National Health Act 1953 - Amendment declaration under subsections 85(2) and 85(2AA) - Amendment determination under subsection 85(2A) - drugs and medicinal preparations (No. PB 128 of 2009)

Administered by Department of Health, Disability and Ageing

Legislation au F2010L00099 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 128 OF 2009

NATIONAL HEALTH ACT 1953

AMENDMENT DECLARATION UNDER SUBSECTIONS 85(2) AND 85(2AA)

    AMENDMENT DETERMINATION UNDER SUBSECTION 85(2A)

Purpose and operation

Part VII of the National Health Act 1953 (the Act) is the legislative basis of the Pharmaceutical Benefits Scheme (PBS) by which the Commonwealth provides reliable, timely, and affordable access to a wide range of medicines for all Australians.

Subsection 85(1) provides that benefits are to be provided by the Commonwealth in accordance with Part VII in respect of pharmaceutical benefits.

Drugs and medicinal preparations in relation to which Part VII applies are declared by the Minister by legislative instrument as such under subsection 85(2). These are listed drugs as defined in subsection 84(1). Part VII also applies to certain extemporaneously-prepared medicinal preparations as a result of declarations under paragraph 85(2)(b).

The Minister by legislative instrument can determine the form or forms of a listed drug by reference to strength, type of unit, size of unit or otherwise (subsection 85(3)); the manner of administration of the form of the listed drug so determined (subsection 85(5)); and a brand of the pharmaceutical item (defined in subsection 84(1)) that has the listed drug in that form with that manner of administration (subsection 85(6)). These determinations govern (except for certain extemporaneously-prepared pharmaceutical benefits) what constitutes the pharmaceutical benefit (defined in subsection 84(1)) under Part VII of the Act.  

Subsection 85(2AA) empowers the Minister, by legislative instrument, to revoke or vary a declaration under subsection 85(2) in relation to a drug or medicinal preparation. 

Where a revocation or variation would have the result that a drug or medicinal preparation would cease to be a listed drug, the Minister must under subsection 85(2AB) obtain the advice in writing of the Pharmaceutical Benefits Advisory Committee (PBAC).  Under subsection 85(2AC), this PBAC advice is to be tabled in Parliament with the relevant declaration under subsection 85(2AA).  Subsection 101(4) further provides that a drug or medicinal preparation cannot be declared under paragraph 85(2)(a) to be a drug or medicinal preparation in relation to which Part VII applies unless the PBAC has recommended to the Minister that it be so declared.

This legislative instrument in giving effect to recommendations of the PBAC, amends declarations under subsections 85(2) and 85(2AA) and the determination under subsection 85(2A) made by legislative instrument number PB 113 of 2008 which came into effect on 1 December 2008.  The amendments declare changes to the list of drugs and medicinal preparations available as pharmaceutical benefits and the circumstances in which the pharmaceutical benefits may be prescribed.  The amendments are set out in the items of Schedule 1 to the instrument.

A provision-by-provision description of the instrument is contained in the Attachment.

This instrument, expressed to commence on 1 February 2010, was made on
21 December 2009.

 

 

Consultations

The involvement of interested parties through the membership of the PBAC constitutes a formal and ongoing process of consultation. The PBAC is an independent expert body established by section 100A which makes recommendations to the Minister about which drugs and medicinal preparations should be available as pharmaceutical benefits.  PBAC members are appointed following nomination by prescribed organisations and associations from consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and specialists, with at least one member selected from each of those interests or professions.  Remaining members are persons whom the Minister is satisfied have qualifications and experience in a field relevant to the functions of the PBAC, and that would enable them to contribute meaningfully to the deliberations of the PBAC.  When recommending the listing of a medicine on the PBS, the PBAC takes into account the medical conditions for which the medicine has been approved for use in Australia, its clinical effectiveness, safety and cost-effectiveness compared with other treatments.


ATTACHMENT

Paragraph 1:  provides that this instrument commences on 1 February 2010.

Paragraph 2:  provides that Schedule 1 amends PB 113 of 2008.

Schedule 1: provides for the following amendments:

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

SCHEDULE 1

Deletion of Listed Drugs

Bifonazole

Silver Sulfadiazine with Chlorhexidine

 

Alteration of Circumstances

Glucose IndicatorBlood

[addition of the test strips, 50 (Bionime Rightest)]

Hydromorphone

[addition of the tablet (modified release) containing hydromorphone hydrochloride 4 mg]

Influenza Vaccine

[form description amended to reflect the composition recommended for the 2010 season]

 

SCHEDULE 2

Alteration of Circumstances

Hydromorphone

[addition of the tablet (modified release) containing hydromorphone hydrochloride 4 mg]

 

SCHEDULE 3

Deletion of Allowable Compound

Silver Sulfadiazine with Chlorhexidine

 

 

Overview

The National Health Act 1953, amended in 2009 by the legislative instrument F2010L00099, serves to regulate the Pharmaceutical Benefits Scheme (PBS) by which the Commonwealth ensures accessible, reliable, and affordable medicines for all Australians. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a critical role in this process by recommending to the Minister which drugs and medicinal preparations should be listed as pharmaceutical benefits. This legislative instrument gives effect to these recommendations by amending declarations and determinations regarding the list of drugs available under the PBS and the conditions under which these benefits may be prescribed. The instrument was made on 21 December 2009 and commenced on 1 February 2010, amending previous legislative instruments such as PB 113 of 2008. The amendments include the deletion of certain drugs, alterations in the circumstances of drug prescription, and adjustments to the allowable compounds, all aimed at refining the scope and application of pharmaceutical benefits available under the PBS.

Scope and Application

The National Health Act 1953 Amendment Instrument, numbered PB 128 of 2009, amends the Pharmaceutical Benefits Scheme (PBS) by modifying the list of drugs and medicinal preparations eligible for pharmaceutical benefits, as well as the conditions under which these benefits can be prescribed. The amendments, which came into effect on 1 February 2010, are made pursuant to subsections 85(2) and 85(2AA) of the Act, and they follow recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC). This committee, consisting of experts from various relevant fields, advises the Minister on which drugs should be listed on the PBS. The amendments include the deletion of certain drugs, such as bifonazole and silver sulfadiazine with chlorhexidine, and the alteration of prescription conditions for others, like glucose indicator—blood and hydromorphone. The Act applies to all Australians who access the PBS, thereby influencing the availability and affordability of medications within the Commonwealth. The instrument also allows for the revocation or variation of previous declarations, ensuring the PBS remains responsive to changes in medical and economic conditions.

Key Provisions

The National Health Act 1953 (the Act) and its amendments, as evidenced in the Explanatory Statement, primarily govern the Pharmaceutical Benefits Scheme (PBS), which ensures Australians have access to affordable and timely medicines. The Act, through sections such as 85(1), 85(2), and 85(2AA), establishes the framework for the Commonwealth to provide pharmaceutical benefits. Specifically, subsection 85(1) mandates that the Commonwealth furnish benefits in accordance with Part VII of the Act. Subsection 85(2) allows the Minister to declare drugs and medicinal preparations that are eligible for the PBS by legislative instrument, while subsection 85(2AA) empowers the Minister to revoke or vary these declarations. The form, manner of administration, and brand of the pharmaceutical items are determined under subsections 85(3), 85(5), and 85(6) respectively. The obligations imposed by the Act include the requirement for the Minister to consult with the Pharmaceutical Benefits Advisory Committee (PBAC) before making significant changes to the PBS list. The PBAC, as outlined in section 100A, is an expert body comprising representatives from various sectors including consumers, health economists, and medical professionals. This committee recommends which drugs should be listed on the PBS based on criteria such as clinical effectiveness, safety, and cost-effectiveness. The Minister must obtain written advice from the PBAC before revoking or varying a drug listing, as stipulated in subsection 85(2AB), and table this advice in Parliament as per subsection 85(2AC). Additionally, a drug or medicinal preparation cannot be declared under paragraph 85(2)(a) unless the PBAC has recommended it, as per subsection 101(4). Failure to comply with the requirements of the Act can result in civil or criminal consequences. For instance, if the Minister does not follow the necessary consultation process with the PBAC, or if the PBAC's recommendations are ignored, these actions could potentially lead to legal challenges or penalties under the relevant provisions of the Act. However, the specific penalties for such breaches are not detailed in the provided text, but they may include fines or other sanctions as prescribed by law. The amendments to the PBS list and the circumstances under which pharmaceutical benefits may be prescribed are detailed in Schedule 1 to the instrument, reflecting the changes made to better align the PBS with current medical needs and economic considerations.

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Area of Law
Health Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Regulatory Standards
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Pharmaceutical Benefits Scheme

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