National Health Act 1953 - Determinations under sections 85, 85A and 88 (No. PB 38 of 2007)

Administered by Department of Health, Disability and Ageing

Legislation au F2007L01245 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

NATIONAL HEALTH ACT 1953

DETERMINATIONS UNDER SECTIONS 85, 85A and 88

No. PB 38 OF 2007

 

Purpose and operation

1. The purpose of the Australian Pharmaceutical Benefits Scheme (PBS) is to provide timely, reliable and affordable access for the Australian community to necessary and cost-effective medicines.

2. The PBS is regulated by Part VII of the National Health Act 1953 (the Act), which provides for the supply of listed drugs and medicinal preparations as pharmaceutical benefits.

3. “Pharmaceutical benefit” is defined under subsection 84(1) of the Act as a drug or medicinal preparation in relation to which, by virtue of section 85 of the Act, Part VII of the Act applies.

4. Subsection 85(2) of the Act empowers the Minister to declare the drugs and medicinal preparations to which Part VII of the Act applies, and the restrictions, if any, that apply to the prescribing of such drugs and medicinal preparations as pharmaceutical benefits.

5. Subsection 85(2A) provides that the Minister may, in a declaration under subsection 85(2), declare that a particular pharmaceutical benefit is to be a relevant pharmaceutical benefit for the purposes of section 88A, and specify the circumstances in which a prescription for the supply of the pharmaceutical benefit may be written.

6. Subsection 85(3) provides that the Minister may determine, by reference to strength, type of unit, size of unit or otherwise, the form or forms of a drug or medicinal preparation referred to in subsection 85(2).  Drugs or medicinal preparations in any other form are not pharmaceutical benefits.

7. Subsection 85(4) provides that a form of a drug or medicinal preparation as determined by the Minister under subsection 85(3) may be such as to require the addition of a substance or substances to the drug or medicinal preparation so that it will be suitable for administration in a particular manner or at a particular strength.

8. Subsection 85(6) provides that the Minister may determine, in respect of a drug or medicinal preparation to which Part VII of the Act applies, a brand or brands under which the drug or medicinal preparation may be supplied under that Part VII of the Act, and where such a determination is in force in relation to a drug or medicinal preparation, Part VII of the Act does not apply in relation to the drug or medicinal preparation as marketed under any other brand.

9. Subsection 85A(1) of the Act provides that the Minister may determine, by reference to strength, type of unit, size of unit or otherwise, the form or forms of a pharmaceutical benefit that is or are allowable for the purposes of this Part for prescription by persons included in a class of persons specified in the determination.

10. Subsection 85A(2) of the Act provides that the Minister may, with respect to the writing of prescriptions by persons included in a specified class of persons for the supply of a pharmaceutical benefit:

(a) determine the maximum quantity or number of units of the pharmaceutical benefit that may, in one prescription, be directed to be supplied on any one occasion, either for all purposes or for particular purposes;

(b) determine the maximum number of occasions on which the supply of the pharmaceutical benefit may, in one prescription, be directed to be repeated, either for all purposes or for particular purposes; and

(c) determine the manner of administration that may, in a prescription, be directed to be used in relation to the pharmaceutical benefit.

11. Section 88A of the Act provides that, where a pharmaceutical benefit is declared in a declaration made under subsection 85(2) of the Act to be a relevant pharmaceutical benefit for the purposes of that section, the writing of a prescription for the supply of the benefit is authorised under Part VII of the Act only in the circumstances specified in the declaration pursuant to subsection 85(2A) of the Act.

12. The determinations made under sections 85, 85A and 88 of the Act on 30 March 2007 with effect from 1 May 2007 (No. PB 31 of 2007) are amended by these determinations.

13. These determinations give effect, as from 1 June 2007, to changes to the list of drugs and medicinal preparations available as pharmaceutical benefits, as detailed in the attached summary of amendments.

Consultations

14. The Pharmaceutical Benefits Advisory Committee (PBAC) is the independent expert body, established by section 100A of the Act, which makes recommendations to the Minister for Health and Ageing about which drugs and medicinal preparations should be available as pharmaceutical benefits. Under subsection 101(4) of the Act, a drug or medicinal preparation may not be declared to be a drug or medicinal preparation to which Part VII of the Act applies unless the PBAC has recommended that it be so declared. When recommending a medicine for listing 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.

15. The determinations give effect to recommendations made by the PBAC. PBAC members are selected 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.

16. Details of the determinations are set out in the Attachment.

17. These determinations are legislative instruments for the purposes of the Legislative Instruments Act 2003.

18. The determinations were made on 26 April 2007 and commenced on 1 June 2007

 

SUMMARY OF AMENDMENTS

 

LIST OF MANUFACTURERS

 

Manufacturers Added

CR

Pharmacor Limited

DB

Diabetes Association of Australia

 

Manufacturers Deleted

SL

SBPA A Division of Sandoz Pty Ltd

 

 

FIRST SCHEDULE - PART 1

 Items Added

Olmesartan Medoxomil

Tablet 20 mg

 

Tablet 40 mg

Olmesartan Medoxomil with

Tablet 20 mg-12.5 mg

Hydrochlorothiazide

Tablet 40 mg-12.5 mg

 

Tablet 40 mg-25 mg

 

Forms Added

Etanercept

Injections 50 mg in 1 mL single use pre-filled syringes, 4

Glucose Indicator - Blood

Electrode strips, 50 (Glucoboy)

 

Brands Added

Aciclovir

Tablet 800 mg (CR)

Bupropion Hydrochloride

Tablet 150 mg (sustained release) (AF)

Gabapentin

Capsule 400 mg (CR)

Gliclazide

Tablet 30 mg (modified release) (RA)

Paroxetine Hydrochloride

Tablet equivalent to 20 mg paroxetine (CR)

Pravastatin Sodium

Tablet 10 mg (CR, WA)

 

Tablet 20 mg (CR, WA)

 

Tablet 40 mg (CR, WA)

Ramipril

Tablet 1.25 mg (AW)

 

Tablet 2.5 mg (AW)

 

Tablet 5 mg (AW)

 

Capsule 10 mg (AW)

Simvastatin

Tablet 5 mg (CR)

 

Tablet 10 mg (CR)

 

Tablet 20 mg (CR)

 

Tablet 40 mg (CR)

 

Tablet 80 mg (CR)

Terbinafine Hydrochloride

Tablet equivalent to 250 mg terbinafine (CR)

Forms Deleted

Cholestyramine

Sachets containing 9.4 g oral powder (equivalent to 8 g cholestyramine), 50

 

Brands Deleted

Carbamazepine

Tablet 100 mg (BG)

 

Tablet 200 mg (BG)

 

Alteration of Manufacturer's Codes

 

 

From

To

Citalopram Hydrobromide

Tablet equivalent to 20 mg citalopram

SL

WA

Enalapril Maleate

Tablet 5 mg

SL

WA

 

Tablet 10 mg

SL

WA

 

Tablet 20 mg

SL

WA

Famotidine

Tablet 20 mg

HX

SZ

 

Tablet 40 mg

HX

SZ

Moclobemide

Tablet 150 mg

HX

SZ

 

Tablet 300 mg

HX

SZ

Roxithromycin

Tablet 150 mg

HX

SZ

 

Tablet 300 mg

HX

SZ

Sertraline Hydrochloride

Tablet equivalent to 50 mg sertraline

SL

WA

 

Tablet equivalent to 100 mg sertraline

SL

WA

Simvastatin

Tablet 5 mg

SL

WA

 

Tablet 10 mg

SL

WA

 

Tablet 20 mg

SL

WA

 

Tablet 40 mg

SL

WA

 

Tablet 80 mg

SL

WA

 

 

FIRST SCHEDULE - PART 2

Forms Added

Etanercept

Injections 50 mg in 1 mL single use pre-filled syringes, 4

 

Brands Added 

Aciclovir

Tablet 200 mg (CR)

Bupropion Hydrochloride

Tablet 150 mg (sustained release) (AF)

 

 

THIRD SCHEDULE - PART 1

Brands Deleted

Carbamazepine

Tablet 100 mg (BG)

 

Tablet 200 mg (BG)

 

ATTACHMENT

Paragraph 1 provides that these determinations commence on 1 June 2007.

Paragraph 2 provides that the determinations (No. PB 31 of 2007) under sections 85, 85A and 88 of the National Health Act 1953 made on 30 March 2007 with effect from 1 May 2007 are, in these Determinations, referred to as the Principal Determinations.

Paragraph 3 provides for the amendment of Paragraph 14 of the Principal Determinations.

Paragraph 4 provides for amendments to the First Schedule — Part 1 to the Principal Determinations.

Paragraph 5 provides for amendments to the First Schedule — Part 2 to the Principal Determinations.

Paragraph 6 provides for amendments to the Third Schedule — Part 1 to the Principal Determinations.

 

The Schedules

The First Schedule - Part 1 lists the forms (strength, type, size etc), the manner of administration, the maximum quantity and maximum number of repeats of those drugs and medicinal preparations that are declared under subsection 85(2) of the Act to be pharmaceutical benefits when prescribed by a medical practitioner.

The First Schedule - Part 2 lists the forms (strength, type, size etc), the purposes, the manner of administration, the maximum quantity and maximum number of repeats of those drugs and medicinal preparations that are declared under subsection 85(2) of the Act to be pharmaceutical benefits when prescribed by a medical practitioner.

The Second Schedule - Part 1 lists the forms (strength, type, size etc), the manner of administration, the maximum quantity and maximum number of repeats of those drugs and medicinal preparations that are declared under subsection 85(2) of the Act to be pharmaceutical benefits when prescribed by a medical practitioner for patients receiving palliative care.

The Second Schedule - Part 2 lists the forms (strength, type, size etc), the purposes, the manner of administration, the maximum quantity and maximum number of repeats of those drugs and medicinal preparations that are declared under subsection 85(2) of the Act to be pharmaceutical benefits when prescribed by a medical practitioner for patients receiving palliative care.

The Third Schedule - Part 1 lists the forms (strength, type, size etc), the manner of administration, the maximum quantity and maximum number of repeats of those drugs and medicinal preparations that are declared under subsection 85(2) of the Act to be pharmaceutical benefits when prescribed by a participating dental practitioner.

The Third Schedule - Part 2 lists the forms (strength, type, size etc), the purposes, the manner of administration, the maximum quantity and maximum number of repeats of those drugs and medicinal preparations that are declared under subsection 85(2) of the Act to be pharmaceutical benefits when prescribed by a participating dental practitioner.

The Fourth Schedule lists the forms, maximum quantity and maximum number or repeats of extemporaneously-prepared pharmaceutical benefits, the ingredients of which are declared in Schedule 4 of the declaration under subsection 85(2) of the Act.

Overview

The National Health Act 1953 was enacted to establish and regulate the Australian Pharmaceutical Benefits Scheme (PBS) to ensure timely, reliable, and affordable access to necessary and cost-effective medicines. The Act is overseen by the Parliament of Australia and its primary policy objective is to facilitate the provision of pharmaceutical benefits to the Australian community. The legislation empowers the Minister for Health to declare drugs and medicinal preparations as pharmaceutical benefits, specify prescribing restrictions, and determine the forms and brands of drugs available under the PBS. These determinations are made following recommendations from the Pharmaceutical Benefits Advisory Committee, ensuring that only clinically effective, safe, and cost-effective medicines are included in the PBS. The Act was amended on 1 June 2007 to update the list of drugs and medicinal preparations available as pharmaceutical benefits, incorporating new additions and deletions as recommended by the PBAC.

Scope and Application

The Australian Pharmaceutical Benefits Scheme (PBS) is designed to ensure the Australian community has timely, reliable, and affordable access to necessary and cost-effective medicines. This scheme is governed by Part VII of the National Health Act 1953, which specifies the supply of listed drugs and medicinal preparations as pharmaceutical benefits. The Act empowers the Minister to declare which drugs and medicinal preparations qualify as pharmaceutical benefits and to specify any restrictions on their prescription. The Minister can also determine the permissible forms, strengths, and units of these pharmaceuticals, as well as the brands under which they may be supplied. Additionally, the Minister can prescribe the allowable forms, strengths, and units for specific classes of prescribers, and set limits on the quantities and repeat prescriptions. The Pharmaceutical Benefits Advisory Committee (PBAC) plays a critical role in recommending which drugs and medicinal preparations should be included in the PBS, based on their clinical effectiveness, safety, and cost-effectiveness. These recommendations are implemented through determinations under sections 85, 85A, and 88 of the Act, which are legislative instruments subject to the Legislative Instruments Act 2003. The determinations, which include amendments to the lists of pharmaceutical benefits and their associated conditions, commenced on 1 June 2007.

Key Provisions

These determinations amend the National Health Act 1953, which regulates the Australian Pharmaceutical Benefits Scheme (PBS). The PBS aims to ensure timely, reliable, and affordable access to necessary and cost-effective medicines. The Minister has the authority to declare which drugs and medicinal preparations are pharmaceutical benefits and to impose any necessary restrictions on their prescription (subsection 85(2)). The Minister can also specify the circumstances under which a prescription may be written for these benefits (subsection 85(2A)). Furthermore, the Minister can determine the forms of drugs or medicinal preparations that qualify as pharmaceutical benefits, including whether they require the addition of substances to be suitable for administration (subsections 85(3) and 85(4)). The Minister can also specify the brands under which these benefits can be supplied (subsection 85(6)). Additionally, the Minister can determine the forms of pharmaceutical benefits allowable for prescription by specified classes of persons, the maximum quantities and repeats allowed in prescriptions, and the permissible administration methods (subsections 85A(1) and 85A(2)). If a pharmaceutical benefit is declared relevant, prescriptions can only be written under specific circumstances (section 88A). The Act imposes several obligations on the parties involved. Manufacturers must adhere to the declared forms, strengths, types, and units of the drugs and medicinal preparations listed as pharmaceutical benefits. Prescribers must comply with the maximum quantities, repeats, and administration methods specified in the determinations. The Pharmaceutical Benefits Advisory Committee (PBAC) is responsible for recommending which drugs and medicinal preparations should be included in the PBS, taking into account factors such as medical conditions, clinical effectiveness, safety, and cost-effectiveness (subsection 101(4)). The Minister must ensure that no drug or medicinal preparation is declared as a pharmaceutical benefit without a PBAC recommendation. Breaches of the provisions in the Act may result in civil or criminal penalties, depending on the nature and severity of the offence. For example, supplying a drug or medicinal preparation not listed as a pharmaceutical benefit could result in fines or imprisonment. Similarly, prescribing outside the specified limits could also lead to penalties. The maximum penalties are not specified in the text, but they would typically depend on the specific breach and relevant legislation.

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