Pharmaceutical Allowance is paid to assist eligible customers who are temporarily incapacitated for study with the purchase of prescription medicines listed on the Pharmaceutical Benefit Scheme (PBS).
To qualify for Pharmaceutical Allowance, the following criteria must be met:
- be entitled to receive Living Allowance; or
- be receiving a Defence Force Income Support Allowance-like (DFISA-like) payment under the Veterans’ Entitlements Act 1986; and
- temporarily incapacitated for study or their apprenticeship, traineeship or trainee apprenticeship; or
- aged over 60 years.
A student or Australian Apprentice does not qualify for Pharmaceutical Allowance where the student or Australian Apprentice:
- is being paid Pharmaceutical Allowance by the Department of Veterans’ Affairs (DVA); or
- has a partner who is in receipt of the married rate of Pharmaceutical Allowance from DVA; or
- is receiving a maintained rate of Living Allowance under the provisions set out in 72.2.8.
Pharmaceutical Allowance is payable for absences overseas where:
- the portability provisions set out in 9.2 are met; and
- the his/her remains otherwise eligible for Pharmaceutical Allowance.
Depending on the reason for the overseas absence, the length of time for which Pharmaceutical Allowance remains payable varies:
- where the student or Australian Apprentice is overseas and meets the provisions of Chapter 55 Overseas Study, Pharmaceutical Allowance remains payable for up to 26 weeks;
- where the student or Australian Apprentice is overseas and does not meet the provisions of Chapter 55 Overseas Study, Pharmaceutical Allowance remains payable for up to 13 weeks;
- where the student or Australian Apprentice is overseas and does not meet the provisions of Chapter 55 Overseas Study, BUT the student or Australian Apprentice receives an extension to his/her limited portability period under the provisions set out in 9.2.2.1, Pharmaceutical Allowance remains payable for up to 26 weeks.
Different Pharmaceutical Allowance rates apply depending upon whether the student or Australian Apprentice is considered partnered or single for ABSTUDY purposes.
For details of Pharmaceutical Allowance rates, see “A Guide to Australian Government Payments 
”.
A partnered ABSTUDY student or Australian Apprentice can receive a rate of Pharmaceutical Allowance equivalent to the single rate where s/he is a member of an illness-separated couple. A person is a member of an illness separated couple if:
- they are unable to live together in a matrimonial home as a result of the illness or infirmity of either or both of them; and
- because of that inability to live together, their living expenses are, or are likely to be, greater than they would otherwise be; and
- that inability is likely to continue indefinitely.
A partnered ABSTUDY student or Australian Apprentice can receive a rate of Pharmaceutical Allowance equivalent to the single rate where s/he is a member of a respite care couple. A person is a member of a respite care couple if:
- one of the members of the couple has entered approved respite care; and
- the member who has entered the approved respite care has remained, or is likely to remain, in that care for at least 14 consecutive days.
For ABSTUDY purposes, a person is in approved respite care on a particular day if the person is eligible for a respite care supplement in respect of that day under section 44-12 of the Aged Care Act 1997.
A partnered ABSTUDY student or Australian Apprentice can receive a rate of Pharmaceutical Allowance equivalent to the single rate where s/he has a partner in gaol. A person is considered to have a partner in gaol if the person’s partner is:
- in gaol; or
- undergoing psychiatric confinement because the partner has been charged with committing an offence.
The rates of Pharmaceutical Allowance are indexed annually to changes in the Consumer Price Index (CPI). The effective date of indexation is 1 January each year.
Payments of Pharmaceutical Allowance are calculated on a daily rate and made fortnightly in arrears.
Where payments of Living Allowance are being made to a boarding school/hostel on a term-in-advance basis under the provisions set out in 71.5, Pharmaceutical Allowance must also be paid on a term-in-advance basis under the same provisions.
Rules for payment of Pharmaceutical Allowance to a student or Australian Apprentice who has a partner vary on the payment type being received by the partner, as outlined in the following table:
|
If the student or Australian Apprentice… |
Then Pharmaceutical Allowance… |
|
is a single person, |
is paid at the full fortnightly rate to the student or Australian Apprentice. |
|
has a partner who is entitled to PhA, |
is paid at half the fortnightly combined rate to both the student or Australian Apprentice and their partner. |
|
has a partner who is NOT entitled to PhA, |
is paid at half the fortnightly combined rate to the student or Australian Apprentice. |
|
has a partner who is entitled to PhA and the student or New Apprentice is:
- a member of an illness-separated couple; or
- a member of a respite care couple;
OR the partner is in gaol, |
is paid at the full fortnightly rate to both the student or Australian Apprentice and their partner. |
|
has a partner who is receiving one of the following DVA payments:
- service pension (age or invalidity); or
- partner service pension; or
- carer service pension.
|
is paid at half the fortnightly combined rate to the student or Australian Apprentice. |
The payee for Pharmaceutical Allowance is the same as the payee for Living Allowance as set out in 71.7.
For details of the tax status of Pharmaceutical Allowance, refer to Chapter 5 Taxation.
If, after applying the means tests, a student or Australian Apprentice is entitled to any amount of Pharmaceutical Allowance, s/he receives the full Pharmaceutical Allowance amount. The effect of means testing upon Pharmaceutical Allowance is set out in Chapter 57 Calculating ABSTUDY Rates.
Pharmaceutical Allowance is payable from the date the student becomes qualified for PhA, provided s/he is otherwise eligible for Living Allowance.
The entitlement period for Pharmaceutical Allowance is the same as the entitlement period for Living Allowance as set out in Chapter 73.
Where payments in excess of entitlement have occurred, refer to Chapter 3 Overpayment and Recovery of Allowances to determine what is a recoverable debt and from whom this amount should be recovered.