Document ID: chunk:federal_register_of_legislation:C2021A00139:clause:1_33:p1
Version: federal_register_of_legislation:C2021A00139
Segment Type: clause
Provision Reference: sch 1 cl 33 (pt 1/2)
Character Range: 11733–14541

33  Subsections 99ACC(2) to (5)
Repeal the subsections, substitute:

Price reduction
 (2) Subject to subsections (5A), (5C) and (5E), on the reduction day, the approved ex‑manufacturer price of the single brand of the combination item is taken to be reduced in accordance with a method prescribed by the regulations.
 (3) Different methods may be prescribed by the regulations for different classes of combination items.
 (4) Subsection (3) does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
 (5) Subject to subsections (5A) and (5C), if the approved ex‑manufacturer price of the single brand of the combination item is reduced under subsection (2), then, on the reduction day, the claimed price (if any) of the single brand of the combination item is taken to be reduced by a percentage equal to the percentage by which the approved ex‑manufacturer price of the single brand of the combination item is reduced under subsection (2).

Reduction cap
 (5A) If:
 (a) the approved ex‑manufacturer price of the single brand of the combination item is to be reduced under subsection (2); and
 (b) apart from this subsection, the reduced approved ex‑manufacturer price would be less than the amount (the capped price) equal to:
 (i) 40% of the approved ex‑manufacturer price of a listed brand of the combination item on 1 January 2016; or
 (ii) if subparagraph (i) does not apply—40% of the original approved ex‑manufacturer price of the first listed brand of the combination item;
the approved ex‑manufacturer price of the single brand of the combination item is taken to be reduced under subsection (2) to an amount equal to the capped price.
 (5B) If the approved ex‑manufacturer price mentioned in subparagraph (5A)(b)(i) or (ii) is by reference to a different pricing quantity than the pricing quantity on the reduction day, the approved ex‑manufacturer price mentioned in that subparagraph is taken to be the amount that the approved ex‑manufacturer price would have been had the pricing quantity been the same as the pricing quantity on the reduction day.

Ministerial discretion not to apply, or to reduce, statutory price reduction
 (5C) In relation to the single brand of the combination item, the Minister may, by notifiable instrument, determine that:
 (a) the approved ex‑manufacturer price, and (if applicable) the claimed price, is not to be reduced under subsection (2) or (5), as the case requires, in relation to a particular reduction day; or
 (b) the approved ex‑manufacturer price, and (if applicable) the claimed price, is to be reduced by a lower percentage than would otherwise apply under subsection (2) or (5), as the case requires, in relation to a particular reduction day.
 (5D) In making a determination under subsection (5C):
 (a) the Minister must take into account