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S100 Pricing changes cause confusion, but pharmacy remuneration remains protected

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The Department of Health, Disability and Ageing (DoHDA) and Services Australia have advised the Pharmacy Guild of Australia that pharmacists will continue to receive the correct PBS remuneration for Section 100 (S100) medicines following the introduction of a wholesaler mark-up (WMU) from 1 July 2026.

The Guild has received reports from members who have noticed discrepancies between pricing displayed in dispensing software, the PBS website and their expected remuneration, leading to uncertainty about how the new arrangements are being applied.

Under changes introduced as part of the First Pharmaceutical Wholesaler Agreement (1PWA), most S100 medicines now include a wholesaler mark-up in the Commonwealth Price. The change applies to the majority of S100 medicines, excluding those supplied under the Efficient Funding of Chemotherapy Program and the Botulinum Toxin Program.

While the pricing update represents a significant change to how S100 medicines are funded, DoHDA and Services Australia have advised that it is not intended to alter pharmacy remuneration.

DoHDA and Services Australia have advised that pharmacists will continue to receive the correct PBS payment, including the wholesaler mark-up where applicable, regardless of what may currently be displayed in dispensing software or on the PBS website.

The inclusion of the WMU aligns S100 medicines with broader wholesale funding reforms introduced under the 1PWA. It also means S100 medicines are now subject to the same Community Service Obligation (CSO) delivery standards that apply to Section 85 medicines, providing greater consistency across PBS supply arrangements.

The source of much of the confusion appears to be differences in how pricing information is displayed. Some dispensing software systems may not yet reflect the new Commonwealth Price that includes the wholesaler mark-up. In addition, because the WMU only applies when an S100 medicine is supplied through a community pharmacy, the PBS website does not display the community pharmacy-specific price.

In response to member concerns, the Guild raised the issue with DoHDA and Services Australia. Both organisations have advised that pharmacies will be remunerated correctly, including the WMU where applicable, despite any discrepancies currently visible in software systems or public pricing information.

Pharmacists seeking to verify remuneration amounts can access the relevant pricing information through the 1 July 2026 Ex-manufacturer Pricing spreadsheet.

The Guild said it will continue working with software vendors and government agencies to ensure accurate pricing information is visible at the point of dispensing and to minimise confusion for pharmacists.

Members experiencing issues or seeking further clarification can contact the Department of Health, Disability and Ageing at pbs@health.gov.au or the Guild at PBS.Issues@guild.org.au.

Key points

  • A wholesaler mark-up now applies to most S100 medicines from 1 July 2026.
  • The change is part of the First Pharmaceutical Wholesaler Agreement (1PWA).
  • DoHDA and Services Australia have advised that pharmacy PBS remuneration is not affected and will continue to be paid correctly.
  • Some dispensing software and PBS website pricing may not currently reflect the community pharmacy price.
  • Pharmacists can confirm remuneration details via the 1 July 2026 Ex-manufacturer Pricing spreadsheet.
  • The Guild is working with government and software providers to resolve visibility issues.