EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Health and Ageing

National Health Act 1953

Department of Health and Ageing Determination No. PB 1 of 2006

Section 90 of the National Health Act 1953 (the Act) provides for the Secretary to approve a pharmacist to supply pharmaceutical benefits at or from particular premises.

The Australian Community Pharmacy Authority (the ACPA) is the body, established under section 99J of the Act, which considers applications under section 90 and makes recommendations to the Secretary as to whether or not a pharmacist should be approved in respect of particular premises.

In making recommendations in relation to applications, the ACPA must comply with the rules (Rules) determined by the Minister under subsection 99L(1) of the Act.  Rules have been determined by the Minister in relation to the location of pharmacies.

Subsection 99L(2) of the Act provides that a determination made under subsection 99L(1) is a disallowable instrument.

Section 99L of the Act is located in Division 4B of Part VII.   The operation of that Division has now been extended by the Health Legislation Amendment Act 2005, and will now operate until 30 June 2006.  A consequence of that extension is that, rather than expire on 31 December 2005, the Rules will remain in effect until 30 June 2006.

This is in accordance with the Government’s decision to extend the existing Rules until 30 June 2006.  New Rules will be implemented from 1 July 2006.

The Department of Health and Ageing Determination No. PB 1 of 2006 (the Determination) amends Determination No. PB 8 of 2000 made on 11 July 2000 (as amended by Determination No. PB 13 of 2000 made on 5 September 2000, Determination No. PB 9 of 2002 made on 10 June 2002, Determination No. PB 15 of 2002 made on 30 October 2002, Determination No. PB 14 of 2004 made on 12 August 2004 and Determination No. PB 14 of 2005 made on 29 June 2005).

The Determination amends the existing Rules to preclude pharmacies which are located within, adjacent to, or connected to, a supermarket, and to which members of the public have direct access from within the premises of the supermarket, from being recommended by the ACPA for approval under section 90 of the Act to supply pharmaceutical benefits.

The Determination makes the same amendments that were made by Determination No. PB 14 of 2005. However, Determination No. PB 14 of 2005 is expressed to cease to have effect after 31 December 2005, whereas the Determination will operate until 30 June 2006.  

Details of the amendments are provided in the Attachment.

The Determination commences on 1 January 2006.

The Pharmacy Guild of Australia, the body which represents a majority of pharmacy owners, has been consulted on this matter. 

ATTACHMENT

DETAILS OF THE AMENDMENT OF DETERMINATION UNDER SUBSECTION 99L(1) OF THE NATIONAL HEALTH ACT 1953

Clause 1 provides for the Determination to commence on 1 January 2006.

Clause 2 provides that the Determination will cease to have effect after 30 June 2006.

Clause 3 provides for Schedule 1 to amend the Determination made under subsection 99L(1) of the National Health Act 1953 on 11 July 2000, as amended.

Schedule 1 – Amendments

Item 1 inserts a definition of “supermarket”.  The word supermarket is intended to have its ordinary meaning. In addition, it includes any retail store, or market, selling food and other domestic goods whether or not by self-service and regardless of size. However, the definition of supermarket does not include a retail store or market commonly known as a department store or in which food or produce is sold only in a café, coffee shop, restaurant or other prepared food or beverage counter.

Item 2 makes a consequential amendment to paragraph 5 to include reference to new paragraph 5A.

Item 3 inserts new paragraph 5A.  New paragraph 5A provides that a recommendation must not be made under paragraph 5 in relation to an applicant’s premises if the applicant’s premises are located within, adjacent to, or connected to, a supermarket, and members of the public have direct access to the applicant’s premises from within the premises of the supermarket.

Item 4 makes a consequential amendment to paragraph 6 to include reference to new paragraph 9A.

Item 5 makes a consequential amendment to paragraph 6A to include reference to new paragraph 9A.

Item 6 makes a consequential amendment to paragraph 6B to include reference to new paragraph 9A.

Item 7 makes a consequential amendment to paragraph 7 to include reference to new paragraph 9A.

Item 8 inserts new paragraph 9A. New paragraph 9A provides that a recommendation must not be made under paragraph 6, 6A, 6B or 7 in relation to an applicant’s premises if the applicant’s premises are located within, adjacent to, or connected to, a supermarket, and members of the public have direct access to the applicant’s premises from within the premises of the supermarket.