Pharmacy finance has rarely been more front of mind. The past few weeks have generated plenty of discussion, particularly around the confirmed removal of credit and debit card surcharges, interest rate expectations and the ongoing cost of doing business. For pharmacy and healthcare owners, these aren’t isolated issues. Rising wage costs, tightening lender appetite and ongoing PBS reimbursement pressures are already squeezing margins. Add cashflow, financing decisions and cyber-risk obligations into the mix, and it’s clear these market shifts have a direct line to long-term profitability.
Card surcharges: the cost won’t disappear, it will shift
The confirmed removal of credit and debit card surcharges from October 2026 continues to be a focus for both businesses and the banking sector. While the major banks are yet to announce exactly how merchant pricing will change, it’s clear the cost of accepting card payments won’t disappear. Those costs will simply be recovered differently, whether through revised merchant service fees, new pricing models or changes to banking packages.
For pharmacies and healthcare providers, where card transactions make up a large share of daily revenue, even small changes to merchant pricing can materially affect your margins. Our recommendation is to understand your current merchant costs now, rather than waiting for the changes to take effect. As banks begin announcing their revised pricing, businesses that know what they’re paying today will be in a much stronger position to assess their options.
Interest rates: focus on what you can control
On 11 August, the RBA held the cash rate at 4.35%, in line with much of the recent commentary around the direction of interest rates. Rather than trying to predict the RBA’s next move, we’re encouraging clients to focus on the things they can control. Reviewing lending structures, refinancing where appropriate and ensuring facilities continue to support both cashflow and future growth are worthwhile exercises, regardless of what the RBA decides at any single meeting.
Lending: banks are taking a broader view
We’re also seeing banks take a more holistic view of borrower exposure, particularly where owners have both commercial and personal lending. A review now can prevent constraints on future borrowing capacity and ensure your finance remains competitive and aligned with your current circumstances.
Sector activity remains solid
We’re continuing to see solid activity across the pharmacy and healthcare sectors, particularly for practice acquisitions, healthcare property, fit outs and equipment finance. Lenders remain supportive of well-structured transactions, although some have tightened goodwill lending multiples and security requirements. Competition between banks is still providing good opportunities for businesses looking to refinance, expand or invest, provided applications are prepared with the right structure and supporting information.
Insurance: is your cover still fit for purpose?
Another conversation we’re having more frequently is around insurance. Many businesses have grown or changed significantly over the past few years, but their insurance arrangements haven’t necessarily kept pace. Rising replacement costs, increasing cyber risks, higher business interruption exposures and changing business operations all make it worthwhile reviewing existing cover to ensure it’s still fit for purpose.
At Allfin, we’re helping clients review their business insurance needs to ensure they’re appropriately protected and not paying for cover that they no longer need, or doesn’t reflect their current circumstances.
Looking ahead…
Periods like this are a timely reminder that good financial outcomes rarely come from reacting to headlines. They come from regular reviews, informed decisions and having the right advice across lending, payments and insurance.
At Allfin, we’re working with pharmacy and healthcare owners every day to review lending structures, refinance existing facilities, assess insurance needs and ensure their broader financial strategy continues to support their business goals. If it’s been a while since you’ve reviewed your commercial lending, home loan or insurance, now is a good time to have a conversation.
~ Mark Churchill, Managing Director.
