EXPLANATORY STATEMENT
INSTRUMENT NUMBER PB 82 OF 2017
NATIONAL HEALTH ACT 1953
National Health (Pharmaceutical Benefits Scheme- class of pharmaceutical items – Subsection 99ACA(3) Determination 2017
Authority and Operation
This legislative instrument is made pursuant to section 99ACA(3) of the National Health Act 1953 (the Act) to determine a class of pharmaceutical items that are deemed to have been subjected to an administrative 12.5% price reduction.
This is to reflect those administrative price reductions that applied to certain pharmaceutical items prior to 1 August 2007, being the commencement of the National Health Amendment (Pharmaceutical Benefits Scheme) Act 2007, which codified the 12.5% reduction through the creation of section 99ACB of the Act.
This Instrument revokes and replaces the Determination under subsection 99ACA(3) of the National Health Act 1953 (PB 59 of 2007).
This Instrument commences on the day of registration on the Federal Register of Legislation.
Purpose
Section 99ACA is a definitional section for the purposes of Division 3A of the Act. Division 3A is concerned with statutory price reductions for listed brands of pharmaceutical items.
A determination under section 99ACA(3) is needed to ensure that those pharmaceutical items that have previously taken a 12.5% administrative price reduction are not also subjected to a further price reduction under section 99ACB.
Section 99ACB(2) states that there are no further price reductions to those drugs identified as being “in a class of pharmaceutical items to which a 12.5% administrative price reduction has applied”.
This Instrument determines the classes of pharmaceutical items to which a 12.5% administrative price reduction has applied, defining the relevant class for the purpose of section 99ACB(2).
Schedule 1 sets out the determined classes of pharmaceutical items, by drug and manner of administration.
Consultation
Consultation was conducted when this Instrument was initially made. No further consultation was required.
General
This instrument is a legislative instrument for the purposes of the Legislation Act 2003.