Whether it’s filling a script for your child’s asthma puffer or picking up your blood pressure pills, there’s one unsung hero quietly working behind the scenes to keep medicine costs manageable: the Pharmaceutical Benefits Scheme, or PBS.
If you’ve ever paid less than full price for prescription medication, chances are you’ve already benefited from it. But what exactly is the PBS, and how does it work? Here’s exactly what you need to know.
What is the PBS, and who is eligible?
Put simply, the PBS is a government initiative that helps reduce the out-of-pocket cost of prescription medications. It has been around since 1948, and today it covers more than 5,000 brands of medicine used to treat everything from infections to chronic illnesses and cancer.
The PBS works by subsidising medicines, so you only pay a portion of the price, with the government picking up the rest. It’s available to anyone with a valid Medicare card.
Is every medication on the PBS?
No. Only approved prescription medications are included. You can search the full list at pbs.gov.au.
What do the 2025 PBS changes mean?
There have been some major updates this year, and for many families, it means more money in their pockets. Here are the biggest ones to be across.
Cheaper scripts
From January 1, the federal government officially capped the cost of PBS medications to $25 per prescription for general patients.
That’s down from $30 in 2023 and could save regular medicine users hundreds over the year. If you’re a concession card holder (including pensioners and low-income earners), the cost remains $7.70 per script.
New safety net thresholds
The PBS Safety Net is a built-in support system that kicks in once you’ve spent a certain amount on PBS meds in a calendar year. Once you reach the threshold, your prescriptions are either free (for concession card holders) or significantly cheaper (for general patients).
In 2025, those thresholds are:
- $277.20 for concession card holders
- $1,694.00 for general patients
You’ll need to keep track of your scripts (your pharmacy can help with that) and apply for a PBS Safety Net card once you reach the limit.
Support for women’s health
In March, the government announced a $100 million expansion of the PBS to include more medicines specifically for women, including treatments for endometriosis, contraception, and fertility support.
One major win? The new-generation contraceptive pill Slinda is now PBS-listed, saving users more than $250 a year. The endometriosis drug Ryeqo, is also now subsidised, offering relief to the estimated 8,500 women who, without the subsidy, might pay more than $2,700 for a year of treatment.
Health Minister Mark Butler called it a “landmark moment” in prioritising women’s health and affordability.
“Our hard-fought reforms are delivering cheaper medicines to millions of Australians – already saving them $1.1 billion in out-of-pocket costs,” he said in a press release when the changes were announced.
It’s not all smooth sailing, though. As of May 2025, Australia is experiencing shortages of around 400 medicines, with about 30 of them deemed ‘critical’ by the Therapeutic Goods Administration (TGA). These include drugs used to treat ADHD, diabetes, heart disease and cancer.
The government is exploring solutions – including increasing local medicine production – but for now, if your usual script is unavailable, speak to your doctor or pharmacist.
How to make the most of the PBS
Here are some quick tips to help you save more and stress less when it comes to your scripts.
- Ask your doctor whether your prescription is PBS-listed – and if not, if there’s a listed alternative that could work for you.
- Use the PBS website to check the current list of subsidised medicines and prices.
- Track your spending on scripts so you don’t miss out on the Safety Net threshold – most pharmacies can help with this.
- Check for repeats. Some medications are cheaper when dispensed in larger amounts (e.g. three months’ worth at once). Your GP can advise on what’s safe.
- Concession cards count. If you hold a Seniors Health Card, Pensioner Concession Card, or Health Care Card, you’ll pay less.
