Goods and Services Tax (GST)

How GST applies to Medicare benefits and the Pharmaceutical Benefits Scheme (PBS).

Generally, Medicare and Pharmaceutical Benefits Scheme (PBS) payments or services supplied to the public are Goods and Services Tax (GST) free. This applies to:

  • Medicare benefits
  • medicines supplied under the PBS
  • income tested rebate on private health insurance.

However, the Australian Taxation Office (ATO) has advised that GST should apply to some payments. These include:

  • pharmacies, pharmacists and other approved dispensers
  • radiation-oncology clinics
  • colostomy and ileostomy associations, and paraplegic and quadriplegic associations
  • wholesale medicine suppliers for the Botox and in-vitro fertilisation or gamete intra-fallopian transfer programs
  • simplified billing agents
  • software suppliers.

Under those circumstances, the payment itself is deemed under GST law to be a ‘consideration for a supply’ - that is, a payment for a service that you are deemed to be rendering to us or the Australian Government.

As a result, we need to collect some information from you to ensure that you continue to get Medicare payments in full.

Find out more about Goods and Services Tax for the PBS.

Page last updated: 15 June 2024.
QC 74155