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Anniversary Price Reductions

Page last updated: 14 September 2023

Drugs listed on F1 are subject to statutory price reductions (SPR) under Division 3A of Part VII of the National Health Act 1953 (the Act) on the fifth, tenth and fifteenth anniversary of the date that the drug was listed on the Pharmaceutical Benefits Scheme (PBS). The percentage reductions applied on the different anniversaries are set out in the following table.

Anniversary Price Reduction Table

Anniversary

Percentage reduction

Section/s of the Act

5 Year

5%

99ACHB

10 Year

5%

99ACJA

15 Year

26.1%

99ACKA

30% (on 1 April 2027)

99ACKB

1.48%

99ACP

Application of Anniversary Price Reductions

Once an F1 drug has been identified as being listed on the PBS for five, ten or fifteen years, the applicable price reduction will apply to the approved ex-manufacturer price (AEMP) for all PBS brands of pharmaceutical items containing the F1 drug, including all manners of administration (MoA). Even if there are new or amended indications or items for the F1 drug that listed recently, the anniversary SPR will apply because it is based on the date the drug became PBS listed.

All SPRs are capped at 60 per cent off (or 40 per cent of) the listed brand's AEMP on 1 January 2016 or the AEMP on the date of listing (if listed after 1 January 2016).

Combination items that contain a component item that is subject to an anniversary SPR will be subject to a flow-on price reduction on the same date. More information about flow-on price reductions for combination items can be found on the Combination Flow on webpage.

Anniversary SPRs are applied by force of the Act so no new price agreement (PB11a or HPP submission) is required. There are no ‘exempt item’ exemptions for anniversary SPRs.

Ministerial Discretion

The Minister for Health and Aged Care has discretion under section 99ACF of the Act to reduce or not apply an anniversary SPR. More information about requesting Ministerial Discretion can be found on the Ministerial Discretion webpage.

Key Dates

Anniversary price reductions are applied on 1 April every year. The schedule of anniversary reduction days can be found in the tables below.

Five Year Anniversary

Date Drug Listed on PBS

5 Year Anniversary Reduction Day

Between 1 May 2018 and 1 April 2019

1 April 2024

Between 1 May 2019 and 1 April 2020

1 April 2025

Between 1 May 2020 and 1 April 2021

1 April 2026

Between 1 May 2021 and 1 April 2022

1 April 2027

Ten Year Anniversary

Date Drug Listed on PBS

10 Year Anniversary Reduction Day

Between 1 May 2013 and 1 April 2014

1 April 2024

Between 1 May 2014 and 1 April 2015

1 April 2025

Between 1 May 2015 and 1 April 2016

1 April 2026

Between 1 May 2016 and 1 April 2017

1 April 2027

Fifteen Year Anniversary

Date Drug Listed on PBS

15 Year Anniversary Reduction Day

Between 1 May 2008 and 1 April 2009

1 April 2024

Between 1 May 2009 and 1 April 2010

1 April 2025

Between 1 May 2010 and 1 April 2011

1 April 2026

Between 1 May 2011 and 1 April 2012

1 April 2027

List of Affected Drugs

A list of medicines subject to anniversary SPRs, and the indicative 1 April AEMP, will be made available on the PBS website from 1 August in the previous year before the 1 April reduction date. From 1 April 2024 onwards, for medicines subject to a 15th anniversary reduction under section 99ACP (1.48% 15 year anniversary reductions), the reduction takes effect on the 15th anniversary day of the first listing of the drug.

Indicative AEMPs published on 1 August each year are subject to change, due to changes in PBS listings each month and the application of statutory provisions excluding the reductions. If a new pharmaceutical item lists after 1 August that contains a drug subject to an anniversary SPR, sponsors will be notified of the upcoming anniversary SPR.

1 April 2024 SPRs – List of Affected Drugs and Indicative pricing

April 2024 to 1 December 2024 section 99ACP SPRs (1.48% price reductions)

1 April 2023 SPRs – List of Affected Drugs and Indicative pricing

History of anniversary reduction pricing reforms

Anniversary SPRs to F1 medicines were first introduced as part of the 2015 Access and Sustainability package of changes to the PBS. This measure introduced a one-off 5% SPRs to drugs that had been listed on F1 for five years.

The amendments made by the National Health Amendment (Pharmaceutical Benefits-Budget and other Measures) Bill 2017 as part of the 2017 Medicines package:

  • introduced new anniversary price reductions to F1 medicines to be applied on the tenth (10%) and fifteenth (5%) anniversary of a drug being listed on the PBS;
  • extended the five year 5% anniversary reductions, which were to cease in 2020, out to 2022; and
  • introduced discretion that could be exercised by the Minister to reduce or not apply anniversary price reductions.

 A detailed explanation of these amendments to the Act can be found in the Explanatory Memorandum.

The amendments made by the National Health Amendment (Enhancing the Pharmaceutical Benefits Scheme) Act 2021 (Cth) introduced as part of the new Strategic Agreements with the medicines industry that commenced on 1 July 2022:

  • extended the five year 5% anniversary reductions, which were to cease in 2023, out to 2027;
  • reduced the tenth anniversary reduction from 10% to 5% which will apply until 2027; and
  • increased the fifteenth anniversary reduction from 5% to 26.1%, which will increase to 30% in 2027.

A detailed explanation of these amendments to the Act can be found in the Explanatory Memorandum.

Historical Anniversary Statutory Price Reductions files

Below are historical lists of indicative anniversary SPRs that applied prior to 1 July 2022. To confirm whether the anniversary SPR applied, please cross check the indicative lists below against the ex-manufacturer spreadsheet for the relevant reduction date.

5-year anniversary price reductions files:

1 April 2022 – Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2021 – Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2020 – Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2019 – Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2018 - Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2017 - Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2016 - Five Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

10-year anniversary price reductions files

1 April 2021 – Ten Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2020 – Ten Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 April 2019 – Ten Year Anniversary Price Reduction – List of Affected Drugs and indicative pricing

1 June 2018 – Ten Year Anniversary - List of Affected Drugs and indicative pricing

15-year anniversary price reductions files

1 April 2021 – Fifteen Year Anniversary - List of Affected Drugs and indicative pricing

1 April 2020 – Fifteen Year Anniversary - List of Affected Drugs and indicative pricing

1 April 2019 – Fifteen Year Anniversary - List of Affected Drugs and indicative pricing

1 June 2018 – Fifteen Year Anniversary - List of Affected Drugs and indicative pricing