This bill became law on Apr 11th, 2023.
Budget, tax & economy
Pharmacy companies approved to supply PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. medicines can now have that approval suspended or revoked when one of their directors is prosecuted, closing a gap that did not apply to sole pharmacists.
A gap in the law left PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments.-approved pharmacy companies harder to suspend or revoke when a director was charged with or convicted of a PBS-related offenceAn offence connected with supplying PBS medicines, which is the trigger for the suspension and revocation powers in this bill., creating a risk of further fraud. This bill closes that inconsistency by letting authorities suspend or revoke a company’s PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. approval when its director is prosecuted or found guilty.
Australia’s Pharmaceutical Benefits SchemeThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. had long relied on powers to suspend or revoke approvals when an individual approved pharmacistA pharmacist or pharmacy entity that has permission to supply PBS medicines under the Act. was charged with or convicted of a PBS-related offenceAn offence connected with supplying PBS medicines, which is the trigger for the suspension and revocation powers in this bill., but the government said a gap remained when the approval sat with a pharmacy company and the relevant person was one of its directors. In March 2023 the Albanese government introduced this bill to close that inconsistency and reduce the risk of further fraudulent PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. claims, and Parliament passed it quickly before it received Royal AssentThe final step that turns a passed bill into law; this bill became law after receiving it in April 2023. in April 2023.
No significant public case against the bill is recorded so far, with debate treating it mainly as a technical fix to stop pharmacist corporations escaping PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. fraud sanctions that already applied to individuals. Coalition speakers backed the bill and used their speeches mostly to attack the government's broader medicines policy, not to argue against this measure itself.
Hon Ged Kearney MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 11 Apr 2023
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
33 days
From introduction to the latest recorded parliamentary step
Meaning
Pharmacy companies approved to supply PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. medicines can now have that approval suspended or revoked when one of their directors is prosecuted, closing a gap that did not apply to sole pharmacists.
A pharmacy company can also lose, or keep losing, its PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. approval if a director is convicted of a PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. fraud-related offence or is found guilty without a formal conviction being recorded.
A pharmacy company is treated as cleared for these PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. approval rules once a director is no longer disqualified because they were acquitted, had the charge withdrawn, or the matter was otherwise resolved.
The new rules apply from commencement to people who are directors now or were directors before, so the change is not limited to future appointments.
This Bill addresses a regulatory inconsistency within the Act to ensure that an approval to supply PBS medicines can be suspended or revoked regardless of whether the approval is held by an individual or under a company structure. It ensures that the Secretary has the power under subsection 133(1) of the Act to suspend an approved pharmacist corporation’s approval to supply pharmaceutical benefits if the director of the approved pharmacist corporation is charged with a PBS related offence (i.e. an offence arising out of or in connection with the supply of pharmaceutical benefits under Part VII of the Act).National Health Amendment (Effect of Prosecution—Approved Pharmacist Corporations) explanatory memorandum
The Bill also ensures that the Minister has the power under subsection 133(2) of the Act to suspend, further suspend or revoke an approved pharmacist corporation’s approval to supply pharmaceutical benefits if the director of the approved pharmacist corporation is convicted of a PBS related offence (or if the charge is proved but does not result in a conviction and the court discharges the person without proceeding to conviction).National Health Amendment (Effect of Prosecution—Approved Pharmacist Corporations) explanatory memorandum
New paragraph 133(6A)(c) provides that if a director of an approved pharmacist corporation ceases to be an ineligible director (as newly defined in subsection 133(7) and discussed in item 6 below), the approved pharmacist corporation will be treated as having been acquitted of the PBS related offence for the purposes of section 133 of the Act, provided that no other director is an ineligible director at that time. This provision ensures that no action can be taken against an approved pharmacist corporation under subsection 133(1) or subsection 133(2) of the Act if the director has been acquitted of a PBS related offence or has had the charge against them withdrawn or disposed of.National Health Amendment (Effect of Prosecution—Approved Pharmacist Corporations) explanatory memorandum
Item 7 is an application provision which states that new subsection 133(6A) of the Act applies on and or after the commencement of this item in relation to a person who is or was a director of an approved pharmacist corporation.National Health Amendment (Effect of Prosecution—Approved Pharmacist Corporations) explanatory memorandum
Context
Australia’s Pharmaceutical Benefits SchemeThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. had long relied on powers to suspend or revoke approvals when an individual approved pharmacistA pharmacist or pharmacy entity that has permission to supply PBS medicines under the Act. was charged with or convicted of a PBS-related offenceAn offence connected with supplying PBS medicines, which is the trigger for the suspension and revocation powers in this bill., but the government said a gap remained when the approval sat with a pharmacy company and the relevant person was one of its directors. In March 2023 the Albanese government introduced this bill to close that inconsistency and reduce the risk of further fraudulent PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. claims, and Parliament passed it quickly before it received Royal AssentThe final step that turns a passed bill into law; this bill became law after receiving it in April 2023. in April 2023.
Government introduces bill to close a PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. company loophole
The bill was introduced with the government saying existing PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. protections did not work effectively when an approved pharmacy operated through a corporation and a director was prosecuted for a PBS-related offenceAn offence connected with supplying PBS medicines, which is the trigger for the suspension and revocation powers in this bill..
Hansard ↗Pharmacy company loophole moves toward closure
During House debate and second reading approval, speakers said the change would let authorities stop a company from continuing to receive PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. payments through a director who had been charged with or convicted of misconduct.
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, completing Parliament’s response to the gap between sole-pharmacist and corporate-pharmacy PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. approval rules.
Parliamentary timeline ↗Royal AssentThe final step that turns a passed bill into law; this bill became law after receiving it in April 2023. turns the bill into law
Royal AssentThe final step that turns a passed bill into law; this bill became law after receiving it in April 2023. made the measure law, allowing suspension or revocation powers to apply to approved pharmacistA pharmacist or pharmacy entity that has permission to supply PBS medicines under the Act. corporations when a director is prosecuted or found guilty of a PBS-related offenceAn offence connected with supplying PBS medicines, which is the trigger for the suspension and revocation powers in this bill..
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A ministerThe health minister, who can further suspend or revoke an approval when a director is convicted or the charge is proved without a conviction. or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A ministerThe health minister, who can further suspend or revoke an approval when a director is convicted or the charge is proved without a conviction. or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a passed bill into law; this bill became law after receiving it in April 2023., turning the bill into an Act.
Key criticism
No significant public case against the bill is recorded so far, with debate treating it mainly as a technical fix to stop pharmacist corporations escaping PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. fraud sanctions that already applied to individuals. Coalition speakers backed the bill and used their speeches mostly to attack the government's broader medicines policy, not to argue against this measure itself.
No party represented in the debate opposed the bill.
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Kearney supports the bill, saying it closes a loophole that let pharmacists prosecuted for PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. fraud keep operating through company structures.
Read in Hansard ↗Duniam says the coalition will support the bill because it strengthens compliance powers, protects the Pharmaceutical Benefits SchemeThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. from fraud, and helps keep affordable medicines available.
Read in Hansard ↗Ley says the opposition will support the bill because it strengthens protection of the Pharmaceutical Benefits SchemeThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. against fraud and helps preserve access to affordable medicines.
Read in Hansard ↗Mike Freelander supports the bill, saying it closes a loophole that let pharmacists operating through companies escape the PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. fraud sanctions that already applied to individual pharmacists.
Read in Hansard ↗All speeches by bloc
4 speakers · 5 contributions · 4 support
“As I've said, this bill strengthens the government's ability to improve compliance and reduce inappropriate practice by corporations, directors and indeed some pharmacists. I'm pleased to note that many industry stakeholders such as the Pharmacy Guild and the Pharmaceutical Society of Australia support this. It's another small step by the Albanese Labor government under health minister Mark Butler, improving access to care, making sure that the reputation of Australia's healthcare system remains one of the best in the world and making sure that people can continue to access 21st century health care in an economy that is under stress because of worldwide events.”Read the full speech in Hansard ↗
“This Bill introduces an amendment which will align with the original intent that the power to suspend or revoke the approval of a pharmacist who has been prosecuted for PBS fraud applies equally to all approvals. This is irrespective of whether the approval is held by an individual, or under a company structure.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Ged Kearney on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Kearney supports the bill, saying it closes a loophole that let pharmacists prosecuted for PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. fraud keep operating through company structures. She argues the change will strengthen protection of the PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. and help preserve access to affordable medicines.
“This bill introduces an amendment which will align with the original intent that the power to suspend or revoke the approval of a pharmacist who has been prosecuted for PBS fraud applies equally to all approvals. This is irrespective of whether the approval is held by an individual or under a company structure.”Read this contribution in Hansard ↗
Second reading speech
Kearney supports the bill, saying it will protect the integrity of the PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. by extending compliance powers to pharmacist corporations so approvals can be suspended or revoked when PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. offences occur. She argues this is needed to keep the scheme sustainable and to ensure the rules apply equally across ownership structures.
“The bill strengthens compliance powers, especially the ability to protect the PBS from abuse and inappropriate practice by pharmacists who are directors of bodies corporate. Currently, the discretionary power to suspend or revoke an approval to supply pharmaceutical benefits only applies to individual pharmacists. The amendment will extend the discretionary power to a pharmacist who is operating under a company structure and who has been charged with or convicted of a PBS related offence. This will ensure that the power applies equally to all approvals.”Read this contribution in Hansard ↗
“This bill strengthens compliance powers, especially the ability to protect the PBS from abuse and inappropriate practice by pharmacists who are directors of bodies corporate.”Read the full speech in Hansard ↗
4 speakers · 5 contributions · 4 support
“Once again, the coalition strongly supports this bill to support the sustainability and the operation of the PBS, which provides Australians with affordable access to potentially life-saving and life-changing medicines. However, we'll continue to ensure that we hold the Albanese Labor government to account on investing in and maintaining continued and improved access to affordable medicines, particularly in the midst of this cost-of-living crisis.”Read the full speech in Hansard ↗
“The coalition has always been a strong supporter of the PBS, which ensures Australians have affordable access to critical medicines, and we will support this bill to protect the sustainability and integrity of this important scheme.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Paul Scarr on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Scarr supports the bill, saying it closes a loophole that can let an approved pharmacist corporationA pharmacy company that has official approval to supply PBS medicines, so the bill can suspend or revoke that approval if a director is prosecuted or convicted. keep operating after a director has been sanctioned for PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. breaches. He uses the speech to argue for stronger protection of the PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. and to stress that most pharmacists act properly.
“The National Health Amendment (Effect of Prosecution—Approved Pharmacist Corporations) Bill 2023 essentially addresses a loophole in relation to the application of penalties and remedial action taken in the case where a pharmacy has engaged in action which has been inappropriate and in breach of the PBS.”Read this contribution in Hansard ↗
Second reading speech
Scarr says the opposition supports the bill because it sensibly closes a loophole that would let a pharmacy company keep supplying PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. medicines even after misconduct by a director. He uses the debate to argue the government should focus on core PBSThe federal scheme that helps Australians get subsidised medicines; this bill changes who can keep receiving its payments. administration and not let preventable mistakes hit patients.
“I'll just recap some of the more general points I was making yesterday, particularly for those listening to this debate for the first time. It should be noted that the opposition, the Liberal and National parties, are supporting the National Health Amendment (Effect of Prosecution—Approved Pharmacist Corporations) Bill 2023, for the obvious reason that it makes a lot of sense.”Read this contribution in Hansard ↗
“As I said, Australians are doing it tough at the moment, and rising prices are affecting all Australians. This bill does support the sustainability of the PBS. I'm glad that this medicine is continuing to be on the PBS. We need to continue to support the sustainability of the system. I will do that whenever I can, along with the coalition, with our strong track record on the sustainability and integrity of this scheme.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A ministerThe health minister, who can further suspend or revoke an approval when a director is convicted or the charge is proved without a conviction. or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A ministerThe health minister, who can further suspend or revoke an approval when a director is convicted or the charge is proved without a conviction. or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a passed bill into law; this bill became law after receiving it in April 2023., turning the bill into an Act.
