PSA enters into Heads of Agreement for the First Pharmacy Programs Agreement to progress partnership and certainty
22 December 2025
The Pharmaceutical Society of Australia (PSA) has entered into a Heads of Agreement for a Pharmacy Programs with the Australian Government. This Heads of Agreement represents a key milestone in the progression to signing the First Pharmacy Programs Agreement (1PPA).
This Heads of Agreement confirms the Government’s intention to provide ongoing funding, outside the Eighth Community Pharmacy Agreement (8CPA), for programs central to the safe and effective use of medicines across the health system. These programs include six medication management programs and all legacy rural workforce and Aboriginal and Torres Strait Islander programs previously included in the 8CPA.
PSA and the Department of Health have agreed to use their best endeavours to agree on the final 1PPA as soon as reasonably practicable, after the relevant budgetary processes have been concluded.
The Heads of Agreement contains a shared intention between the Australian Government and PSA to advance the central pillars of the National Medicine Policy 2022 and 10th National Health Priority Area of Quality Use of Medicines and Medicine Safety. It recognises the central role of pharmacists in optimising quality use of medicines and medicine safety and the critical role of the pharmacy workforce.
The Heads of Agreement recognises the desirability of ensuring fair and equitable remuneration for pharmacists; addressing barriers to effective services delivery; addressing rural and regional disadvantages; and working towards culturally safe and appropriate care for patients.
The Heads of Agreement also recognises the desirability of supporting ongoing review and, when appropriate, reform of pharmacy program design and service delivery, within relevant budgetary and policy constraints of the Commonwealth and the Australian Government.
Importantly, the Heads of Agreement recognises the desirability of supporting the Australian Government’s Closing the Gap initiative and its aims to reduce health and life expectancy inequalities between Aboriginal and Torres Strait Islander peoples and non-Indigenous Australians, with a strong focus on improving access to culturally safe and equitable health services.
PSA National President, Associate Professor Fei Sim FPS, said the Heads of Agreement marks a significant milestone in establishing certainty for the profession and ensuring pharmacists can continue their vital work across communities.
“Today’s announcement demonstrates a clear commitment from the government to work in partnership with PSA to secure the future of essential pharmacist programs,” A/Prof Sim said.
“These programs are essential to quality use of medicines and patient safety across the health system – from medicine reviews to aged care and to rural and remote communities. The Heads of Agreement gives PSA a firm foundation to negotiate the details required in the coming months, ensuring Australians can continue to benefit from essential pharmacist services.”
PSA National President-Elect, Professor Mark Naunton MPS, emphasised the 1PPA will go beyond providing funding certainty.
“The Heads of Agreement signals a new phase of collaboration. It demonstrates the Government’s confidence in the programs we as pharmacists deliver,” said Prof Naunton.
Deborah Hawthorne FPS, Chair of PSA’s Consultant Pharmacist Community of Specialty Interest, reflected on the importance of the reforms PSA is seeking.
“The 1PPA is a critical agreement. The pharmacist programs it contains support medicine safety and quality of life for some of Australia’s most vulnerable patients,” Ms Hawthorne said.
“It is essential they are modernised to meet the community’s evolving health needs and remunerated fairly in recognition of pharmacists’ expertise, particularly as payments for many services haven’t had an adjustment for CPI for over six years.”
PSA Consultant Pharmacist Advisor, Debbie Rigby FPS, echoed these sentiments.
“PSA is seeking a number of common-sense changes to pharmacy programs, including those delivered by consultant pharmacists, to improve patient access, fair remuneration and quality. These are priorities as finalisation of the agreement continues”, Ms Rigby said.
“PSA is the home of all pharmacists. We are committed to achieving a good outcome for the profession to enable pharmacists to sustainably provide their medicines expertise and care to Australians.”
PSA Negotiations Lead Associate, Professor Shane Jackson FPS, welcomed the commitment of Government to reach an agreement once the Commonwealth budgetary processes are complete.
“PSA intends, through the upcoming 2026-27 budget process, to pursue a pathway forward to ensure these programs can deliver fair and equitable remuneration for pharmacists and reduce barriers to service delivery.
“The PSA has and will continue to work constructively with the Department. We look forward further engagement with our members and the entire profession as we look to finalising the full agreement and delivering strong outcomes for the profession and for Australians.” A/Prof Jackson concluded.
Media contact: Leah Jacobsen
M: 0480 099 798 E: leah.jacobsen@psa.org.au
The Pharmaceutical Society of Australia is the only national peak body that represents all of Australia’s pharmacists across all practice settings. We want every Australian to have access to the best healthcare, and this must include optimising access to pharmacists’ knowledge and medicines expertise at the forefront of our healthcare system.
