Generally, Pharmaceutical Benefits Scheme (PBS) payments, services and medicines supplied to the public are goods and services tax (GST) free.
Payments to service providers and suppliers
Many health services, such as Medicare and the PBS, are free from GST.
Program and incentive payments can be made to pharmacies, pharmacists and other approved dispensers.
PBS payments to PBS approved dispensers that incur GST include Prescriber Bag supplies claimed via PBS Online and PBS Safety Net card issuance fees.
GST still applies to some payments. This includes some paid on behalf of the Department of Veterans’ Affairs where the payment itself is deemed under GST law to be a ‘consideration for a supply’.
This is why we need to collect some information from you to make sure you get a payment in full.
What suppliers and providers need to do
To continue getting payments in full, you need to meet some requirements including the following:
- give us the Australian Business Number (ABN) of the enterprise
- enter into a Recipient Created Tax Invoice Agreement with us
- have this tax invoice agreement signed by an appropriate representative of the enterprise.
You also need to advise us if you don’t have an ABN or if your ABN or Medicare Reference ID details change.
Provide this information to us by completing the Notification of Australian Business Number and reference identification for tax treatment purposes and recipient created tax invoice agreement form (HW055).