Document ID: chunk:federal_register_of_legislation:C2022C00026:clause:1_36
Version: federal_register_of_legislation:C2022C00026
Segment Type: clause
Provision Reference: sch 1 cl 36
Character Range: 27633–29510

36  After subsection 99ACF(2)
Insert:

Reduction by dollar amounts
 (2AA) Subject to section 99ACG, if:
 (a) section 99ACH applies to a listed brand (the related brand) of a pharmaceutical item (the related item) on a day specified in the section (the reduction day); and
 (b) on the day before the reduction day:
 (i) the approved ex‑manufacturer price of the related brand of the related item on 1 January 2016; or
 (ii) if subparagraph (i) does not apply—the original approved ex‑manufacturer price of the related brand of the related item; or
 (iii) if applicable, one or more claimed prices of the related brand of the related item on 1 January 2016; or
 (iv) if subparagraph (iii) does not apply—if applicable, one or more claimed prices, of the related brand of the related item;
  have, by virtue of previous price reductions, been reduced by:
 (v) 15% or less, subsection (2AB) applies; and
 (vi) more than 15% but less than 40%, subsection (2AC) applies.
 (2AB) Subject to subsections (2A) and (3AA), the approved ex‑manufacturer price, or (if applicable) each claimed price, for the related brand of the related item that comes into force on the reduction day must not exceed the approved ex‑manufacturer price, or each of the claimed prices, of the related brand of the related item, on the day before the reduction day, reduced by 25%.
 (2AC) Subject to subsections (2A) and (3AB), the approved ex‑manufacturer price, or (if applicable) each claimed price, for the related brand of the related item that comes into force on the reduction day must not exceed:
 (a) 60% of the approved ex‑manufacturer price, or each of the claimed prices, of the related brand of the related item on 1 January 2016; or
 (b) if paragraph (a) does not apply—60% of the original approved ex‑manufacturer price, or each of the claimed prices, of the related brand of the related item.