Pharmacy Regulations

Types of Australian Retail Pharmacies

In Australia, retail pharmacies fall into two categories:

  1. Pharmaceutical Benefits Scheme (PBS)–approved pharmacies

  2. Private pharmacies

All pharmacies are regulated by the Pharmacy Board of Australia and the Department of Human Services (Medicare). Medicines and medical devices are further regulated by the Therapeutic Goods Administration (TGA) under the Department of Health.

PBS vs. Private Pharmacies

PBS-Approved Pharmacies

  • Licensed to dispense scheduled medicines under the PBS.

  • Can claim subsidies from Medicare on behalf of eligible Medicare card holders.

  • Subsidies typically apply to:

    • Concession card holders

    • War veterans (under the Repatriation Pharmaceutical Benefits Scheme – RPBS)

    • Prescription medicines subsidised by Medicare

  • Can dispense prescriptions as PBS/RPBS or private prescriptions.

Private Pharmacies

  • Can only dispense prescriptions as private (no PBS subsidy).

Cost Differences for Non-Concession Families

If you do not hold a concession card, the key difference depends on whether the medicine is subsidised under the PBS.

As of 1 January 2017:

  • General patients pay a maximum of $38.80 for PBS medicines.

  • Concession patients pay a maximum of $6.30.

Prices for PBS medicines are regulated by the government. Private prescriptions, however, are not regulated and have no set maximum price.

Medication Categories in Australian Pharmacies

Australian pharmacies can supply the following scheduled medicines:

  • Schedule 2 (S2) – Pharmacy Medicine

  • Schedule 3 (S3) – Pharmacist Only Medicine

  • Schedule 4 (S4) – Prescription Only Medicine

  • Schedule 8 (S8) – Controlled Drugs

What Scheduling Means for Consumers

Medicine scheduling is regulated by the TGA to protect public safety.

  • The schedule appears clearly on the medicine’s packaging.

  • Scheduled medicines can only be legally supplied in pharmacies.

  • Unsheduled medicines (e.g., small packs of paracetamol) may be sold in supermarkets, petrol stations, or newsagents.

Pharmacies are the only businesses in Australia authorised to supply:

  • Pharmacy Medicines

  • Pharmacist Only Medicines

  • Prescription Only Medicines

  • Controlled Drugs