PBS remuneration and funding update
Wholesale Mark-Up changes
Under the First Pharmaceutical Wholesaler Agreement (1PWA), changes to the Wholesale Mark-Up (WMU) will be introduced from 1 July 2026. The changes restructure the mark-up tiers that apply to S85 medicines, and now also S100 medicines.
A small number of medicines may experience changes in their AHI in all tiers, due to a change in their wholesaler mark-up shifting them to a new AHI tier. S100 medicines will now be covered by delivery obligations in the same way that S85 medicines are under the CSO.
| Price Band | Current | From July 1 2026 |
|---|---|---|
| Very low cost medicines (<$5.50 ex-manufacturer) | $0.41 (applies to “relevant quantity”, so per-pack cannot be less than this) | $0.24 (per pack quantity) |
| Low to Mid-range medicines ($5.50 - $1000) | 7.52% (max $54.14) | 4.3% |
| High-cost medicines ($1000 - $10000) | $54.14 (capped from $720) | $43 + 2% of the amount over $1000 |
| Very High-cost medicines (+$10000) | $54.14 | $223 |
The aggregate effect of these WMU changes is estimated to reduce pharmacist remuneration by $10.95 million over the remaining 8CPA period. To offset this reduction, an amendment to 8CPA has introduced the following additional remuneration:
- A one cent addition to the Tier One AHI fee after CPI indexation ($8.87 million)
- A one cent addition to the ACSS Component 1 payment after CPI indexation ($1.59 million)
- An increase in the funding pool available for ACSS Component 2 payments ($0.49 million)
PBS Fees
The Department of Health, Disability and Ageing has confirmed the changes to PBS fees from 1 July. The changes are summarised in the tables below:
| Payment Type | Fees from July 2025 | Fees from July 2026 |
|---|---|---|
| Dispensing Fee (Ready Prepared) | $8.88 | $9.24 |
| Dispensing Fee (Extemporaneously Prepared) | $10.92 | $11.28 |
| Dangerous Drug Fee | $5.50 | $5.73 |
| Tier One AHI Fee | $4.91 | $5.12 |
| Tier Two AHI Fee | $4.91 (Tier 1 AHI) + 5% of the amount by which the price to pharmacists for maximum quantity exceeds $100 | $5.12 (Tier 1 AHI) + 5% of the amount by which the price to pharmacists for maximum quantity exceeds $100 |
| Tier Three AHI Fee | $99.91 (Tier 1 AHI + $95.00) | $100.12 (Tier 1 AHI + $95.00) |
| Safety Net Recording Fee (Ready Prepared) | $1.48 | $1.54 |
| Safety Net Recording Fee (Extemporaneously Prepared) | $1.98 | $1.99 |
ACSS Payments
8CPA provides Additional Community Supply Support (ACSS) payments to assist pharmacies with the introduction of 60-day dispensing. The ACSS has a fixed funding pool of $2.111 billion and is adjusted every six months based on actual dispensing volumes to ensure total remuneration remains aligned with the agreed funding envelope. The payment rates for 1 July to 31 December 2026 are shown in the table below:
| ACSS Component | Payment Type | Fees from Jan 2026 | Fees from July 2026 |
|---|---|---|---|
| 1 | Payment for each supply of a PBS or RPBS prescription of a section 85 medicine with increased dispensing quantities dispensed by Approved Pharmacists (Commonwealth subsidised) | $4.91 per dispense | $5.12 dispense |
| 2 | Payment for each supply of a PBS or RPBS prescription of a section 85 medicine dispensed by Approved Pharmacists (Commonwealth subsidised) | $1.21 per dispense | $0.13 per dispense |
It is important to note that this change does not represent a reduction in overall 8CPA funding to community pharmacy. It reflects the system operating as intended to deliver the full ACSS funding evenly across the 8CPA period.
Page last updated on: 18 June 2026