The Abbott Government has struck a $19-billion deal for pharmacies to dispense taxpayer-subsidised medicines for the next five years.

Government sources have confirmed a letter of intent has been signed with the Pharmacy Guild of Australia that sets out the major elements of the sixth Community Pharmacy Agreement.

The agreement pays about 5,000 pharmacies for dispensing the price-regulated Pharmaceutical Benefits Scheme (PBS) medicines and services.

It was understood the guild had been pushing for a figure closer to $21 billion.

For more details, go to: http://www.abc.net.au/news/2015-05-17/pharmacy-guild-deal-reached-with-government/6476166