Freeze on PBS patient co-payments and removal of allowable discount - 2026 update

What is happening?

Previously, both general and concessional PBS co-payments were indexed on 1 January each year, in line with the Consumer Price Index.

In 2024, the co-payments were $31.60 for general patients and $7.70 for concessional patients.

In 1 January 2025, the government introduced:

• a 1-year freeze on indexation for PBS co-payments for general patients
• a 5-year freeze on indexation for PBS co-payments for concessional patients.

Previously, if the total cost of a PBS medicine was above a patient’s co-payment, pharmacists could reduce the co-payment for that patient by applying an allowable discount, up to an amount of $1, for each supply.

From 1 January 2025, the allowable discount (aka ‘$1 discount’) was set to be phased out (over 1 or 5 years) while annual increases to the general and concessional PBS co-payments remained frozen.

The discount was set to decrease by the amount of indexation that would have otherwise applied to the general or concessional patient PBS co-payment, as relevant, until it reaches zero.

There will be no copayment discount allowed for General scripts for non-IDR drugs from January 2026. Any preset discounts from previous years will not apply from 1 January 2026.

What are the Fee Changes from 1 January 2026?

What will the new discount caps be?

Copayment discounting is being phased out, with the following discounting rules to take effect from 1 January.

Fred Dispense changes to support the removal of discount

The Discount Rules screen has been updated.

If the price entered is less than the PBS allowable discounted price, the following messages will display:

General

Concession