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Insufficient Regulatory Impact Analysis - Seventh Community Pharmacy Agreement - the Department of Health

On 12 June 2020, the Minister for Health announced that a Seventh Community Pharmacy Agreement (7CPA), signed by the Commonwealth, the Pharmacy Guild of Australia and for the first time the Pharmaceutical Society of Australia, will commence on 1 July 2020, and be in place until 30 June 2025.

Given its potential to have major impacts on businesses and individuals and the community, a Regulation Impact Statement (RIS) was required for the 7CPA. However, a RIS was not finalised and assessed by the Office of Best Practice Regulation (OBPR) before the 7CPA was signed. Consequently, the OBPR has assessed the process and analysis for the 7CPA was insufficient to meet the Australian Government’s Regulatory Impact Analysis (RIA) requirements.

Consistent with the Government’s RIA requirements, a draft RIS provided to decision-makers earlier in the process, but not finalised or assessed by the OBPR before the 7CPA was signed, has been published. This draft RIS did not provide a level of detailed analysis commensurate with the complexity of the proposal and the potential impacts of the decision.   

The Department of Health has subsequently prepared an updated RIS which is published here for transparency purposes. The updated RIS has not been formally assessed by the OBPR.

The Department of Health must complete a post-implementation review of the impacts of the 7CPA within two years of the 7CPA’s implementation.

OIA assessment of the Impact Analysis
Insufficient
Adequate
Good practice
Exemplary