Pharmaceutical Allowance (PhA) 108-08060000

PhA is a non-taxable benefit. It is payable each fortnight to single eligible customers or to each entitled member of a couple, based on their individual eligibility.

PhA is payable when the customer is in receipt of a qualifying payment and meet certain conditions related to that payment. PhA is not payable if the customer is:

• absent overseas permanently
• paid the proportional rate under an International Agreement
• overseas for longer than the maximum portability period
• being paid Veterans Supplement at the PhA rate (VSP) or high rate (VSH) by the Department of Veterans' Affairs (DVA)

Customers in receipt of one of the following payments, subject to any stated conditions, are eligible for PhA:

• ABSTUDY customers in receipt of Living Allowance who are:
• temporarily incapacitated and their absence from study or their apprenticeship has been approved, or
• 55 years of age or more
• Austudy customers aged 55 years or more (but under Age Pension age), after receiving income support for 9 months
• Disability Support Pension (DSP) customers who are aged under 21 and without children
• Farm Household Allowance (FHA)
  PhA is payable to FHA recipients at standard rates if:
• they are a single principal carer of a dependent child, or
• they have been granted a temporary incapacity exemption (supported by a medical certificate) from the activity test
• JobSeeker Payment (JSP) who:
• are temporarily incapacitated, or
• have a partial capacity to work, or
• are a single principal carer, or
• are aged 55 years or more and, in receipt of an income support for at least 9 months
• Parenting Payment Partnered (PPP) who are:
• aged 55 years or more (but under Age Pension age) and are in receipt of income support for at least 9 months or who cannot meet their mutual obligation requirements due to a temporary incapacity, or
• from 1 January 2008, if they were granted PPP on or after 1 July 2006 and have been assessed as having a partial capacity to work due to a disability providing they are under Age Pension age
• Parenting Payment Single (PPS) customers who are under Age Pension age
• Special Benefit customers under Age Pension age who are:
• temporarily incapacitated, or
• over 55 years of age and in receipt of income support for at least 9 months

Note: SpB recipients are not required to be Australian residents in order to be paid PhA.

• Youth Allowance (YA) customers (job seeker or full time student, or new apprentice) who are:
• temporarily incapacitated, or
• in receipt of YA as a job seeker, and
• have a partial capacity to work, or
• a single principal carer

Veteran Supplement is paid at one of the following 3 rates:

• at the TAL rate (VST)
• at the PhA rate (VSP)
• at the high rate (VSH) which includes both TAL and PhA

Qualifying customers who are eligible for Working Credit will not be paid PhA during periods where the customer is in an employment income nil rate period.

Advance payments of PhA are available to DSP (under 21 with no dependent children) and PPS customers. The advance payment equals 7 times the fortnightly rate or the number of paydays remaining in the entitlement year if this is less than 7.

Each member of a couple is assessed independently. One or both members of a couple may be entitled to the advance at the same time.

Pharmaceutical Allowance (PhA) is indexed each January in line with the Consumer Price Index (CPI) figures and is paid at a single or partnered rate.

Changes were made from 20 September 2009 to replace PhA with Pension Supplement:

• The PhA has been replaced by the Pension Supplement for eligible customers
• The Department of Veterans' Affairs (DVA) ceased paying PhA and Telephone Allowance (TAL) and commenced paying Veteran Supplement payments