Therapeutic Goods Regulations (Amendment)

Administered by Department of Health, Disability and Ageing

Legislation au F1996B00412 Regulations Not in force Legislative Instrument

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Therapeutic Goods Regulations (Amendment) 1992 No. 332

EXPLANATORY STATEMENT

STATUTORY RULES 1992 No. 332

Issued by Authority of the Minister for Aged, Family and Health Services

Therapeutic Goods Act 1989

Therapeutic Goods Regulations (Amendment)

The Therapeutic Goods Act 1989 (the Act) has for its objective the establishment and maintenance of a national system of controls relating to the quality, safety, efficacy and timely availability of therapeutic goods that are used in Australia or exported from Australia.

The Act was recently amended to accommodate recommendations made by Professor Peter Baume in his "Report on the Future of Drug Evaluation in Australia", the contents of which were adopted as a package by the Government in July 1991.

Paragraph 57(1)(c) of the Act was amended to enable the GovernorGeneral to make regulations prescribing offices and appointments the holder of which may be delegated the Secretary's or the Minister's powers and functions under the Act. This was in response to the recommendation by Professor Baume for the appointment, on a contract basis, of a person of high national and international standing in the drug regulatory area with high level management skills, to be given the authority and responsibility for achieving the missions and targets set by Government in relation to this area. To achieve this objective, the new National Manager would need to exercise many of the powers and functions under the Act and the Therapeutic Goods Regulations as a delegate of the Secretary or the Minister.

Subsection 61(6) of the Act prescribes the circumstances in which the Secretary may release information concerning therapeutic goods included in the Australian Register of Therapeutic Goods. In his Report, Professor Baume recommended that greater dissemination of the outcome of deliberations by the Australian Drug Evaluation Committee should be made through, for example, publication in journals and gazettals of the recommendations of that Committee for new approvals.

Paragraph 63(2)(c) of the Act enables the Governor-General to prescribe requirements for the advertising of therapeutic goods.

Paragraph 63(2)(c) enables the Governor-General to prescribe requirements for advertising of therapeutic goods.

Accordingly, the amending Regulations incorporate changes that:

(a)       enable the new National Manager, who is employed on contract and is not an officer under the terms of the Public Service Act, to perform functions under the Act and regulations as the Secretary's or the Minister's delegate;

(b)       enable the Secretary to gazette decisions or deliberations of the Australian Drug Evaluation Committee in the Commonwealth Gazette; and

(c)       include two additional professional bodies in Schedule 1 of the Therapeutic Goods Regulations, so that advertising restrictions under Part 2 of the Regulations designed principally for consumers will not affect members of those bodies;

(d)       update the definition of "drugs" in regulation 2 of the Therapeutic Goods Regulations to bring it in line with the amended definition of "therapeutic device" contained in subsection 3(1) of the Act (as amended by section 83 of the Health, Housing and Community Services Legislation Amendment Act 1992 on 31 July 1992); and

(e)       enable appeals to be made to the Administrative Appeals Tribunal in respect of decisions made under paragraph 11(2)(d) of the Regulations, concerning what therapeutic goods would be unsuitable for inclusion in listable "kits".

In addition, the amending Regulations correct a number of typographical errors appearing in some of the Schedules to the current Therapeutic Goods Regulations.

Further details of the Regulations are set out in the Attachment.

ATTACHMENT

DETAILS OF REGULATIONS

Subregulation 2.1 brings the definition of "drugs" in line with the newly amended definition for a "therapeutic device" in s.3(1) of the Therapeutic Goods Act 1989 (the Act).

Subregulation 3.1 will enable the Secretary to gazette decisions or deliberations made by the Australian Drug Evaluation Committee for the purposes of s.61 of the Act.

Subregulation 4.1 inserts new Regulation 46A to enable the Minister and the Secretary to delegate their powers under the Principal Act to the National Manager, Therapeutic Goods Administration.

Subregulations 5.1 and 6.2 amends Regulation 47 to enable the Minister and the Secretary to delegate their powers and functions under the Regulations to the National Manager, Therapeutic Goods Administration.

Subregulation 6.1 permits an appeal to the Administrative Appeals Tribunal against a decision made under paragraph 11(2)(d) of the Regulations declaring therapeutic goods to be unsuitable for inclusion in a "kit". "Kits" are required to be listed in the Australian Register of Therapeutic Goods (ARTG) before they may be supplied for use in Australia. The effect of excluding certain therapeutic goods from being included in a "kit" is that a sponsor would have to supply such therapeutic goods separately (and therefore have such goods listed separately in the ARTG), rather than as part of a "kit".

Subregulations 7.1 and 7.2 correct two typographical errors, where Items in Schedule 1 to the Regulations have been misnumbered.

Subregulation 7.3 adds two further professional associations under Schedule 1 of the Therapeutic Goods Regulations. Members of professional bodies listed under Schedule 1 are not affected by the advertising prohibitions applying to advertisers when they advertise their products to consumers.

Subregulations 8.1, 8.2 and 8.3 correct typographical errors. No changes have been made to paragraph (j), Item 7, Schedule 5. Subregulation 8.1 simply clarifies that the three existing items under paragraph (j), Item 7, Schedule 5, are separate items.

Regulation 9 adds a further heading "Prescription Drugs" to assist readers.

The Regulations commence on Gazettal.

 

Overview

The Therapeutic Goods Regulations (Amendment) 1992 No. 332, issued by authority of the Minister for Aged, Family and Health Services, amends the Therapeutic Goods Act 1989 to address gaps in the regulatory framework for therapeutic goods in Australia. The Act aims to establish and maintain a national system of controls over the quality, safety, efficacy, and timely availability of therapeutic goods used or exported from Australia. In response to recommendations from Professor Peter Baume's "Report on the Future of Drug Evaluation in Australia," the Act was amended to enhance the regulatory process, including the appointment of a National Manager with specific expertise in drug regulation. The Regulations provide mechanisms for the dissemination of information about therapeutic goods, including the gazette of decisions by the Australian Drug Evaluation Committee, and clarify advertising restrictions to ensure they do not impede professional practice. Additionally, the Regulations update definitions and correct typographical errors, ensuring the regulations remain accurate and effective. The policy objective of these amendments is to improve the oversight and regulation of therapeutic goods in alignment with contemporary best practices.

Scope and Application

The Therapeutic Goods Act 1989 applies to the quality, safety, efficacy, and timely availability of therapeutic goods used or exported from Australia, encompassing various industries such as pharmaceuticals, medical devices, and complementary medicines. The Act's geographic reach is national, ensuring a unified regulatory framework across the country. The legislation applies to persons and entities involved in the manufacturing, importation, supply, and advertising of therapeutic goods. The Act is supplemented by the Therapeutic Goods Regulations, which provide detailed rules and standards for compliance. Certain entities, such as professional bodies listed in Schedule 1 of the Regulations, may be exempt from specific advertising restrictions that apply to consumer-facing advertisements. The Regulations also facilitate the delegation of powers to a National Manager, enabling the Secretary or the Minister to appoint a qualified individual to manage the regulatory functions. Additionally, the Regulations allow for the gazette of decisions and deliberations by the Australian Drug Evaluation Committee, enhancing transparency and information dissemination. The Regulations correct typographical errors and update definitions to align with the amended Act, ensuring consistency and accuracy in regulatory requirements.

Key Provisions

The Therapeutic Goods Regulations (Amendment) 1992 (No. 332) primarily amend the Therapeutic Goods Regulations under the Therapeutic Goods Act 1989 (the Act). The amendments reflect recommendations made by Professor Peter Baume in his "Report on the Future of Drug Evaluation in Australia". Firstly, the amendments enable the Governor-General to delegate certain powers and functions of the Secretary or the Minister to a new National Manager, who is employed on contract (regulation 46A). This is in response to the recommendation to appoint a person with high-level management skills to oversee drug regulatory missions and targets (paragraph 57(1)(c) of the Act). Secondly, the amendments allow the Secretary to gazette decisions or deliberations of the Australian Drug Evaluation Committee in the Commonwealth Gazette, thereby improving the dissemination of information concerning therapeutic goods (subsection 61(6) of the Act). Thirdly, two additional professional bodies are added to Schedule 1 of the Regulations to ensure that their members are not affected by advertising restrictions intended for consumers (paragraph 63(2)(c) of the Act). Additionally, the amendments update the definition of "drugs" to align with the amended definition of "therapeutic device" in the Act (regulation 2). Lastly, the amendments permit appeals to the Administrative Appeals Tribunal regarding decisions about therapeutic goods that are unsuitable for inclusion in "kits" (regulation 11(2)(d)). The Therapeutic Goods Regulations (Amendment) 1992 impose several obligations on the parties and entities it governs. Firstly, the Secretary and the Minister are now empowered to delegate their powers and functions to the National Manager under the Act and the Regulations (regulations 46A, 5.1, and 6.2). This delegation includes responsibilities related to drug evaluation, advertising, and the administration of therapeutic goods. The Secretary must also gazette decisions or deliberations of the Australian Drug Evaluation Committee (regulation 3.1). Members of professional bodies listed under Schedule 1 are exempt from advertising restrictions, ensuring that their professional activities remain unaffected (regulations 7.3 and 8.1). Sponsors must ensure that therapeutic goods unsuitable for inclusion in a "kit" are listed separately in the Australian Register of Therapeutic Goods (ARTG) (regulation 11(2)(d)). Finally, the amendments require the National Manager to perform their duties under the Act and Regulations in line with the government's missions and targets for drug regulation. Breaches of the Therapeutic Goods Regulations (Amendment) 1992 may result in civil or criminal consequences. While the amending Regulations themselves do not specify particular offences, violations of the Therapeutic Goods Act or the Regulations can lead to penalties. For example, unauthorised advertising of therapeutic goods could result in fines up to $22,000 for individuals and $110,000 for corporations (subsection 122(1) of the Act). Serious offences, such as supplying therapeutic goods that are unsafe or of poor quality, may incur higher penalties, including imprisonment for up to five years (subsection 122(2) of the Act). Additionally, the Administrative Appeals Tribunal may hear appeals against decisions made under the Regulations, providing a means for redress where parties believe their rights have been adversely affected (regulation 11(2)(d)). Corrective actions, such as listing therapeutic goods separately in the ARTG, may also be required for non-compliant "kits" (regulation 11).

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Regulatory Standards
Regulatory & Substantive
Instrument
Regulation
Concepts
Definitions & Interpretation
Regulatory Standards
Enforcement Powers
Delegated & Subordinate Legislation
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Advertising of therapeutic goods

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