PBS wholesale mark-up changes take effect from 1 July

Changes to the Pharmaceutical Benefits Scheme (PBS) wholesale mark-up framework will take effect from 1 July 2026, marking one of the most significant updates to pharmaceutical wholesaler funding arrangements in recent years.

The changes form part of the First Pharmaceutical Wholesaler Agreement (1PWA), an agreement between the Australian Government and the National Pharmaceutical Services Association that sets wholesale mark-up and Community Service Obligation funding arrangements for pharmaceutical wholesalers. The agreement is designed to support timely and reliable PBS medicine supply to community pharmacies across Australia and continued investment in the medicines distribution network.

Under the new framework, both the wholesale mark-up rate structure and the method used to calculate wholesale mark-ups will change. From 1 July, wholesale mark-ups will be based on the Ex-Manufacturer Price of the pack quantity dispensed rather than the current Relevant Quantity calculation method.

The revised arrangements will apply to Section 85 PBS medicines supplied through community pharmacies and eligible Section 100 medicines supplied by approved pharmacists. Medicines supplied through approved hospitals and approved medical practitioners will continue under existing arrangements. Certain Section 100 programs, including the Efficient Funding of Chemotherapy Program and the Botulinum Toxin Program, are excluded from the changes.

What isn’t changing

The Department has confirmed the reforms will not affect:

• PBS patient co-payments
• Prescribing arrangements
• The list of medicines available on the PBS
• Access to PBS medicines through community pharmacies
• Hospital supply arrangements

Community pharmacies will continue to dispense PBS medicines as normal, while medicines supplied through approved hospitals and approved medical practitioners will remain under existing arrangements.

The Community Service Obligation framework, which helps ensure reliable access to medicines across metropolitan, regional and remote Australia, will also remain in place. The revised wholesale mark-up rates will not be indexed during the term of the agreement, which runs until 31 December 2029.

While largely administrative from a patient perspective, the changes represent an important update to the way PBS medicine distribution is funded. Pharmacy operators, wholesalers and organisations involved in medicines supply are expected to review the new arrangements ahead of their commencement on 1 July.

Further information

Read the Australian Government’s First Pharmaceutical Wholesaler Agreement fact sheet for a detailed overview of the revised wholesale mark-up arrangements, implementation guidance and frequently asked questions.