Document ID: chunk:federal_register_of_legislation:C2010A00126:clause:1_12
Version: federal_register_of_legislation:C2010A00126
Segment Type: clause
Provision Reference: sch 1 cl 12
Character Range: 4945–6567

12  Subsection 99ACD(6)
Repeal the subsection, substitute:

Adjustment for prior price reductions to component drugs
 (6) If, on a day before the determination day:
 (a) one or more of the listed component drugs (the component) contained in the drug in the existing item had been subject to one of the following (the prior price reduction of the component):
 (i) a 12.5% price reduction;
 (ii) a 16% price reduction; and
 (b) because of the prior price reduction of the component, the approved price to pharmacists of the existing brand of the existing item was reduced;
then the reduction referred to in subsection (5) is to be adjusted to reflect:
 (c) the percentage (the flowed‑on percentage) of the prior price reduction of the component that was taken into account in working out the amount of the reduction to the approved price to pharmacists of the existing brand of the existing item; and
 (d) the quantity of the component contained in the drug in the existing item.
 (6A) For the purposes of subsection (6), if:
 (a) the prior price reduction of the component was a 12.5% price reduction; and
 (b) the flowed‑on percentage was 100%;
then the reduction referred to in subsection (5) is to be adjusted so that there is no further reduction in relation to the component.
 (6B) For the purposes of subsection (6), if:
 (a) the prior price reduction of the component was a 12.5% price reduction; and
 (b) the flowed‑on percentage was less than 100%;
then the reduction referred to in subsection (5) is to be adjusted so that the percentage worked out as follows is taken into account in relation to the component: