Document ID: chunk:federal_register_of_legislation:C2025C00090:section:99adhb:p1
Version: federal_register_of_legislation:C2025C00090
Segment Type: section
Provision Reference: s 99ADHB (pt 1/2)
Character Range: 401544–404294

99ADHB  Flow on price reductions for brands of combination items

When section applies
 (1) This section applies if:
 (a) there is an approved ex‑manufacturer price (the existing price) in force for a brand (the existing brand) of a combination item; and
 (b) the combination item is not an exempt item; and
 (c) the combination item has a drug on F2; and
 (d) a brand of a pharmaceutical item (the non‑combination item) that is not a combination item has a drug (the common drug) that is in the combination item; and
 (e) the combination item has the same manner of administration as the non‑combination item; and
 (f) on a day (the reduction day) after the day the existing price came into force for the existing brand of the combination item, section 99ADH applied to the brand of the non‑combination item.
Note: The meaning of the same manner of administration is modified for the purposes of this section by subsection (7).

Price reduction
 (2) Subject to subsections (6) and (6B), on the reduction day, the approved ex‑manufacturer price of the existing 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 subsection (6), if the approved ex‑manufacturer price of the existing brand of the combination item is reduced under subsection (2), then, on the reduction day, the claimed price (if any) of the existing 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 existing brand of the combination item is reduced under subsection (2).

Ministerial discretion not to apply, or to reduce, statutory price reduction
 (6) In relation to the existing 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.
 (6A) In making a determination under subsection (6):
 (a) the Minister must take into account what the approved ex‑manufacturer price, and (if applicable) the claimed price, of the existing brand of the combination item would otherwise be under this section in relation to the particular reduction day if a