The Pharmaceutical Benefits Advisory Committee (PBAC) plays an important role in controlling the drugs that are available at subsidised prices under the Pharmaceutical Benefits Scheme (PBS). In brief, the Committee provides advice on whether a new drug is sufficiently cost-effective to merit its being added to the PBS. Listing is important to the drug manufacturers, because it has a beneficial effect on sales volume. They are therefore often prepared to offer lower prices than would otherwise be the case if availability were determined solely by the marketplace.