PBS prescription costs have dropped from $31.60 to $25 as of 1 January 2025, marking the largest reduction in the Pharmaceutical Benefits Scheme’s history. This change affects millions of Australians who rely on subsidised medications for chronic conditions and everyday health needs.
The reduction represents a saving of $6.60 per script. For patients managing multiple conditions with several medications, these savings add up quickly throughout the year.
The Australian Government implemented this change to ease cost-of-living pressures and improve medication affordability. The Department of Health and Aged Care confirms this is the first general patient co-payment decrease in the PBS’s 75-year history.
How Much You’ll Save on Regular Medications
The new $25 co-payment applies every time you fill a PBS prescription. If you take three medications monthly, you’ll save $19.80 each month or $237.60 annually.
Families managing multiple prescriptions will notice even larger savings. A household with two people each taking four regular medications could save over $600 per year.
The savings become more significant when you consider the PBS Safety Net threshold has also been reduced. Once you reach this threshold, further prescriptions become even cheaper or free.
Understanding the PBS Safety Net Changes
The PBS Safety Net protects patients who need many prescriptions throughout the year. When your total prescription costs reach a certain threshold, you pay reduced rates for the rest of the calendar year.
The general Safety Net threshold dropped from $1,644.10 to $1,350 for 2025. Once you reach this amount, you’ll pay just $7.70 per script for the remainder of the year.
The Services Australia website tracks your prescription costs automatically when you provide your Medicare card at the pharmacy. You don’t need to keep paper records, though some people still prefer to maintain their own tracking.
Concession card holders already paid lower rates and weren’t affected by this particular change. Their co-payment remains at $7.70 per script with a Safety Net threshold of $318.40.
Who Benefits Most from Lower PBS Prescription Costs
Australians managing chronic conditions see the greatest benefit from reduced PBS prescription costs. People with diabetes, heart disease, asthma, or mental health conditions often require multiple ongoing medications.
Older Australians without concession cards also benefit significantly. Many retirees who don’t qualify for a Seniors Health Card but live on modest superannuation face high medication costs.
Working families juggling household expenses alongside medical needs will find relief in the lower co-payments. The Pharmaceutical Society of Australia notes this change improves medication adherence when cost is less of a barrier.
Young adults with chronic conditions who don’t qualify for concessions particularly benefit. This group often faces financial stress while establishing careers and managing health needs simultaneously.
What Stays the Same Under the PBS?
Not everything about the PBS has changed. The range of medicines covered remains the same, with over 5,000 medications and products available at subsidised rates.
Your doctor still needs to prescribe PBS-listed medications for you to access the lower co-payment. Private prescriptions for non-PBS medicines continue at full retail price.
Pharmacists continue to dispense medications according to the same regulations and safety standards. The only difference you’ll notice is the lower price at the register.
Brand substitution rules haven’t changed. Your pharmacist may still offer a generic alternative to reduce costs further, and you can choose whether to accept it.
How to Maximise Your PBS Savings?
Register with a single pharmacy if possible. This helps ensure your Safety Net calculations remain accurate and staff become familiar with your medication needs.
Always present your Medicare card when collecting prescriptions. This ensures Services Australia records your costs toward the Safety Net threshold.
Ask your doctor about PBS alternatives if you’re paying full price for medications. Sometimes therapeutic alternatives exist on the PBS that work just as effectively.
Consider timing non-urgent prescriptions strategically if you’re close to reaching the Safety Net threshold. Once you cross that threshold, extra scripts only cost $7.70.
Conclusion
The reduction in PBS prescription costs from $31.60 to $25 delivers meaningful savings for millions of Australians. Combined with the lower Safety Net threshold, patients managing chronic conditions or multiple medications will benefit most from these changes.
These reforms represent the government’s commitment to accessible healthcare and medication affordability. The Australian Government Department of Health continues to review PBS listings and co-payment structures to ensure Australians can afford necessary treatments.
For more information about managing your medication costs, visit medicine.com.au’s guide to affordable healthcare.
FAQs
1. When did the PBS co-payment reduction take effect?
The new $25 co-payment started on 1 January 2025. Any prescriptions filled from that date forward use the reduced rate, regardless of when your doctor wrote the prescription.
2. Can I claim back the difference for prescriptions filled in late December?
No. The reduction only applies to prescriptions dispensed from 1 January 2025 onwards. Scripts filled before this date used the previous $31.60 rate and cannot be refunded.
3. Does the $25 co-payment apply to all medications?
The $25 co-payment applies only to PBS-listed medications. Private prescriptions for non-PBS medicines still cost full retail price. Your pharmacist can confirm whether your medication is PBS-listed.
4. Will chemotherapy and other hospital medications cost less?
Chemotherapy and medications administered in hospitals are typically free under different arrangements. The PBS co-payment change primarily affects medications you collect from community pharmacies for home use.
5. Do veterans pay the reduced rate?
Most veterans access medications through the Department of Veterans’ Affairs Repatriation Pharmaceutical Benefits Scheme, which has different co-payment arrangements. Contact DVA directly to understand how changes affect your specific entitlements.