Pharmaceutical Benefits Act 1944

Legislation au C1944A00011 Not in force Act

Legislation content

PHARMACEUTICAL BENEFITS.

 

No. 11 of 1944.

An Act to make provision for the Supply of Pharmaceutical Benefits.

[Assented to 5th April, 1944.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Pharmaceutical Benefits Act 1944.

Commencement.

2. This Act shall commence on a date to be fixed by Proclamation.


Non-application of Act to certain parts of the Commonwealth.

3. The Governor-General may, by Proclamation, declare that this Act shall not have effect in any part of the Commonwealth specified in the Proclamation (being a part of the Commonwealth to which the National Security (Emergency Control) Regulations apply) and, so long as the Proclamation continues in force, this Act shall not have effect in that part.

Definitions.

4. In this Act, unless the contrary intention appears—

“approved hospital authority” means a hospital authority for the time being approved under section eleven of this Act;

“approved pharmaceutical chemist” means a pharmaceutical chemist for the time being approved under section ten of this Act;

“hospital authority” means the governing body of a public hospital or the owner of a private hospital;

“medical practitioner” means a medical practitioner registered or licensed under any law of the Commonwealth or of a State or Territory of the Commonwealth providing for the registration or licensing of medical practitioners;

“pharmaceutical benefits” means pharmaceutical benefits specified in section seven of this Act;

“pharmaceutical chemist” means any person registered as a pharmacist or pharmaceutical chemist under any law of the Commonwealth or of a State or Territory of the Commonwealth providing for the registration of pharmacists or pharmaceutical chemists, and includes any friendly society or other body of persons (whether corporate or unincorporate) carrying on business as a pharmaceutical chemist in accordance with the law of the Commonwealth or of a State or Territory of the Commonwealth;

“the Director-General” means the Director-General of Health;

“this Act” includes the regulations.

Administration.

5. The Director-General shall, subject to any direction of the Minister, have the general administration of this Act.

Delegation.

6.—(1.) The Minister may, by writing under his hand, delegate all or any of his powers and functions under this Act (except this power of delegation) so that the delegate may exercise the powers and functions specified in the instrument of delegation.

(2.) The Director-General may, by writing under his hand, delegate all or any of his powers and functions under this Act (except this power of delegation) so that the delegate may exercise the powers and functions specified in the instrument of delegation.

(3.) Every delegation under this section shall be revocable at will and no delegation shall prevent the exercise of any power or function by the Minister or by the Director-General, as the case may be.


Pharmaceutical benefits.

7. The pharmaceutical benefits referred to in this Act shall consist of—

(a) uncompounded medicines the names of which, and medicinal compounds the formulae of which, are contained in a prescribed formulary to be known as the Commonwealth Pharmaceutical Formulary; and

(b) materials and appliances (not being uncompounded medicines or medicinal compounds) the names of which are contained in a prescribed addendum to the Commonwealth Pharmaceutical Formulary.

Provision of pharmaceutical benefits.

8.—(1.) Subject to this Act, every person ordinarily resident in the Commonwealth shall be entitled to receive pharmaceutical benefits.

(2.) A person receiving any pharmaceutical benefit in accordance with this Act shall not be under any obligation to make any payment therefor to the person supplying the pharmaceutical benefit.

(3.) Notwithstanding the provisions of the last preceding sub-section, a person supplying a pharmaceutical benefit in accordance with this Act shall be entitled to make such special charges (if any) as are proscribed.

(4.) A person shall not be disqualified from receiving any pharmaceutical benefit by reason of his sickness having been caused by his own misconduct.

Pharmaceutical benefits to be provided on prescriptions.

9.—(1.) Subject to sub-section (4.) of this section, a person shall not be entitled to receive any pharmaceutical benefit except—

(a) from an approved pharmaceutical chemist; and

(b) on presentation of a written and signed prescription or order (which shall be in accordance with the prescribed form and written on a form supplied by the Commonwealth) of a medical practitioner.

(2.) Where any person has received any pharmaceutical benefit in accordance with a prescription or order therefor, that person shall not be entitled to receive the pharmaceutical benefit again on that prescription or order unless a direction to that effect in the handwriting of the medical practitioner concerned is included in or added to the prescription or order in accordance with the regulations.

(3.) Where an approved pharmaceutical chemist suspects that a prescription or order has not been signed by a medical practitioner or has been forged or fraudulently obtained, he shall be entitled, before supplying the pharmaceutical benefit specified in the prescription or order, to require the person presenting the prescription or order to furnish him with a statement in accordance with the prescribed form.

(4.) The Director-General may, in respect of any place where there is no approved pharmaceutical chemist, approve of the supply of pharmaceutical benefits by any medical practitioner in accordance with such conditions as are prescribed.


Approved pharmaceutical chemists.

10.—(1.) The Director-General shall, on application by a pharmaceutical chemist who is willing to supply on demand pharmaceutical benefits, approve that pharmaceutical chemist for the purposes of this Act.

(2.) Every approved pharmaceutical chemist shall display, at each of the places at which he carries on business, a sign, in accordance with the prescribed form, indicating that he has been approved under this Act.

Approved hospital authorities.

11.—(1.) A hospital authority may make application to the Director-General for approval to supply pharmaceutical benefits.

(2.) Every such application shall state the person who will dispense or supply the pharmaceutical benefits on behalf of the hospital authority.

(3.) The Director-General may, in his discretion, approve a hospital authority for the purposes of this Act.

Suspension, &c., of approval.

12.—(1.) The Director-General may, for good cause shown, and in accordance with the regulations, suspend or revoke his approval of a pharmaceutical chemist or hospital authority under section ten or eleven of this Act and may at any time remove any such suspension or revocation.

(2.) Any pharmaceutical chemist the approval of whom, or any hospital authority the approval of which, by the Director-General has been suspended or revoked under this section may appeal to the Minister, who may confirm, vary or reverse the decision of the Director-General.

(3.) The Director-General may, at the request of an approved pharmaceutical chemist or approved hospital authority, revoke his approval of that pharmaceutical chemist or hospital authority under section ten or eleven of this Act.

Payments for supply of pharmaceutical benefits.

13.—(1.) An approved pharmaceutical chemist or a medical practitioner who has supplied any pharmaceutical benefit in accordance with the provisions of this Act shall be entitled to payment in respect thereof from the Commonwealth at the prescribed rate.

(2.) An approved hospital authority shall, subject to this Act, be entitled to payment from the Commonwealth, at the rates prescribed in respect of the supply of pharmaceutical benefits by hospital authorities, in respect of all pharmaceutical benefits supplied by the hospital authority in accordance with the provisions of this Act.

(3.) The regulations may provide that an approved hospital authority shall be entitled to payment from the Commonwealth, at the prescribed rates, in respect of the supply of prescribed uncompounded medicines, medicinal compounds, materials and appliances which are not pharmaceutical benefits.

State public hospitals.

14. The Governor-General may enter into an arrangement with the Governor in Council of a State in respect of the supply of pharmaceutical benefits by any hospital administered by the Government of that State.


Special arrangements for persons in isolated areas &c.

15.—(1.) The Minister may make such special arrangements as he thinks fit for the purpose of providing that adequate service in lieu of all or any of the benefits provided for by this Act will be available to persons living in isolated areas or under such special conditions that those benefits cannot be efficiently provided in accordance with the general provisions of this Act.

(2.) Where special arrangements are made in accordance with the last preceding sub-section, any provisions of this Act inconsistent therewith shall not be applicable in relation to the persons provided for by the special arrangements.

Arrangements for provision of medical services.

16. The Minister may, on behalf of the Commonwealth, enter into an agreement (on such terms as to remuneration, allowances and otherwise as he thinks fit) with any medical practitioner providing that the services of the medical practitioner shall be available without charge to members of the public for the purpose of furnishing prescriptions and orders for the purposes of this Act.

Payment of benefits to be made from National Welfare Fund.

17. Payments in respect of pharmaceutical benefits shall be made out of the Trust Account established under the National Welfare Fund Act 1943 and known as the National Welfare Fund.

Consultative Council.

18. For the purposes of this Act there shall be a Consultative Council consisting of six persons appointed by the Minister.

Formulary Committee.

19. For the purposes of this Act there shall be a Formulary Committee consisting of six persons appointed by the Minister of whom two shall be practising medical practitioners, two shall be practising pharmaceutical chemists, and one (if available) shall be a pharmacologist.

Pharmaceutical Benefits Committee.

20. The Minister may appoint in each State a Pharmaceutical Benefits Committee and may refer to any such Committee, for advice or report, any matter arising under this Act.

Payments not to be demanded for pharmaceutical benefits.

21. Subject to sub-section (3.) of section eight of this Act, a person shall not demand or receive any payment in respect of any pharmaceutical benefit supplied in accordance with this Act from the person to whom the benefit was supplied.

Penalty: Fifty pounds or imprisonment for three months.

Prescriptions not to be issued for persons not under personal attention.

22. A medical practitioner shall not write a prescription in accordance with any prescribed form unless he is satisfied, by personal examination of the person in respect of whom the prescription is written, that the pharmaceutical benefit specified in the prescription is necessary for the treatment of that person.

Penalty: Fifty pounds or imprisonment for three months.

Offences.

23.—(1.) A person shall not—

(a) make or present to the Director-General or to any officer or person doing duty under this Act any statement or document which is false or misleading in any particular;


(b) obtain any pharmaceutical benefit to which he is not entitled;

(c) obtain payment in respect of the supply of any pharmaceutical benefit which is not payable;

(d) not being a medical practitioner, write a prescription in accordance with the prescribed form;

(e) by means of impersonation, or any false or misleading statement, or any fraudulent device, obtain any pharmaceutical benefit or any payment in respect of a pharmaceutical benefit; or

(f) by any false or misleading representation, aid or abet any person to obtain any pharmaceutical benefit or any payment in respect of a pharmaceutical benefit.

Penalty: Fifty pounds or imprisonment for three months.

(2.) Any person convicted of an offence against this section may, in addition to the penalty imposed for the offence, be ordered to repay to the Commonwealth the value of any pharmaceutical benefit received by that person, or any amount received by that person in respect of the supply of a pharmaceutical benefit, in consequence of the act in respect of which he was convicted.

Consent to prosecution.

24. An offence against this Act shall not be prosecuted without the written consent of the Minister.

Powers of authorized persons.

25. For the purposes of this Act, any person authorized by the Minister or the Director-General to act under this section may—

(a) enter at all reasonable times the premises of any approved pharmaceutical chemist;

(b) make such examination and inquiry as he thinks fit for the purposes of ascertaining whether the provisions of this Act are being complied with;

(c) take samples of drugs, medicines, substances, materials or appliances which may be supplied as pharmaceutical benefits;

(d) examine any person employed in any such premises with respect to any matter under this Act; and

(e) exercise such powers and functions as are prescribed.

Annual report.

26. The Director-General shall, within three months after the end of each financial year, prepare and furnish to the Minister, for presentation to the Parliament, a report as to the administration and operation of this Act.

Regulations.

27. The Governor-General may make regulations not inconsistent with this Act prescribing all matters which are by this Act required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act, and in particular for—

(a) prescribing the terms and conditions subject to which pharmaceutical benefits shall be supplied;


(b) prescribing the terms and conditions subject to which payment in respect of the supply of pharmaceutical benefits will be made and the method of making such payments;

(c) prescribing the standards of composition or purity of pharmaceutical benefits subject to which payment in respect of the supply thereof will be made;

(d) prescribing the functions and regulating the conduct of any Council or Committee appointed under this Act and for prescribing the fees and allowances to be paid to members thereof; and

(e) prescribing penalties not exceeding Fifty pounds or imprisonment for three months for offences against the regulations.

 

Overview

The Pharmaceutical Benefits Act 1944 was enacted to establish a framework for the supply of pharmaceutical benefits to the Australian public. This legislation was introduced to address the need for a structured and accessible system for providing medications and pharmaceutical services to the community. Enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, the Act aims to ensure that pharmaceutical benefits are provided efficiently and effectively. The primary policy objective of the Act is to make pharmaceutical benefits available to all persons ordinarily resident in the Commonwealth, ensuring that these benefits are accessible without charge to the recipients while allowing for reasonable special charges as prescribed. The Act also mandates the establishment of various committees and councils to oversee the administration and operation of the pharmaceutical benefits scheme, ensuring compliance and effective delivery of services.

Scope and Application

The Pharmaceutical Benefits Act 1944 establishes the framework for the supply of pharmaceutical benefits in Australia. The Act applies to all persons ordinarily resident in the Commonwealth, and it aims to ensure the provision of specified pharmaceutical benefits, including uncompounded medicines, medicinal compounds, materials, and appliances, as listed in the Commonwealth Pharmaceutical Formulary and its addendum. The Act covers the administration, delegation of powers, and the requirements for the supply of these benefits, including the necessity for a written and signed prescription or order from a medical practitioner. The Act also outlines the roles and responsibilities of approved pharmaceutical chemists, hospital authorities, and medical practitioners, and it details the process for approving such entities. The supply of pharmaceutical benefits can be subject to special arrangements for isolated areas or special conditions. Payments for the supply of pharmaceutical benefits are to be made from the National Welfare Fund. The Act provides for various committees and councils to advise on the implementation of the Act, and it sets out specific offences and penalties for non-compliance, including fines and imprisonment. Additionally, the Act allows for the creation of regulations to further detail the administration and enforcement of the Act. The Governor-General may exempt certain parts of the Commonwealth from the application of the Act if national security emergencies are declared.

Key Provisions

The Pharmaceutical Benefits Act 1944 provides for the supply of pharmaceutical benefits to persons ordinarily resident in the Commonwealth, outlined in sections 7 and 8. These benefits include specified uncompounded medicines, medicinal compounds, materials, and appliances, which are detailed in the Commonwealth Pharmaceutical Formulary and its addendum. The Act mandates that these benefits be supplied by approved pharmaceutical chemists and medical practitioners based on written and signed prescriptions or orders from medical practitioners. Approved pharmaceutical chemists and medical practitioners are entitled to payment from the Commonwealth at prescribed rates, as detailed in sections 13 and 14. The Act also allows for special arrangements and agreements for certain areas and services, such as those in isolated areas or provided by state public hospitals. The Act imposes several obligations on the parties it governs. It requires the Director-General to administer the Act and allows for the delegation of powers, as stipulated in sections 5 and 6. Pharmaceutical chemists and hospital authorities must apply for approval to supply pharmaceutical benefits and display required signs if approved, as detailed in sections 10 and 11. The Act also mandates that medical practitioners ensure the necessity of prescribed pharmaceutical benefits through personal examination, as outlined in section 22. Furthermore, the Act establishes various councils and committees, such as the Consultative Council and the Formulary Committee, to advise and report on matters related to the Act, as mentioned in sections 18 and 19. The Act imposes offences and penalties for breaches of its provisions. For instance, it is an offence to make false or misleading statements or documents, obtain pharmaceutical benefits to which one is not entitled, or present false prescriptions, each carrying a penalty of fifty pounds or imprisonment for three months, as detailed in section 23. The Act also stipulates that any person convicted of an offence may be ordered to repay the value of any pharmaceutical benefit received or any payment in respect of a pharmaceutical benefit, as stated in section 23(2). Offences under the Act cannot be prosecuted without the written consent of the Minister, as outlined in section 24. Authorized persons have the power to enter premises, conduct examinations, and take samples to ensure compliance with the Act, as detailed in section 25. Finally, the Director-General must prepare an annual report on the administration and operation of the Act, to be presented to Parliament, as stated in section 26.

Legal classification tags

Area of Law
Pharmaceutical Law
Instrument
Act
Concepts
Commencement Provisions
Definitions & Interpretation
Regulatory Standards
Offence Provisions
Enforcement Powers
Consultation Requirements

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.