EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health and Ageing
A New Tax System (Goods and Services Tax) Act 1999
The purpose of this determination is to grant GST-free status to nicotine replacement therapy (NRT) (nicotine sublingual tablets).
Paragraph 177-10(4)(b) of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) provides that the Health Minister may make a determination in respect to subsection 38-47(1) of the GST Act. This subsection of the GST Act provides that a supply is GST-free if it is a supply of goods of a kind that the Health Minister, by determination in writing, declares to be goods the supply of which is GST-free.
In February 2005, the National Drugs and Poisons Schedule Committee (NDPSC) made a decision, confirmed at their June 2005 meeting, to exempt nicotine sublingual tablets from the scheduling requirements of Schedule 2 of the Standard for the Uniform Scheduling of Drugs and Poisons (SUSDP). As a result of this decision, nicotine sublingual tablets would be permitted to be sold in non-pharmacy settings (such as supermarkets) from 1 January 2006. The consequence of this decision was that this product would lose its GST-free status if a determination were not made.
Consultation was not conducted, in accordance with Section 18 of the Legislative Instruments Act 2003, on the grounds that the instrument is minor and does not substantially change the law. The Office of Regulation Review (ORR) advised the determination will retain the status quo and as such will not impact on business or restrict competition.
In the interests of better health outcomes, I am now tabling the GST-free Supply (Health Goods) Determination 2005 effective from 31 December 2005 in order to maintain the GST-free status of nicotine sublingual tablets when the NDPSC exemption from the SUSDP comes into effect on 1 January 2006.
All the necessary legal requirements have been met, as required before exercising the power to make this determination. The ORR has advised that a Regulatory Impact Statement (RIS) is not required.