On 1 January 2026, the maximum out-of-pocket cost for many PBS prescription medicines dropped from $31.60 to $25 for people who do not have a concession card. And for concession card holders, the annual CPI increase is frozen until 2029. This means that there was no increase to the $7.70 co-payment of concession card holders currently pay.
The new $25 price means you may now pay less for many medicines listed on the PBS. For many people, this change has already made a real difference.
When the price of medicines went down, it helped millions of Australians with their weekly budgets. It can mean you do not have to weigh up your health needs against other basics like food, rent, power bills, or fuel.
That is why $25 PBS medicines are such a big win for Australians.
The lowest cost since 2004
The maximum out-of-pocket cost of PBS medicines is at its lowest level since 2004, over 20 years ago. This is also the second time PBS medicines have become more affordable. The first price drop happened in 2023, when the maximum cost went from $42.50 to $30. Then, on 1 January 2026, it dropped again from $31.60 to $25.
For many households, especially ones with multiple prescriptions, the savings have rapidly added up.
Australians have already saved millions
As of July 2026, Australians have saved big at the pharmacy counter thanks to more affordable PBS medicines, helping them afford groceries, rent, school costs, transport, and everyday life.
In a world filled with rising costs, medicines becoming more affordable offers peace of mind. It means walking into your local community pharmacy knowing the price is lower than it used to be.
“I have not needed to ration anything and I’ve gone to the chemist every single week without having to stress”.
- Jess, a Canberran on 9 medications shares how $25 PBS medicines have helped her.
What this means when you visit your community pharmacy
When you pick up a PBS medicine, your community pharmacy will automatically apply the PBS price rules that apply to you.
If you’re unsure whether your medicine is covered, your community pharmacist can help you check and explain your options.
FAQ
What is the PBS?
The Pharmaceutical Benefits Scheme, or PBS, is an Australian Government program that helps make many prescription medicines cheaper for people in Australia.
Instead of paying the full cost of many medicines, you pay a set amount. The Australian Government pays the rest of the cost for eligible PBS medicines.
This helps make important medicines more affordable and easier to access.
What are the PBS prices as of 2026?
Here are the new prices of PBS medicines:
| Category | From Jan 1, 2026* |
|---|---|
| General patients | $25.00 |
| Concessional patients | $7.70 |
| Closing the Gap (General patients) | $7.70 |
| Closing the Gap (Concessional patients) | $0.00 |
*Maximum cost per prescription
The new prices apply automatically at your community pharmacy. You don’t need to do anything special — just bring your prescription as usual.
What are the PBS prescription prices for Aboriginal and Torres Strait Islander people?
For Aboriginal and Torres Strait Islander people registered in the Closing the Gap program, PBS prescriptions are usually free if you have a Pension, Concession or Veteran’s card. If you don’t have one of these cards, the price is $7.70.
To register for the Closing the Gap program, Aboriginal and Torres Strait Islander people must visit their doctor or an Indigenous Health Services provider. The registration process is simple, and you only need to do it once, no matter where you are in Australia. Once registered, you can access the program benefits for your PBS prescriptions.
For more details about how the program works, see the Closing The Gap webpage.
References:
- Pharmaceutical Benefits Scheme: https://www.pbs.gov.au
