National Health (Paraplegic and Quadriplegic Program) Special Arrangement Amendment Instrument 2016 (No.1) (PB 15 of 2016)

Administered by Department of Health, Disability and Ageing

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EXPLANATORY STATEMENT

National Health Act 1953

National Health (Paraplegic and Quadriplegic Program) Special Arrangement Amendment Instrument 2016 (No.1)

PB 15 of 2016

Authority

Subsection 100(1) of the National Health Act 1953 (the Act) enables the Minister to make special arrangements for the supply of pharmaceutical benefits.  

Subsection 100(2) of the Act provides that the Minister may vary or revoke a special arrangement made under subsection 100(1).

Purpose

The purpose of this legislative instrument, made under subsections 100(1) and (2) of the Act (this Instrument), is to amend the National Health (Paraplegic and Quadriplegic Program) Special Arrangement 2010 (PB 118 of 2010) (the Special Arrangement) to make changes to the Special Arrangement relating to the Paraplegic and Quadriplegic Program.

‘Authorised associations’ may supply pharmaceutical benefits under the Special Arrangement to ‘eligible persons’. A person is an ‘eligible person’ for the purposes of the Special Arrangement if:
 

(a)        they are an ‘eligible person’ within the meaning of the Health Insurance Act 1973, that is, eligible to receive Medicare benefits, and

(b)       have paraplegia or quadriplegia, and

(c)        are a member of an ‘authorised association’.

 

This Instrument amends ‘the Responsible Person’ in the Special Arrangement for the listed drug Macrogol 3350 with the brand name Macrovic, Aspen Pharma Pty Ltd, ABN 88 004 118 594 (with the ‘Responsible Person Code’ of QA) has been replaced by Arrow Pharma Pty Ltd, ABN 33 605 909 911 (with the ‘Responsible Person Code’ of RF) as the Responsible Person and the brand name Chemists’ Own Macrogol with Electrolytes, Fawns and McAllan Proprietary Ltd, ABN 16 004 296 066 (with the ‘Responsible Person Code’ of FM) has been replaced by Arrow Pharma Pty Ltd, ABN 33 605 909 911 (with the ‘Responsible Person Code’ of RW) as the Responsible Person.  This necessitated amendments to Schedule 1 and Schedule 2 of the Special Arrangement.

 

These changes reflect changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012 made under sections 84AF, 84AK, 85, 85A, 88 and 101 of the Act, which commence on the same day.

Consultation

The amendments made by this Instrument accord with recommendations made by the Pharmaceutical Benefits Advisory Committee (PBAC). 

An ongoing and formal process of consultation in relation to matters relevant to the Special Arrangement includes the involvement of interested parties through the membership of the PBAC. 

PBAC is an independent expert body established by section 100A of the Act 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 PBAC, and that would enable them to contribute meaningfully to the deliberations of PBAC. When recommending the listing of a medicine on the Pharmaceutical Benefits Scheme (PBS), 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.

Pharmaceutical companies were consulted throughout the process of changes to the listings on the PBS and for this Instrument. This includes consultation through the PBAC process, and agreement to final listing details.

This instrument commences on 1 March 2016.

This instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

National Health (Paraplegic and Quadriplegic Program) Special Arrangement Amendment Instrument 2016 (No 1)

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of this legislative instrument, made under subsections 100(1) and (2) of the Act, is to amend the National Health (Paraplegic and Quadriplegic Program) Special Arrangement 2010 (PB 118 of 2010) (the Special Arrangement) to make changes to the special arrangement relating to the Paraplegic and Quadriplegic Program.

This Instrument amends ‘the Responsible Person’ in the Special Arrangement for the listed drug Macrogol 3350 with the brand name Macrovic, Aspen Pharma Pty Ltd, ABN 88 004 118 594 (with the ‘Responsible Person Code’ of QA) has been replaced by Arrow Pharma Pty Ltd, ABN 33 605 909 911 (with the ‘Responsible Person Code’ of RF) as the Responsible Person and the brand name Chemists’ Own Macrogol with Electrolytes, Fawns and McAllan Proprietary Ltd, ABN 16 004 296 066 (with the ‘Responsible Person Code’ of FM) has been replaced by Arrow Pharma Pty Ltd, ABN 33 605 909 911 (with the ‘Responsible Person Code’ of RW) as the Responsible Person.  This necessitated amendments to Schedule 1 and Schedule 2 of the Special Arrangement.

Human rights implications

This legislative instrument engages Article 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by assisting with the progressive realisation by all appropriate means of the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

The PBS is a benefit scheme which assists with advancement of this human right by providing for subsidised access by patients to medicines. The recommendatory role of the Pharmaceutical Benefits Advisory Committee (PBAC) ensures that decisions about subsidised access to medicines on the PBS are evidence-based.

Conclusion

This Legislative Instrument is compatible with human rights because it advances the protection of human rights.

Julianne Quaine

Assistant Secretary

Pharmaceutical Access Branch

Pharmaceutical Benefits Division

Department of Health

Overview

The National Health Act 1953, as amended by the National Health (Paraplegic and Quadriplegic Program) Special Arrangement Amendment Instrument 2016 (No. 1), seeks to refine the special arrangement provisions for the Paraplegic and Quadriplegic Program. This legislative instrument, enacted by the Parliament of Australia, aims to ensure that individuals with paraplegia or quadriplegia continue to receive appropriate pharmaceutical benefits. The amendment was prompted by a need to update the responsible entities for specific pharmaceutical products, reflecting changes in the broader National Health (Listing of Pharmaceutical Benefits) Instrument 2012. This change ensures that the Paraplegic and Quadriplegic Program remains aligned with the latest recommendations from the Pharmaceutical Benefits Advisory Committee (PBAC), which advises on the availability of pharmaceutical benefits. The PBAC's role is to ensure that decisions about drug listings on the Pharmaceutical Benefits Scheme (PBS) are made with consideration for clinical effectiveness, safety, and cost-effectiveness, thereby supporting the progressive realisation of the right to the highest attainable standard of physical and mental health.

Scope and Application

The National Health (Paraplegic and Quadriplegic Program) Special Arrangement Amendment Instrument 2016 (No. 1) is an amendment made under subsections 100(1) and 100(2) of the National Health Act 1953, which provides the Minister with the authority to create special arrangements for the supply of pharmaceutical benefits. This instrument specifically modifies the National Health (Paraplegic and Quadriplegic Program) Special Arrangement 2010 to update the entities responsible for supplying pharmaceutical benefits to eligible persons under the Paraplegic and Quadriplegic Program. Eligible persons, as defined by the Health Insurance Act 1973, are individuals who are eligible for Medicare benefits and suffer from paraplegia or quadriplegia, and are members of authorised associations. The amendment pertains to the replacement of responsible persons for the drug Macrogol 3350, with Aspen Pharma Pty Ltd being replaced by Arrow Pharma Pty Ltd for the brand name Macrovic and Fawns and McAllan Proprietary Ltd being replaced by Arrow Pharma Pty Ltd for the brand Chemists’ Own Macrogol with Electrolytes. These changes are reflected in Schedules 1 and 2 of the Special Arrangement and align with the changes made to the National Health (Listing of Pharmaceutical Benefits) Instrument 2012, commencing on the same day. The amendment is made in accordance with recommendations from the Pharmaceutical Benefits Advisory Committee and reflects consultations with pharmaceutical companies and relevant stakeholders.

Key Provisions

The National Health (Paraplegic and Quadriplegic Program) Special Arrangement Amendment Instrument 2016 (No.1) amends the existing National Health (Paraplegic and Quadriplegic Program) Special Arrangement 2010. The main changes introduced by this Instrument include the substitution of responsible persons for the supply of the pharmaceutical benefit Macrogol 3350. Specifically, the Instrument replaces Aspen Pharma Pty Ltd (ABN 88 004 118 594) with Arrow Pharma Pty Ltd (ABN 33 605 909 911) for the brand name Macrovic, and Fawns and McAllan Proprietary Ltd (ABN 16 004 296 066) with Arrow Pharma Pty Ltd for the brand name Chemists’ Own Macrogol with Electrolytes. These changes are reflected in Schedules 1 and 2 of the Special Arrangement. The Act imposes several obligations on the parties involved. Firstly, 'authorised associations' are permitted to supply pharmaceutical benefits to 'eligible persons' as defined in the Health Insurance Act 1973 and specified in the Special Arrangement. An eligible person must be eligible for Medicare benefits, have paraplegia or quadriplegia, and be a member of an authorised association. The Responsible Person, now Arrow Pharma Pty Ltd, must ensure that the pharmaceutical benefits are supplied in compliance with the terms of the Special Arrangement and the National Health Act. These amendments were made in consultation with the Pharmaceutical Benefits Advisory Committee (PBAC) and the pharmaceutical companies involved. Failure to comply with the requirements of the Special Arrangement may result in various consequences. Under the National Health Act, breaches may lead to civil or criminal penalties, depending on the nature and severity of the breach. The Act allows for fines and potential imprisonment for serious breaches, although specific penalties are not detailed in the Explanatory Statement. Compliance with the Special Arrangement is crucial to avoid these potential penalties and to ensure the continued provision of subsidised pharmaceutical benefits to eligible persons. The amendments made by this Instrument are consistent with the recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC). PBAC, an independent expert body established under the Act, recommends which drugs should be available as pharmaceutical benefits. The consultation process with PBAC and pharmaceutical companies ensures that the decisions regarding the listing of medicines on the Pharmaceutical Benefits Scheme (PBS) are evidence-based and take into account clinical effectiveness, safety, and cost-effectiveness. This process also ensures that the changes align with the overarching goal of providing subsidised access to medicines to support the highest attainable standard of physical and mental health. This legislative instrument is compatible with human rights as it engages with Article 2 and 12 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) by assisting in the progressive realisation of the right to the highest attainable standard of physical and mental health. The PBS, by providing subsidised access to medicines, supports the advancement of this human right. The involvement of the Pharmaceutical Benefits Advisory Committee (PBAC) ensures that decisions about access to medicines are evidence-based, further protecting human rights.

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