National Health Act 1953 - Amendment determination under paragraph 98C(1)(b) - conditions (No. PB 53 of 2009)

Administered by Department of Health, Disability and Ageing

Legislation au F2009L02293 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

INSTRUMENT NUMBER PB 53 OF 2009

NATIONAL HEALTH ACT 1953

AMENDMENT DETERMINATION UNDER PARAGRAPH 98C(1)(b)

 

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 to which Part VII applies are (with the exception of some medicinal preparations with additives) declared by the Minister by legislative instrument to be so under subsection 85(2). These are listed drugs as defined in subsection 84(1). 

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 what constitutes the pharmaceutical benefit (defined in subsection 84(1)) under Part VII of the Act.  Under section 84AF, the Minister may determine a responsible person for a brand of a pharmaceutical item.

Paragraph 98C(1)(b) of the Act provides that the Minister may, from time to time, determine the conditions subject to which payments will be made by the Commonwealth in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.

The determination under paragraph 98C(1)(b) of the Act sets out the conditions under which payments will be made in respect of the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners.

This legislative instrument amends the determination under section 98C(1)(b) made by legislative instrument number PB 119 of 2008 which came into effect on 1 December 2008.  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 July 2009, was made on 4 June 2009.

 

Consultations

The Department consulted with the Pharmaceutical Benefits Advisory Committee (PBAC) during the regular process of its meetings to consider applications in order to recommend to the Minister which medicines should be subsidised through the Pharmaceutical Benefits Scheme.  The Committee is independent of Government and includes members from the following interests or professions: consumers, health economists, practising community pharmacists, general practitioners, clinical pharmacologists and medical specialists.  The Committee has received submissions and representations from interested pharmaceutical companies and has recommended the changes to the Minister who has determined the changes to the conditions under paragraph 98C(1)(b) which appear in this Determination. 

 


ATTACHMENT

Paragraph 1: provides that this instrument commences on 1 July 2009.

Paragraph 2: provides that Schedule 1 amends PB 119 of 2008.

Schedule 1: provides for the following amendments:

 

 

SCHEDULE 4

 

Listed Drugs Added

Metformin 

Mupirocin

 

Forms Deleted

Oestradiol and Oestradiol with Norethisterone

Pack containing 12 tablets oestradiol 2 mg, 10 tablets oestradiol 2 mg with norethisterone acetate 1 mg and 6 tablets oestradiol 1 mg

Oestradiol with Norethisterone

Tablets containing 1 mg oestradiol (as hemihydrate) with 500 micrograms norethisterone acetate, 28

Oestradiol with Norethisterone

Tablets containing 2 mg oestradiol (as hemihydrate) with 1 mg norethisterone acetate, 28

 

 

Overview

The National Health Act 1953, as amended by the legislative instrument F2009L02293, aims to regulate the Pharmaceutical Benefits Scheme (PBS) and ensure affordable access to medicines for Australians. Enacted by the Australian Parliament, the Act facilitates the Commonwealth's provision of reliable and timely pharmaceutical benefits through Part VII. The 2009 amendment determination, effective from 1 July 2009, updates the conditions under which payments for pharmaceutical benefits are made by approved pharmacists and approved medical practitioners. This amendment follows consultations with the Pharmaceutical Benefits Advisory Committee (PBAC), which includes representatives from various healthcare interests and professions, to recommend changes to the Minister for consideration. The amendments include the addition of certain listed drugs to the PBS and the removal of specific forms of oestradiol and oestradiol with norethisterone from the list of covered pharmaceutical items.

Scope and Application

The National Health Act 1953 Amendment Determination under paragraph 98C(1)(b) governs the conditions under which payments will be made by the Commonwealth for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners. This instrument, which commenced on 1 July 2009, amends the previous determination made by legislative instrument number PB 119 of 2008. The amendments, outlined in Schedule 1, include the addition of Metformin and Mupirocin to the list of drugs eligible for benefits, as well as the deletion of certain forms of Oestradiol and Oestradiol with Norethisterone from the list of eligible drugs. The Act applies to the Pharmaceutical Benefits Scheme (PBS), which is designed to provide reliable, timely, and affordable access to a wide range of medicines for all Australians. The instrument extends to the entire Commonwealth of Australia, ensuring uniform application of the provisions across the nation. The changes are made following consultations with the Pharmaceutical Benefits Advisory Committee, which includes representatives from various health-related fields, and take into account submissions from interested pharmaceutical companies.

Key Provisions

The main operative sections of this legislation are primarily found in the Schedule, which amends the previous determination under section 98C(1)(b) of the National Health Act 1953. This amendment, effective from 1 July 2009, includes both additions and deletions of listed drugs, specifically Metformin and Mupirocin as additions, and certain forms of Oestradiol and Oestradiol with Norethisterone as deletions. These changes are pivotal as they dictate which pharmaceutical benefits will be provided under the Pharmaceutical Benefits Scheme (PBS), ensuring that Australians have access to essential medicines. The Minister's role in determining these drugs and their forms, as outlined in sections 85(2) to 85(6), is crucial in shaping the healthcare landscape by specifying which medicines will be subsidized and how they will be administered. The obligations imposed by this Act on the parties involved are significant and multifaceted. The Minister is tasked with declaring drugs and medicinal preparations to be listed drugs under subsection 85(2), ensuring they meet the criteria for inclusion in the PBS. Additionally, the Minister must determine the form and administration of these listed drugs, which includes specifying the brand of the pharmaceutical item (subsection 84(1)). Furthermore, the Act requires that the Minister establish conditions under which payments will be made for the supply of pharmaceutical benefits by approved pharmacists and approved medical practitioners, as stipulated in section 98C(1)(b). These obligations ensure a structured and regulated approach to the provision of pharmaceutical benefits, maintaining the integrity and accessibility of the PBS. The legislation outlines various consequences for breaches and non-compliance with its provisions. While the Act does not explicitly detail criminal penalties, breaches of its conditions could potentially lead to civil penalties or administrative actions. For instance, failure to comply with the declared forms and brands of listed drugs, or the specified conditions for payments, could result in fines or other corrective measures. Additionally, any entity or individual found to be in breach of the Act’s requirements could face legal action, impacting their ability to operate within the PBS framework. The exact penalties are not detailed in the Act but are subject to interpretation and enforcement by relevant authorities.

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Area of Law
Health Law
Instrument
Legislative Instrument
Concepts
Commencement Provisions
Regulatory Standards
Pharmaceutical Benefits

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