The CSO Funding Pool commenced on 1 July 2006. It was established under the Fourth Community Pharmacy Agreement (4CPA) and continued under the 5CPA, 6CPA and 7CPA. From January 2025, the CSO Funding Pool operates under the First Pharmacy Wholesaler Agreement (1PWA) . The 1PWA is a five year agreement between the Australian Government and the National Pharmaceutical Services Association (NPSA), which ensures:
- Australians can continue to rely on the certainty of timely and reliable medicines supply from their local pharmacy
- The rising costs of distributing medicines across Australia will not be passed on to consumers.
The CSO Funding Pool provides funding of over $2 billion over five years, to eligible CSO Distributors (wholesalers) that meet certain Service Standards for the delivery of Pharmaceutical Benefits Scheme (PBS) medicines to community pharmacies.
Its purpose is to ensure that all Australians have timely access to the PBS medicines they need, regardless of where they live. This is achieved through ensuring that all of Australia’s 6,000 community pharmacies can order any brand of PBS medicine, and receive delivery within 24 to 72 hours. These arrangements fulfil more than 200 million subsidised pharmaceutical prescriptions each year.
The CSO Funding Pool makes it commercially viable for pharmaceutical wholesalers to supply the full range of PBS medicines to pharmacies across Australia, regardless of pharmacy location and the relative cost of supply.
AHA has administered the CSO Funding Pool since 2007. AHA’s role as the CSO Administrator includes:
- Undertaking payment calculations
- Monitoring the performance of eligible CSO Distributors against the CSO Service Standards and Compliance Requirements
- Administering a complaints process and sanctions framework.
CSO Service Standards
The CSO Service Standards define the minimum services, standards and operating arrangements that CSO Distributors must meet. CSO Distributors are required to:
- Supply to any Community Pharmacy within their national or state jurisdiction, including Rural and Remote pharmacies
- Supply any brand of any PBS Medicine and NDSS Product (as defined) on request, including Low Volume PBS Medicines
- Supply PBS Medicines promptly, within 24 to 72 hours
- Maintain specified stocks of PBS Medicines and NDSS Products
- Supply PBS Medicines at or below the Approved Price to Pharmacist, and Supply NDSS Products at no cost to Access Points
- Make available a daily delivery service to Community Pharmacies as part of their standard service delivery infrastructure.
Further Information
Further information about the operation of the CSO Funding Pool and the obligations of CSO Distributors is available from:
Complaints
Community Pharmacies are able to lodge a complaint about the performance of any CSO Distributor (wholesaler) against the CSO Service Standards and Compliance Requirements. You can download our complaints policy and/or complaints form to complete.
Complaints can be lodged in writing, either:
electronically to: [email protected]
or via post to:
Complaints Officer
CSO Funding Pool Administration Agency
Locked Bag 32005,
Collins Street East, VIC 8003
Alternatively, please contact us on 1300 309 213.
Further details about lodging a complaint are available from the Department of Health, Disability and Ageing .