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PBS Safety Net vs Medicare Safety Net: How to Maximise Both in 2026

Updated March 2026 · 14 min read

Australia has two separate Safety Nets that cap your annual healthcare costs — one for prescriptions, one for medical services. Most Australians only know about one, and many don't track either.

Used together, the PBS Safety Net and the Medicare Safety Net can save a household well over $1,000 per year. This guide explains how they differ, how they work together, and how to make sure you're getting every dollar you're entitled to.

The Two Safety Nets at a Glance

Feature	PBS Safety Net	Medicare Safety Net
What it covers	PBS prescription medicine co-payments	Out-of-pocket costs for Medicare services (GP, specialists, pathology, imaging)
2026 thresholds	General: $1,637.20 / Concessional: $326.40	Original: $560.40 / Extended: $820.30 (general)
After threshold	PBS scripts are free for rest of year	Higher Medicare rebates for rest of year
Resets	1 January each year	1 January each year
Family pooling	Yes (must register)	Yes (must register)
How to track	myGov, Medicare app, pharmacy card	myGov, Medicare app, call 132 011
Administered by	Services Australia (Medicare)	Services Australia (Medicare)

Key point

They are completely independent. Reaching one doesn't affect the other. You can — and should — track both.

PBS Safety Net: Free Prescriptions After the Threshold

The PBS Safety Net caps your annual spending on PBS prescription medicines. Once you reach the threshold, every PBS script for the rest of the calendar year is free.

2026 PBS Safety Net Thresholds

Category	Threshold	Co-Payment	Scripts to Reach	After Threshold
General	$1,637.20	$31.60/script	~52 scripts	Free
Concessional	$326.40	$7.70/script	~43 scripts	Free

Source: Services Australia.

Who Benefits Most?

You're likely to reach the PBS Safety Net if you:

Take 5+ regular medications (general patients: ~5 scripts/month reaches threshold in ~10 months)
Are a concessional patient on multiple medicines (threshold is lower at $326.40)
Have family members' co-payments pooled on a single Safety Net card

What Counts

Standard PBS co-payments ($31.60 general / $7.70 concessional)
Under co-payment purchases (PBS medicines priced below the standard co-payment)

Does not count:

Brand premiums (the extra charge for brand-name over generic)
Non-PBS medicines, vitamins, supplements
Scripts from pharmacies not linked to your Safety Net record

How to Maximise It

Register your family — pool co-payments from all eligible members
Use one pharmacy (or ensure all are linked to your Medicare record)
Ask about 60-day dispensing — fewer scripts means slower progress to the threshold, but lower total cost. For most patients, the co-payment savings outweigh the delayed threshold.
Choose generics — brand premiums don't count towards the Safety Net, so they're wasted money in the context of reaching the threshold

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Medicare Safety Net: Higher Rebates After the Threshold

The Medicare Safety Net caps your out-of-pocket costs for Medicare-covered medical services. After the threshold, Medicare pays a larger share of your bills.

2026 Medicare Safety Net Thresholds

There are two layers:

Original Medicare Safety Net

Threshold: $560.40
What counts: Gap between Medicare rebate and the MBS schedule fee
After threshold: Medicare pays 100% of schedule fee (up from 85%)

Extended Medicare Safety Net (EMSN)

Threshold (general): $820.30
Threshold (FTB-A/concession): $560.40
What counts: Total out-of-pocket costs (what you paid minus what Medicare rebated)
After threshold: Additional 80% rebate on future out-of-pocket costs (subject to per-service caps)

Who Benefits Most?

You're likely to reach the Medicare Safety Net if you:

See specialists who don't bulk-bill (out-of-pocket gaps add up quickly)
Have regular pathology or imaging with gap charges
Use private mental health services (psychiatrists, Medicare-eligible psychologists)
Are pregnant and seeing private obstetricians
Have a chronic condition requiring frequent specialist visits

How to Maximise It

Register your family — combine costs from you, your partner, and dependants
Track via myGov — check quarterly so you know when you're approaching the threshold
Time non-urgent appointments — if you're close to the threshold late in the year, schedule services before 31 December rather than January
Understand EMSN per-service caps — some services have maximum benefit limits

For a detailed guide, see our Medicare Safety Net 2026 guide.

How They Work Together: A Real-World Example

Linda is a 62-year-old general patient who takes 6 regular PBS medicines and sees a cardiologist and endocrinologist quarterly (neither bulk-bills).

Linda's PBS Safety Net

Item	Detail
Monthly PBS scripts	6 (some on 60-day dispensing = 4 scripts/month effective)
Monthly co-payments	4 x $31.60 = $126.40
Months to reach threshold	$1,637.20 / $126.40 = ~13 months
Result	Doesn't quite reach PBS Safety Net this year

With family registration

If Linda's spouse also takes 2 medicines and they register as a family: combined monthly co-payments = $126.40 + $63.20 = $189.60. Months to threshold: $1,637.20 / $189.60 = ~8.6 months (September). Free scripts from October onwards = ~$570 saved.

Linda's Medicare Safety Net

Item	Detail
Cardiologist	$320 charged, $158 rebate. Out-of-pocket: $162 x 4 visits = $648/year
Endocrinologist	$280 charged, $132 rebate. Out-of-pocket: $148 x 4 visits = $592/year
Blood tests	$15 gap x 6 tests = $90/year
Total annual out-of-pocket	$1,330

Original threshold ($560.40): Reached after ~4 specialist visits (by April)
Extended threshold ($820.30): Reached by ~June
After EMSN: Remaining visits cost 80% less out-of-pocket
Estimated saving: ~$400–$500 on second-half-year specialist visits

Linda's Combined Saving

Safety Net	Annual Saving
PBS (family registration)	~$570
Medicare (Original + Extended)	~$450
Total	~$1,020

Without tracking and family registration, Linda would miss most of these savings.

Side-by-Side Comparison

Question	PBS Safety Net	Medicare Safety Net
What do I pay for?	Prescriptions (pharmacy)	Medical services (doctors, specialists, tests)
How do I reach it?	Fill enough PBS scripts	Pay enough out-of-pocket for Medicare services
What happens when I reach it?	Scripts become free	Rebates increase (less out-of-pocket per visit)
Can I pool with family?	Yes	Yes
How do I register family?	Ask pharmacy or call Medicare	myGov or call Medicare (132 011)
Where do I track it?	myGov / Medicare app / pharmacy card	myGov / Medicare app
Does it reset?	1 January	1 January
Is it automatic?	Yes (if pharmacies record correctly)	Yes (if Medicare processes claims)

Common Mistakes

1. Confusing the Two

The PBS Safety Net and Medicare Safety Net are separate programmes. Reaching one has no effect on the other. You need to track both independently.

2. Not Registering Family for Either

Family registration is not automatic for either Safety Net. You must actively register each year. Without registration, each family member is tracked separately — and may never individually reach the threshold.

3. Using Multiple Pharmacies Without Linking

If you fill scripts at different pharmacies and they're not all linked to your Medicare Safety Net record, some co-payments may not count. Use one pharmacy, or ensure all are recording against your Medicare card.

4. Not Checking Balances

Many Australians cross a Safety Net threshold without knowing it. The savings only help if you're aware — particularly for the PBS Safety Net, where you need to present your Safety Net card or entitlement at the pharmacy.

5. Ignoring the Medicare Safety Net Entirely

The Medicare Safety Net gets far less attention than the PBS Safety Net, but for anyone seeing non-bulk-billing specialists, it can be equally or more valuable.

Related Medicine Guides

PBS Co-Payment Calculator PBS Safety Net Tracker 60-Day Prescriptions: What You Need to Know Medicare Safety Net 2026: How to Track Your Threshold and Save

Frequently Asked Questions

What is the difference between the PBS Safety Net and Medicare Safety Net?

The PBS Safety Net covers prescription medicine co-payments — once you reach the threshold, PBS scripts are free for the rest of the year. The Medicare Safety Net covers out-of-pocket costs for medical services (specialists, pathology, imaging) — once you reach the threshold, Medicare rebates increase for the rest of the year. They are separate programmes.

Can I benefit from both Safety Nets at the same time?

Yes. The PBS and Medicare Safety Nets are completely independent. You can reach and benefit from both in the same calendar year. Someone taking multiple medications and seeing specialists regularly could save over $1,000/year across both programmes.

Do I need to register separately for each Safety Net?

If you want to combine family members’ costs, yes — you need to register for family pooling separately for each Safety Net. The PBS Safety Net family registration is done through your pharmacy or Medicare. The Medicare Safety Net family registration is done through myGov or by calling Medicare on 132 011.

What are the 2026 thresholds for each Safety Net?

PBS Safety Net: $1,637.20 (general) or $326.40 (concessional). Medicare Safety Net: $560.40 (Original) and $820.30 (Extended, general) or $560.40 (Extended, concession/FTB-A). All thresholds reset on 1 January each year.

How do I track both Safety Nets?

Both can be tracked through your Medicare online account via myGov or the Express Plus Medicare app. The PBS Safety Net can also be tracked via a physical pharmacy card. Check your balances quarterly to know when you’re approaching each threshold.

Do bulk-billed GP visits count towards the Medicare Safety Net?

No. Bulk-billed services have zero out-of-pocket cost, so they don’t contribute to the Medicare Safety Net threshold. Only the gap amounts you actually pay out of pocket count.

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General information only, not personal financial advice. Safety Net thresholds are set by the Australian Government and are subject to annual indexation. Always confirm your Safety Net status via myGov or by calling Medicare on 132 011. Data sourced from Services Australia, PBS.gov.au, Health.gov.au.