Pharmaceutical Benefits Scheme – Clarity on Price Disclosure Reduction Thresholds and Designated Brands

Page last updated: 1 October 2024

The National Health Amendment (Technical Changes to Averaging Price Disclosure Threshold and Other Matters) Act 2024 (Cth) (the 2024 Amendment Act) has passed Parliament. The 2024 Amendment Act clarifies provisions which were introduced through the National Health Amendment (Enhancing the Pharmaceutical Benefits Scheme) Act 2021 to provide improved pricing arrangements and more reliable supply for older and low-cost medicines that can be more susceptible to medicine shortages. The 2024 Amendment Act clarifies the operation of the 12.5% average unadjusted price reduction test and the timing of when a brand becomes a designated brand. It includes technical amendments only, which have been made for the avoidance of doubt and do not alter the operation of the provisions which have been in effect since 1 July 2022. A Fact Sheet with diagrams describing the changes and operation of the relevant provisions can be found under the heading “Designated brands” on the Price Disclosure webpage and on the Designated Brands webpage