Therapeutic Goods (Charges) Regulations (Amendment) 1995 No. 193
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 193
Issued by authority of the Minister for Family Services
Therapeutic Goods (Charges) Act 1989
Therapeutic Goods (Charges) Regulations (Amendment)
The Therapeutic Goods (Charges) Act (the Act) imposes an annual charge for the registration and listing of therapeutic goods in the Australian Register of Therapeutic Goods (the Register), and an annual charge for maintaining licenses to manufacture therapeutic goods.
Subsection 5(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing the amounts of those charges.
The increases in charges contained in the Regulations have been made in conjunction with the fees made under the accompanying Therapeutic Goods Regulations (Amendment). The increases have been prompted by the need to meet the. Government's decision in August 1989 that the Therapeutic Goods Administration (the TGA), which administers the Act operate on a fifty per cent cost recovery basis, with revenue to be drawn from fees and charges collected from industry. To minimise the impact of the increases in charges to industry, it was agreed between industry and Government that the higher charges will. be phased in over a four year period. The Therapeutic Goods (Charges) Regulations (Amendment) introduce the third incremental increase to a range of annual charges for maintaining registrations and listings of therapeutic goods in the Register, and to a range of manufacturing licenses issued for the manufacture of therapeutic goods.
Details of the Regulations are as follows:
Regulation 1 provides for the Regulations to commence on 1 July 1995.
Regulation 2 provides for the Therapeutic Goods (Charges) Regulations to be amended as provided in these Regulations.
Subregulation 3.1 will increase the annual charge for registrations of prescription drugs in the Register from $440 to $500.
Subregulation 3.2 will increase the annual charge for registrations of all other therapeutic goods from $250 to $300.
Subregulation 3.3 will increase the annual charge for listings of therapeutic goods from $110 to $150. Therapeutic goods listed in the Register that are produced for export only do not attract an annual charge for their listing.
Subregulations 3.4, 3.5, 3.6, 3.7, 3A, 3.9, 3.10 and 3.11 increase annual licensing charges payable for various categories of manufacturing licenses set out under subregulation 3(2) of the Therapeutic Goods (Charges) Regulations. The increases will raise the present charges from $3,800 to $4,200; from $1,900 to $2,100; and from $1,600 to $2,000.
The Regulations commenced from 1 July 1995.
Overview
The Therapeutic Goods (Charges) Regulations (Amendment) 1995 No. 193 were enacted to address the need for increased revenue to support the Therapeutic Goods Administration's (TGA) shift towards a fifty per cent cost recovery basis. The amendments introduced in these Regulations are part of a broader set of changes intended to ensure that the TGA's operational costs are met through fees and charges collected from the industry. The Regulations were issued by authority of the Minister for Family Services and are aligned with the Therapeutic Goods (Charges) Act 1989. These amendments, particularly the third incremental increase, are designed to gradually introduce higher charges over a four-year period, aiming to mitigate the immediate impact on the industry. This legislative update reflects a policy objective to ensure sustainable funding for the administration and regulation of therapeutic goods in Australia.
Scope and Application
The Therapeutic Goods (Charges) Regulations (Amendment) 1995 No. 193, issued under the authority of the Minister for Family Services, amends the Therapeutic Goods (Charges) Regulations to adjust the annual fees associated with the registration and listing of therapeutic goods in the Australian Register of Therapeutic Goods, as well as the annual charges for maintaining manufacturing licenses for these goods. The Act applies to entities and individuals engaged in the manufacture, registration, and listing of therapeutic goods within Australia, including pharmaceutical companies, medical device manufacturers, and other relevant industries. The regulatory framework extends across the entire Commonwealth, ensuring a uniform application of the amended charges nationwide. The amendments are designed to phase in higher fees over four years, aiming to align with the Government’s decision for the Therapeutic Goods Administration to operate on a fifty per cent cost recovery basis. The Regulations introduce incremental increases to the fees, with specific adjustments for various categories of therapeutic goods and manufacturing licenses, while also providing exemptions for goods produced solely for export.
Key Provisions
The Therapeutic Goods (Charges) Regulations (Amendment) 1995 No. 193 primarily introduces amendments to the annual charges for registration and listing of therapeutic goods in the Australian Register of Therapeutic Goods (the Register) and the annual charges for maintaining licenses to manufacture therapeutic goods. These amendments are outlined in Regulation 2 of the Regulations, which specifically amends the Therapeutic Goods (Charges) Regulations. Regulation 1 establishes the commencement date of these amendments as 1 July 1995. Under the new provisions, the annual charge for registration of prescription drugs in the Register increases from $440 to $500, as stipulated in subregulation 3.1. Similarly, the charge for registration of all other therapeutic goods rises from $250 to $300, as detailed in subregulation 3.2. The charge for listing therapeutic goods in the Register increases from $110 to $150, according to subregulation 3.3. However, therapeutic goods listed in the Register that are produced for export only will not be subject to this annual listing charge. The amendments also affect the annual licensing charges for various categories of manufacturing licenses, with increases ranging from $400 to $800, as set out in subregulations 3.4 to 3.11.
The obligations imposed by these Regulations require industry stakeholders to adjust to the increased charges for maintaining their registrations, listings, and licenses. The amendments necessitate that registrants and licensees ensure timely payment of the new charges to avoid any disruptions in their operations. The Therapeutic Goods Administration (TGA) is tasked with ensuring that these changes are implemented and enforced effectively. Industry stakeholders must stay informed about the new charges and plan their budgets accordingly to comply with the updated fee structure.
Breaching the provisions of these Regulations, particularly by failing to pay the amended annual charges by the due date, may result in penalties and consequences. While the specific penalties are not detailed in the Explanatory Statement, it is reasonable to infer that non-compliance could lead to administrative actions such as fines, suspension of licenses, or other enforcement measures taken by the TGA. The exact penalties and consequences would depend on the TGA's interpretation and enforcement of the charges stipulated in the Regulations.