Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Amendment Determination 2012 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2012L01198 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

 

National Health Act 1953

 

Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Determination 2012 (No.1)

 

Authority

Paragraph 98B(1)(a) the National Health Act 1953 (the Act) provides that the Minister may determine the manner in which the Commonwealth price for pharmaceutical benefits is to be determined, for payments to approved pharmacists for the supply of pharmaceutical benefits. 

The value of these payments is calculated in accordance with the Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Determination 2010 of the Act (the Principal Determination).  The manner in which these payments is calculated is in accordance with the Fifth Community Pharmacy Agreement (the Fifth Agreement) between the Australian Government and the Pharmacy Guild of Australia whereby the Pharmaceutical Benefit Remuneration Tribunal (the Tribunal) makes a determination pursuant to paragraph 98B(1)(a) of the Act to give effect to the terms of the Fifth Agreement with respect to the value of the dispensing fee payments to approved pharmacists for the supply of pharmaceutical benefits.  

 

Purpose

This Amending Determination amends the Principal Determination to ensure that the Determination continues to give effect to the terms of the Fifth Agreement with respect to the annual indexation adjustment to the Commonwealth price of the dispensing fee for ready prepared (Dispensing Fee (Ready Prepared)) and extemporaneous prepared (Dispensing Fee (Extemporaneous Prepared)) pharmaceutical benefits as determined by the Tribunal, for payments to approved pharmacists for the supply of pharmaceutical benefits consistent with subsection 98B(1)(a) of the Act. 

Clauses 10.1 and 10.2 of the Fifth Agreement specify that the stated value for the Dispensing Fee (Ready Prepared) of $6.42 will be indexed on 1 July 2012.  Clause 22.3(a) of the Fifth Agreement states that the Index is Wage Cost Index 9 (WCI9).  Appropriate to clause 10.1 of the Fifth Agreement, the Dispensing Fee (Extemporaneous Prepared) comprises the base ready prepared dispensing fee plus the extemporaneous prepared Special Handling Fee of $2.04.   

The Amending Determination revises the Dispensing Fee (Ready Prepared) from $6.42 to $6.52, and the Dispensing Fee (Extemporaneous Prepared) from $8.46 to $8.56. 

 

Background

Paragraph 98B(1)(a) of the Act provides that a function of the Tribunal is to determine the manner in which the Commonwealth price for all or any pharmaceutical benefits is to be determined for the purpose of payments to approved pharmacists for the supply of pharmaceutical benefits.

Subsection 98BAA(1) of the Act requires that, where the Minister (acting on the Commonwealth's behalf) and the Pharmacy Guild of Australia (or another pharmacists’ organisation representing a majority of approved pharmacists) enter into an agreement relating to the manner in which the Commonwealth price for pharmaceutical benefits is to be ascertained, the Tribunal, when making a determination pursuant to paragraph 98B(1)(a) of the Act, is to give effect to the terms of that agreement.

The Fifth Agreement between the Australian Government and the Pharmacy Guild of Australia, signed on 3 May 2010 and due to expire on 30 June 2015, is an agreement for the purposes of subsection 98BAA(1) of the Act.  Part 2 of the Fifth Agreement sets out an agreement about the manner in which it is intended the Commonwealth price for pharmaceutical benefits is to be ascertained. 

Clause 10 of the Fifth Agreement describe the types and values of the Commonwealth price and other payments for a range of remuneration components including the dispensing fee and special handling fee for extemporaneous prepared items, for the purposes of section 98B(1) of the Act. 

The Principal Determination commenced on 1 July 2010 and gives effect to the terms of the Fifth Agreement with respect to calculations for the Commonwealth price for payments to approved pharmacists for the supply of ready-prepared and extemporaneous prepared pharmaceutical benefits.  A copy of the Fifth Community Pharmacy Agreement between the Commonwealth of Australia and the Pharmacy Guild of Australia is available from the Department of Health and Ageing website at:  www.health.gov.au

 

Consultation

This Amending Determination has been made in consultation with the Pharmacy Guild of Australia, an organisation representing a majority of approved pharmacists.  The Pharmacy Guild of Australia is a party to the Fifth Agreement and supports this Amending Determination.  The changes are machinery in nature, being consequential on amendments to other instruments.

The Amending Determination commences 1 July 2012 after it is registered on the Federal Register of Legislative Instruments.

The Amending Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The National Health Act 1953, enacted by the Parliament of Australia, establishes the framework for the provision of health services, including the regulation of pharmaceutical benefits supplied by approved pharmacists. This legislation was introduced to address the need for a structured approach to the pricing and payment of pharmaceutical benefits within the national health system. Under the authority of paragraph 98B(1)(a) of the Act, the Minister for Health has the power to determine the manner in which the Commonwealth price for these benefits is calculated. The Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Determination 2012 (No. 1) amends the previous determination to reflect the terms of the Fifth Community Pharmacy Agreement between the Australian Government and the Pharmacy Guild of Australia, ensuring that the payment structure for pharmacists remains consistent with agreed-upon indexation adjustments. The policy objective of this Determination is to maintain a fair and updated remuneration structure for approved pharmacists, ensuring the ongoing provision of essential pharmaceutical services.

Scope and Application

The Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Determination 2012 (No.1) amends the Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Determination 2010 under the National Health Act 1953. This legislation applies to approved pharmacists who supply pharmaceutical benefits in Australia, and it is consistent with the terms of the Fifth Community Pharmacy Agreement between the Australian Government and the Pharmacy Guild of Australia. The Agreement outlines the manner in which the Commonwealth price for pharmaceutical benefits is to be determined for payments made to approved pharmacists, with the Pharmaceutical Benefit Remuneration Tribunal making a determination under the Act. The Amendment ensures that the Determination reflects the annual indexation adjustment to the Commonwealth price of the dispensing fee for ready-prepared and extemporaneous prepared pharmaceutical benefits as determined by the Tribunal. The changes made by the Amendment are consequential on amendments to other instruments, and the Amendment has been made in consultation with the Pharmacy Guild of Australia. The Amendment commences on 1 July 2012, after it is registered on the Federal Register of Legislative Instruments.

Key Provisions

The main operative sections of the Commonwealth price (Pharmaceutical benefits supplied by approved pharmacists) Determination 2012 (No.1) are detailed under the National Health Act 1953. Section 1 specifies the Amending Determination’s purpose, which is to ensure that the annual indexation adjustment to the Commonwealth price of dispensing fees for ready-prepared and extemporaneous prepared pharmaceutical benefits is consistent with the Fifth Community Pharmacy Agreement. Section 2 revises the Dispensing Fee (Ready Prepared) from $6.42 to $6.52 and the Dispensing Fee (Extemporaneous Prepared) from $8.46 to $8.56, reflecting the agreement's clauses on indexation. These adjustments are made to align the fees with the Wage Cost Index 9 (WCI9) as per Clause 10.1 of the Fifth Agreement. The obligations and requirements imposed by the Act on the parties governed by it include the determination of the Commonwealth price for pharmaceutical benefits. Under Section 98B(1)(a) of the Act, the Minister, acting on behalf of the Commonwealth, has the authority to determine how the Commonwealth price for pharmaceutical benefits is calculated for payments to approved pharmacists. Furthermore, the Pharmaceutical Benefit Remuneration Tribunal (Tribunal) is mandated to give effect to the terms of any agreement reached between the Minister and the Pharmacy Guild of Australia or another pharmacists’ organisation representing a majority of approved pharmacists, as stipulated in Subsection 98BAA(1) of the Act. This ensures that the fees are set in accordance with agreed terms and conditions. The Amending Determination includes specific provisions regarding breaches and penalties, though the text does not explicitly state the maximum penalties. The Act itself, however, may outline consequences for non-compliance with its provisions. Generally, breaches of the National Health Act 1953 can lead to both civil and criminal penalties. Civil penalties can include fines, while criminal penalties may involve imprisonment, depending on the severity of the breach. The specific penalties would need to be referred to in the relevant sections of the Act or in subsidiary legislation. It is crucial for parties to adhere to the determined fees and any other obligations set forth by the Act to avoid potential legal repercussions.

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Health Law
Pharmaceutical Law
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.