National Health (Supplies of out-patient medication) Amendment Determination 2025

Administered by Department of Health, Disability and Ageing

Legislation au F2025L01524 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

National Health Act 1953

 

National Health (Supplies of out-patient medication) Amendment Determination 2025

 

PB 151 of 2025

 

Purpose and operation

 

The National Health (Supplies of out-patient medication) Amendment Determination 2025 (Amendment Determination) amends the National Health (Supplies of out-patient medication) Determination 2019 (No. 2) (Principal Determination) to update the maximum value of the supply of out-patient medication to a person who is a general patient and who is not a holder of a concession card.

 

This Amendment Determination updates the maximum value of the supply of out-patient medication to a person who is a general patient and who is not a holder of a concession card from $25.30 to $20.00, from 1 January 2026. This is the amount taken to have been paid to a public hospital for supplies of out-patient medication for the purposes of the Pharmaceutical Benefits Scheme (PBS) Safety Net threshold.

 

 

Background

 

Part VII of the National Health Act 1953 (Act) regulates when benefits will be paid by the Commonwealth in respect of drugs and medicinal preparations that are listed on the PBS. As such, it is the legislative basis by which the Commonwealth provides reliable, timely and affordable access to a wide range of medicines to Australians.

 

Division 1A of Part VII of the Act provides for a Safety Net scheme in relation to pharmaceutical benefits. The Safety Net scheme is designed to provide financial protection for those patients and their families who require a large number of pharmaceutical benefits.

 

Subsection 84(1) of the Act defines out-patient medication as a drug or medicinal preparation supplied through the out-patient department of a public hospital. A drug or medicinal preparation that is supplied by a public hospital as out-patient medication may or may not be a pharmaceutical benefit under Part VII of the Act.

 

Subsection 84BA(1) of the Act provides that the purpose of section 84BA is to make provision so that account may be taken of payments made by a person to a public hospital authority for supplies of out-patient medication, when it is being ascertained, for the purpose of Part VII of the Act, whether the person is eligible to be issued with a Safety Net concession card or an entitlement card.

 

Subsection 84BA(2) of the Act provides that prior to the commencement of the relevant entitlement period (a calendar year), the Minister must determine in writing the amounts that will be taken to have been paid to a public hospital for supplies of out-patient medication made by a hospital during the relevant entitlement period.

 

Subsection 84BA(3) of the Act provides that, in making a determination, the Minister may determine:

  1.       different amounts in respect of a supply of out-patient medication, having regard to the State or Territory in which the hospital supplying the medication is situated; and
  2.      different amounts in respect of supplies made to:
  1.             concessional beneficiaries and their dependants (within the meaning of subsection 84(4) or (7) of the Act),
  2.             holders of a concession card; and
  3.             general patients (other than holders of a concession card).

 

While PBS co-payments are usually indexed at the start of each year in line with the consumer price index, the general patient charge was frozen for 2025, so the maximum value of the supply of out-patient medication was not updated in 2025.

 

The amendment to the Principal Determination aligns the maximum value of the supply of outpatient medication to the reduction of the PBS general patient charge from $31.60 to $25.00 as of 1 January 2026.

 

 

Authority

 

Subsection 84BA(2) of the Act provides that the Minister must determine the amount that will be taken to have been paid to a public hospital for supplies of out-patient medication for the relevant entitlement period for the purposes of the PBS patient Safety Net threshold.

 

 

Reliance on subsection 33(3) of the Acts Interpretation Act 1901

 

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

 

 

Commencement

 

This instrument commences 1 January 2026.

 

 

Consultation

 

Historically, the Department of Health, Disability and Ageing has consulted with state and territory health departments through the Highly Specialised Drugs Working Party (HSDWP). The HSDWP was a working party of the Australian Health Ministers’ Advisory Council (AHMAC) and was made up of representatives from each state and territory health department and the Commonwealth.

 

Through the HSDWP, the state and territory health departments agreed to the value of out-patient medication being 80% of the general co-payment each year, excluding hospitals which are in Queensland or participating in the Pharmaceutical Reform Arrangements.

 

State and territory health departments have been provided with the new maximum value of the supply of out-patient medication to a person who is a general patient and who is not a holder of a concession card and no additional comments have been received.

 

 

General

 

This instrument is a legislative instrument for the purposes of the Legislation Act 2003.

 

Details of this instrument are set out in Attachment A.

 

This instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.


 


ATTACHMENT A

 

Details of the National Health (Supplies of out-patient medication) Amendment Determination 2025

 

Section 1 – Name

 

Section 1 provides that the name of the instrument is the National Health (Supplies of out-patient medication) Amendment Determination 2025. The instrument can also be cited as PB 151 of 2025.

 

Section 2 – Commencement

 

Section 2 provides that the instrument commences on 1 January 2026.

 

Section 3 – Authority

 

Section 3 provides that the instrument is made under section 84BA of the National Health Act 1953.

 

Section 4 – Schedules

 

This section provides that each instrument that is specified in a Schedule to the instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to the instrument has effect according to its terms.

 

Schedule 1—Amendments

 

National Health (Supplies of out-patient medication) Determination 2019 (No 2)

 

This section repeals the maximum value of the supply of out-patient medication to a person who is a general patient and who is not the holder of a concession card, which is currently $25.30. This section replaces the amount of $25.30 with $20.00.


ATTACHMENT B

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

National Health (Supplies of out-patient medication) Amendment Determination 2025

 

This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Disallowable Legislative Instrument

This Disallowable Legislative Instrument is made pursuant to subsection 84BA(2) of the National Health Act 1953, which determines the amounts that will be taken to have been paid to a public hospital for supplies of out-patient medication.

 

This instrument makes an amendment to the National Health (Supplies of out-patient medication) Determination 2019 (No. 2) to update the maximum value a general patient pays for out-patient medications.

 

Human rights implications

This Disallowable Legislative Instrument engages Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

 

The Pharmaceutical Benefits Scheme (PBS) is a benefit scheme which assists with advancement of this human right by providing for subsidised access to medicines.

 

This legislative instrument specifies what will be taken to have been paid to a public hospital for supplies of out-patient medication for the purposes of the PBS Safety Net threshold.

 

The Safety Net scheme is designed to provide financial protection for those patients and their families who require a large number of pharmaceutical benefits.

 

Conclusion

This legislative instrument is compatible with human rights because it advances the protection of human rights.

 

Rebecca Richardson

Assistant Secretary

PBS Listing, Pricing and Policy Branch

Technology Assessment and Access Division

Department of Health, Disability and Ageing

Overview

The National Health (Supplies of out-patient medication) Amendment Determination 2025 is a legislative instrument designed to amend the National Health (Supplies of out-patient medication) Determination 2019 (No. 2). Enacted by the Australian Parliament, this amendment aims to update the maximum value of the supply of out-patient medication to a person who is a general patient and who is not a holder of a concession card. Specifically, it reduces the maximum value from $25.30 to $20.00, effective from 1 January 2026. This adjustment aligns with the Pharmaceutical Benefits Scheme (PBS) Safety Net threshold, ensuring that the financial burden on patients requiring substantial pharmaceutical benefits is appropriately managed. The policy objective is to provide reliable, timely, and affordable access to medicines for Australians, thereby supporting the broader aim of enhancing public health outcomes. The Amendment Determination is made under section 84BA of the National Health Act 1953, which empowers the Minister to determine the amounts taken to have been paid to a public hospital for supplies of out-patient medication. This legislative action is taken to ensure the legislative instrument is compatible with human rights, particularly Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights, by facilitating the progressive realisation of the right to the highest attainable standard of physical and mental health. The amendment has been developed in consultation with state and territory health departments through the Highly Specialised Drugs Working Party, ensuring a coordinated approach to health policy across Australia.

Scope and Application

The National Health (Supplies of out-patient medication) Amendment Determination 2025 amends the National Health (Supplies of out-patient medication) Determination 2019 to adjust the maximum value of the supply of out-patient medication to a person who is a general patient and who is not a holder of a concession card. This change applies from 1 January 2026 and reduces the maximum value from $25.30 to $20.00, aligning with the reduction of the Pharmaceutical Benefits Scheme (PBS) general patient charge. This adjustment is significant in determining the eligibility of patients for the PBS Safety Net threshold, ensuring that the scheme provides financial protection to those requiring substantial pharmaceutical benefits. The amendment is made under the authority of subsection 84BA(2) of the National Health Act 1953, which empowers the Minister to determine the amounts taken to have been paid to a public hospital for supplies of out-patient medication for the relevant entitlement period. This legislative instrument is compatible with human rights, particularly engaging Articles 2 and 12 of the International Covenant on Economic, Social and Cultural Rights by advancing the right to the highest attainable standard of physical and mental health through the PBS Safety Net scheme.

Key Provisions

The main operative sections of the National Health (Supplies of out-patient medication) Amendment Determination 2025 (Amendment Determination) are found in Section 1, which names the instrument and allows it to be cited as PB 151 of 2025. Section 2 specifies that the instrument commences on 1 January 2026. Section 3 states that the instrument is made under section 84BA of the National Health Act 1953. Finally, Section 4 refers to the schedules and states that each instrument specified in a Schedule is amended or repealed as set out in the applicable items in the Schedule concerned. Schedule 1 of the Amendment Determination repeals the maximum value of the supply of out-patient medication to a general patient who is not a holder of a concession card, which is currently $25.30, and replaces it with $20.00. The Amendment Determination imposes obligations on parties or entities it governs, specifically relating to the payment for out-patient medication supplied by public hospitals. The Minister must determine the amount that will be taken to have been paid to a public hospital for supplies of out-patient medication for the relevant entitlement period for the purposes of the Pharmaceutical Benefits Scheme (PBS) Safety Net threshold. This determination must be made in writing prior to the commencement of the relevant entitlement period, a calendar year. The Minister is required to consider different amounts in respect of a supply of out-patient medication, taking into account the State or Territory in which the hospital supplying the medication is situated, and also different amounts in respect of supplies made to concessional beneficiaries and their dependants, holders of a concession card, and general patients who are not holders of a concession card. The Amendment Determination does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, it is clear that compliance with the Amendment Determination is necessary to ensure that the maximum value of the supply of out-patient medication is correctly applied for the purposes of the PBS Safety Net threshold. Failure to comply with the requirements of the Amendment Determination could potentially result in financial penalties or legal action for non-compliance with the National Health Act 1953. The maximum penalties for breaches of the National Health Act 1953 are not specified in the Amendment Determination, but they can be found in the main Act or in other relevant legislation.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.