Document ID: chunk:federal_register_of_legislation:C2021A00139:clause:1_61
Version: federal_register_of_legislation:C2021A00139
Segment Type: clause
Provision Reference: sch 1 cl 61
Character Range: 20253–21493

61  After subsection 99ACF(1)
Insert:

Reduction cap
 (1A) If:
 (a) the approved ex‑manufacturer price of a listed brand of a pharmaceutical item is to be reduced under subsection (1) because of an item in the table in subsection (1); 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 pharmaceutical 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 pharmaceutical item;
the approved ex‑manufacturer price of the listed brand of the pharmaceutical item is taken to be reduced under subsection (1) because of that item to an amount equal to the capped price.
 (1B) If the approved ex‑manufacturer price mentioned in subparagraph (1A)(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.