This audit would examine the effectiveness of the administration of the Pharmaceutical Benefits Scheme (PBS).

The PBS provides Australians requiring access to certain prescribed medicines with subsidies on the total price. The PBS lists 906 medications (5380 brands). In 2020–21 the PBS cost the Australian Government $13.8 billion (excluding recovery revenue).

The Department of Health and Aged Care manages the listing of medicines and compliance arrangements for the PBS and Services Australia processes claims against the PBS. The Pharmaceutical Benefits Advisory Committee, an independent statutory body, makes recommendations about and advises the Minister on which drugs and medicinal preparations should be made available through the PBS.