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PHARMACY OWNERSHIP IN TASMANIA
The following guidelines have been put together based on legislation and policy existing at 30 April, 2007. The Sections in brackets refer to appropriate sections of the Pharmacists Registration Act 2001 (as amended) (“the Act”).
Pharmacists and their advisors must ensure that they are familiar with and comply with the requirements of the Act. Section 12 of the Act empowers the Board to make by-laws consistent with the Act for the purpose of providing practical guidance and direction to pharmacists in the practice of pharmacy. These by-laws are referred to collectively as “the Pharmacy Code”. The Pharmacy Code requires that pharmacists registered in Tasmania comply with practice standards issued by the Pharmacy profession as well as identifying specific Board requirements in relation to pharmacy premises and practice. Pharmacists and their advisors should also ensure that they are familiar with and comply with the provisions of the Pharmacy Code.
Full copies of the Act and the Code are available here. A printable version (pdf) of these Guidelines may be downloaded here.Pharmacy businesses can be owned by:
1. An individual who is a pharmacist registered in Tasmania, provided that the pharmacist does not have an interest in any more than 4 pharmacy businesses (See sections 62(1) and 65 of the Act)
2. A partnership where all partners are registered pharmacists, provided that none of the pharmacists has an interest in any more than 4 pharmacy businesses (See sections 62(1) and 65 of the Act)
3. A body corporate where the controlling interest (i.e. more than 50% of the voting shares) is held by one or more registered pharmacists and all the other members of the body corporate are family members of the pharmacist(s). “Family members” are limited to the spouse, father, mother, son, daughter, grandson, granddaughter, brother or sister of the registered pharmacist(s) (See section 62(2) of the Act). “Spouse” includes any person who is in a significant relationship with the pharmacist, within the meaning of the Relationships Act 2003 (See section 62(2A) of the Act).A controlling interest in a body corporate which owns a pharmacy business may be held by a registered pharmacist as the trustee of a discretionary trust or a unit trust, provided that;
• the deed which establishes the trust specifies that all beneficiaries of the trust (or, in the case of a unit trust, the unitholders) must be the registered pharmacist or “family members” of the registered pharmacist as specified in Section 62(2) of the Act; and
• the Board is satisfied that the trustee of the trust exercises effective control over the voting rights which attach to the shares which make up the controlling interest.Effective control of the pharmacy business must be exercised by the registered pharmacist or pharmacists (See section 62(2)(e) of the Act). The Board takes the view that the effect of this requirement is that all directors of a body corporate which owns a pharmacy business must be registered pharmacists.
4. An individual or a body corporate as trustee of a discretionary trust, provided that;• the class of beneficiaries is limited to the registered pharmacist or “family members” of the registered pharmacist as specified in Section 62(2) of the Act; and
• the trustee is either an individual registered pharmacist or a body corporate which meets the above requirements (See section 62(2) of the Act).5. An individual or a body corporate as trustee of a unit trust, provided that;
• the deed which establishes the trust provides that all unit holders must be “family members” of the registered pharmacist as specified in Section 62(2) of the Act; and
• the trustee is either an individual registered pharmacist or a body corporate which meets the above requirements (See section 62(2) of the Act).An application for approval of the change of ownership of a pharmacy business must be lodged with the Pharmacy Board of Tasmania (Form PA1). The Australian Community Pharmacy Authority requires confirmation that the Pharmacy Board has approved the ownership change before it will issue an approval number.
If a pharmacy business is to be owned by a corporate body, an application for approval of the corporate body must be made to the Pharmacy Board.
The Board will require the following documentation:
(available for download below)
an Application Form completed in full and signed in front of a Commissioner for Declarations or JP (C1);
a Director’s Information Form for each Director (C2);
a Member’s Details Form for each member of the company (C3);
Statutory Declaration;
copy of the Company’s Constitution;
if the body corporate owns the pharmacy business in its capacity as the trustee of a trust, a copy of the stamped trust deed;
if any shares in the body corporate are held in trust, a copy of the stamped trust deed;
a cheque made out to the Pharmacy Board for $550.00 (incl GST) where there is no interest held on behalf of a trust OR $990.00(incl GST) where a discretionary trust holds an interest in the pharmacy;
an application for change of ownership if applicable (Form PA1).
All attached copies must be certified as a true copy of the original document by an appropriate person.
Additionally:
A Notification of Change of Directors (Form C4) must be lodged with the Board within 21 days of the date of any change in directors of the company.
A Notification of Change of Shareholders (Form C5) must be lodged with the Board within 21 days of any share transfer.
If the pharmacy is controlled by the trustee of a unit trust, a Notification of Change of Unitholders (Form T5) must be lodged with the Board within 21 days of any unit transfer.
On or before 30 September each year the Board will require lodgement with it of an Annual Declaration of a Corporate Provider (Form C6) and (if applicable) an Annual Declaration of a Trustee Provider (Form T1) and a fee of $165.00 (incl GST) per Declaration.
The Board recommends that applicants consult a solicitor or accountant in the formation of any company and/or trust which is to hold an interest in a pharmacy or a business carried on in a pharmacy.
Pharmacists should note that significant transaction costs (eg Duty, CGT and GST) may be payable on the transfer of a pharmacy business. The Board strongly recommends that pharmacists intending to transfer their business obtain legal and accounting advice with respect to the payment of transaction costs before proceeding with the transfer.Forms for download:
Application for Approval of a Corporate Provider or Trust (forms C1, C2, C3 & Statutory Declaration)
Registration of Pharmacy Premises
The Pharmacists Registration Act 2001 requires that all pharmacy business premises must be registered with the Pharmacy Board. The Act requires that the Board must not approve the application unless it is satisfied that the premises sought to be registered are suitable, or are being made suitable, to be used for the purposes of a pharmacy business (section 71E).
All new or relocated pharmacy premises must be inspected prior to being granted a registration certificate. A registration fee of $300 (inc GST) applies.
Pharmacy premises where renovations or alterations are to be carried out must also seek approval from the Board prior to commencing work. An inspection fee of $165 (inc GST) applies.
The procedure:1. Submit application for approval;
2. Board gives “in principle” approval;
3. Carry out alterations, construction;
4. When work is completed – conduct self inspection;
5. Submit “Advice of Completion” form;
6. Board inspection occurs;
7. Invoice for registration is issued;
8. Pay registration fee;
9. Registration certificate is issued;Pharmacy owners intending to undertake any alterations that affect the internal layout of the dispensary or areas where scheduled medicines are stored must apply for approval prior to commencement of work.
Forms for download: