The Budget is delivered under the nation's July 1 to June 30 financial year, which differs from the calendar-year fiscal cycle used in many countries — and includes a substantial uplift in funding for the Pharmaceutical Benefits Scheme and National Immunisation Program.
In Australia, the Pharmaceutical Benefits Scheme (PBS) and National Immunisation Program (NIP) are the two major national programs which subsidise medicines and vaccines.
The PBS is Australia’s national medicines subsidy program.
It reduces the cost of hundreds of essential prescription medicines so patients pay only a capped co-payment, with the Australian Government covering the remaining cost.
PBS spending rises as new medicines are listed, prices change or demand increases.
The budget measures delivered this week apply exclusively to Australia but remain of interest to a trans-Tasman readership following developments in primary care, vaccination access and medicine affordability.
This is a positive and practical reform that puts children and families first.
PGA National President Prof Trent Twomey
Childhood access expanded
A centrepiece of Australia’s budget is the decision to expand access to NIP vaccines for children up to five years of age.
The measure, secured following sustained PGA advocacy through its pre-budget submission, is backed by AUD 41.2 million over four years from 2026–27.
It is designed to lift childhood immunisation rates by removing barriers such as long wait times, limited appointment availability and difficulty accessing care outside standard business hours.
Expanding access to vaccinations through pharmacy helps take pressure off GPs and hospitals, while ensuring children get the protection they need at the right time.
Prof Trent Twomey
PGA advocacy recognised
PGA’s National President Professor Trent Twomey said the reform recognises the essential role community pharmacies play in supporting families and improving health outcomes for young children.
“This is a positive and practical reform that puts children and families first,” Professor Twomey said.
“By expanding access to NIP vaccines through community pharmacy, the government is making it easier for busy parents and carers to get their children vaccinated without long waits or unnecessary barriers.”
He said community pharmacies are ideally placed to support increased vaccine uptake.
“Community pharmacists are highly trained and trusted health professionals, and pharmacies are already delivering vaccinations safely and effectively across Australia.
“For many families, getting a child vaccinated can mean taking time off work or waiting weeks for an appointment.
“Now parents will be able to walk into their local pharmacy, speak to a healthcare professional they trust, and receive care when they need it.”
Pharmacies boost access
Australia’s more than 6,000 community pharmacies — open earlier, later and longer, including weekends and public holidays — remain the country’s most accessible frontline healthcare network.
Many people in Australia visit a pharmacy on average every three weeks, creating a unique opportunity to deliver timely, trusted preventative care close to home.
“Expanding access to vaccinations through pharmacy helps take pressure off GPs and hospitals, while ensuring children get the protection they need at the right time,” Professor Twomey said.
“It’s exactly the kind of reform that strengthens the healthcare system by making better use of Australia’s most accessible health network.”
Community pharmacists are highly trained and trusted health professionals, and pharmacies are already delivering vaccinations safely and effectively across Australia.
Prof Trent Twomey
PBS funding rises
Beyond childhood vaccination, the Australian Government has committed AUD 5.9 billion over five years for new and amended PBS and Repatriation PBS listings, reflecting updated pricing assumptions and forecast prescription volumes.
A further AUD 449.3 million will fund the listing of the Respiratory syncytial virus (RSV) vaccine Arexvy on the NIP, making it available at no cost to eligible patients.
System integrity strengthened
The budget also includes AUD 2.0 million in 2026–27 to progress cost-recovery arrangements for Health Technology Assessment processes, supporting the long-term sustainability of the PBS, MSAC and the NIP.
PBS payments are forecast to increase by AUD 123.5 million in 2026–27 and AUD 757.0 million over the forward estimates.
To strengthen system integrity, the Australian Government will invest AUD 146.8 million over four years — and AUD 17.6 million ongoing — to enhance Medicare and PBS compliance and fraud‑prevention capabilities.
Digital health investment
Several broader economic measures sit alongside the health announcements, including a 2.9 percent increase to low-income Medicare levy thresholds from the 2025–26 income year, and the permanent extension of the AUD 20,000 instant asset write‑off for small businesses from July 1, 2026.
Digital health receives a major investment, with AUD 598.3 million over two years to support the continued operation and enhancement of My Health Record ahead of expanded “sharing by default” arrangements commencing July 1, 2026.
Taken together, the budget signals a strong commitment by the Australian Government to medicine affordability, vaccination access and digital health reform.
For community pharmacy, the expansion of NIP vaccinations to children under five represents a significant policy shift — and a clear acknowledgement of the sector’s central role in improving national immunisation coverage.
