Pharmaceutical Benefits Scheme (PBS) Safety Net 

This page provides general educational information about the Pharmaceutical Benefits Scheme (PBS) Safety Net and how it operates within the Australian health system.

 

The Pharmaceutical Benefits Scheme (PBS) is a national program funded by the Australian Government that subsidises the cost of many prescription medicines. Even with subsidies, people who require multiple medicines throughout the year may have ongoing out-of-pocket costs.

 

Why the PBS Safety Net exists

The PBS Safety Net is designed to provide additional financial protection for individuals and families whose eligible spending on PBS medicines reaches a set annual threshold.

 

In general, it aims to:

• Reduce the cumulative financial impact of regular or long-term medicine use

• Provide increased government support after a defined level of spending has been reached

• Help limit the risk that the cost of prescribed medicines becomes financially burdensome over time

 

How it works within the system

Each calendar year, eligible out-of-pocket costs for PBS-listed medicines are counted toward an annual threshold. Once that threshold is reached, the amount payable for eligible medicines is reduced for the remainder of that calendar year.

 

Thresholds and arrangements are set by legislation and policy. They may change over time. Different thresholds may apply depending on factors such as concession status and family registration arrangements.

 

The PBS Safety Net forms part of Australia’s broader publicly funded medicines system. Decisions about prescribing are made by healthcare professionals. The PBS determines which medicines are subsidised and the level of subsidy, in accordance with national policy.

 

Official external information sources

For current and authoritative information, readers may refer to:

• The Australian Government Department of Health, Disability and Ageing PBS Safety Net and cost savings website (https://www.health.gov.au/cheaper-medicines/safety-net-and-cost-savings?language=en)

• Services Australia (Medicare) website for practical information about PBS Safety Net registration and claims processes (https://www.servicesaustralia.gov.au/pbs-safety-net-thresholds?context=22016)

• The PBS website for details about listed medicines and current Safety Net thresholds (https://www.pbs.gov.au)

 

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Important information

This is general educational information only. It does not determine eligibility, entitlement, or access to medicines. Health system rules, funding arrangements, and thresholds change over time, and official Australian Government sources prevail. Access to services and medicines may vary depending on individual circumstances and location. Clinical decisions are made by healthcare professionals. No professional relationship is created by using this website. If there is any difference between this page and published government information, official government sources prevail.

 

 

Last reviewed: February 2026