PBS Guide · 6 min read

PBS and Close the Gap (CTG)

How the Closing the Gap PBS co-payment subsidy works — waiving medicine co-payments for eligible Aboriginal and Torres Strait Islander patients.

CTGIndigenous healthCo-payment waiverChronic disease

What is the Close the Gap measure?

The Close the Gap (CTG) PBS co-payment measure is part of the Australian Government's broader Closing the Gap strategy to improve health outcomes for Aboriginal and Torres Strait Islander people. Under this measure, eligible Indigenous patients pay $0 co-payment for all PBS medicines — regardless of whether they hold a concession card.

The measure aims to address the significant health disparities experienced by Aboriginal and Torres Strait Islander Australians, who have substantially higher rates of chronic disease (including diabetes, cardiovascular disease, renal disease, and respiratory conditions) compared to the general population, but historically lower medicine adherence partly due to cost barriers.

$0
PBS co-payment for registered CTG patients
All PBS
All listed PBS medicines are covered (where clinically indicated)

How CTG registration works

1

Prescriber identifies an eligible patient

The prescriber (GP, specialist, nurse practitioner, or Aboriginal Health Practitioner in eligible settings) identifies a patient who is Aboriginal and/or Torres Strait Islander, has or is at risk of a chronic condition, and may benefit from the co-payment waiver.

2

Complete and submit the registration

Complete PBS063 form ↗ (paper) or register electronically through compliant clinical software. The form records: patient consent, Medicare number, confirmation of Aboriginal and/or Torres Strait Islander status, and the presence/risk of chronic disease. Registration is sent to Services Australia.

3

Patient presents at a CTG-participating pharmacy

Once registered, the patient's Medicare record is flagged. When they present at a CTG-participating pharmacy ↗, the pharmacist identifies the CTG flag in the Medicare system and applies the $0 co-payment automatically. The patient does not need to carry a separate CTG card.

4

Pharmacy claims the benefit

The pharmacy claims the full PBS benefit (including the co-payment component that the patient did not pay) from Services Australia. The government reimburses the full PBS price minus nothing — there is no patient contribution to offset. The dispensing fee is also reimbursed as normal.

Clinical context: why this matters

Aboriginal and Torres Strait Islander Australians experience significantly higher rates of chronic disease ↗ including:

Type 2 diabetes

3× higher prevalence than non-Indigenous Australians. Oral hypoglycaemics, insulin, and diabetes monitoring supplies all covered under PBS + CTG.

Cardiovascular disease

Statins, antihypertensives, anticoagulants, antiplatelet therapy — key PBS medicines for secondary prevention covered under CTG.

Chronic kidney disease

Linked to high diabetes and CVD rates. ACE inhibitors, ARBs, and newer agents (SGLT2 inhibitors) are increasingly listed on PBS. See renal dosing adjustments.

Respiratory disease

Asthma and COPD rates are substantially higher. Inhaled corticosteroids, LABA/LAMA combinations, and short-acting bronchodilators are unrestricted PBS items covered under CTG.

Frequently asked questions

What is the Close the Gap PBS co-payment measure?
The CTG PBS co-payment measure ↗ waives PBS co-payments for eligible Aboriginal and Torres Strait Islander patients — both general ($7.70 normally) and concessional ($2.80 normally) patients pay $0. Registered via a Medicare-enrolled prescriber. See co-payment rates for comparison with non-CTG patients.
Who is eligible for the Close the Gap PBS co-payment measure?
Eligibility requires: (1) Aboriginal and/or Torres Strait Islander identity; (2) Medicare enrolment ↗; (3) registration for CTG by an eligible prescriber. The patient should have or be at risk of a chronic disease and be willing to participate in a chronic disease management plan (e.g., GP Management Plan under Medicare item 721). No income test. See CTG factsheet ↗.
How does a prescriber register a patient for the Close the Gap measure?
Register the patient using PBS063 form ↗ or via electronic prescribing software. The prescriber certifies: Indigenous identity, chronic disease risk, and disease management agreement. Registration is stored against the patient's Medicare record. Once registered, any approved CTG-participating pharmacy ↗ dispenses at $0 co-payment. Registration can be done by GPs, NPs, and eligible specialists.
Do Close the Gap scripts count toward the PBS Safety Net?
CTG scripts (co-payment $0) do not contribute to the PBS Safety Net — there is no co-payment to record. If the same patient fills a non-CTG PBS script at their normal concession or general rate, that script does accumulate toward Safety Net. Most pharmacies track CTG registration electronically — confirm with your pharmacist each time.