Premium free dispensing incentive

From 1 July 2015, the premium free dispensing incentive (PFDI) will be applied only when brand substitution is available.

PFDI will be paid to an Approved Supplier where the Commonwealth is satisfied that such Approved Suppliers have dispensed a listed brand where all of the following circumstances apply:

  • the price of the dispensed quantity is above the patient co-payment
  • the brand with the patient contribution is substitutable with one or more brands that do not have a patient contribution, and
  • the brand that is dispensed does not have a patient contribution

PFDI will be indexed annually from 1 July 2016.

PFDI is not applicable to supplies and claims made from public hospitals participating in the Pharmaceutical Reform arrangements.

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Page last updated: 25 January 2016

This information was printed Friday 21 July 2017 from It may not include all of the relevant information on this topic. Please consider any relevant site notices at when using this material.