This federal government consultation paper seeks comment on the proposed community service obligation arrangements for the wholesale distribution of medicines subsidised under the Pharmaceutical Benefits Scheme. These arrangements form part of the Fourth Community Pharmacy Agreement between the Government and the Pharmacy Guild of Australia, which will come into effect from 1 July 2006. The agreement introduces a new community service obligation with funding of $150 million each year, in recognition of the additional costs some pharmaceutical wholesalers face in providing pharmacies with the full range of PBS medicines.