Commonwealth Consolidated Acts Commonwealth Consolidated ActsWhen this section applies
(1) Subject to subsections (2) and (3), this section applies to a brand of a pharmaceutical item if, immediately before the start of 1 October 2022:
(a) the drug in the brand of the pharmaceutical item was on F2; and
(b) the brand of the pharmaceutical item had an approved ex - manufacturer price that is less than $3.50.
(2) The Minister may, by writing, determine that this section does not apply in relation to all brands of a specified pharmaceutical item.
(3) This section does not apply to a brand of a pharmaceutical item if:
(a) the drug in the pharmaceutical item is included in Schedule 2 to the current Poisons Standard (within the meaning of the Therapeutic Goods Act 1989 and as in force from time to time) by reference to a quantity or amount of the drug; and
(b) that quantity or amount of the drug is equal to or greater than the total quantity or amount of the drug contained in the quantity or number of units of the brand of the pharmaceutical item in any pack quantity of the brand of the pharmaceutical item.
Price increases
(4) Subject to subsection (7), if, on the day before 1 October 2022, the brand of the pharmaceutical item had an approved ex - manufacturer price of $2 or less, the approved ex - manufacturer price is taken to be increased to $2.50 at the start of 1 October 2022.
(5) Subject to subsection (7), if, on the day before 1 October 2022, the brand of the pharmaceutical item had an approved ex - manufacturer price of more than $2 but not more than $3, the approved ex - manufacturer price is taken to be increased by 50 cents at the start of 1 October 2022.
(6) Subject to subsection (7), if, on the day before 1 October 2022, the brand of the pharmaceutical item had an approved ex - manufacturer price of more than $3 but less than $3.50, the approved ex - manufacturer price is taken to be increased to $3.50 at the start of 1 October 2022.
Apportioning if pricing quantity changes
(7) If the pricing quantity of the brand of the pharmaceutical item on the day before 1 October 2022 is more than the pricing quantity of the brand of the pharmaceutical item on 1 October 2022, then the approved ex - manufacturer price of the brand of the pharmaceutical item on 1 October 2022 is taken to be the amount worked out using the following formula:
where:
"AEMP1" means the amount the approved ex - manufacturer price of the brand of the pharmaceutical item would be on 1 October 2022 if the pricing quantity had not changed.
"PQ1" means the pricing quantity of the brand of the pharmaceutical item on the day before 1 October 2022.
"PQ2" means the pricing quantity of the brand of the pharmaceutical item on 1 October 2022.
Section does not limit Minister's powers
(8) This section does not limit the Minister's powers, on or after 1 October 2022, to make:
(a) price agreements; or
(b) determinations under section 85B;
in relation to the brand of the pharmaceutical item.