Information for pharmacy owners

The new Act establishes the Queensland Pharmacy Business Ownership Council as a statutory body to regulate pharmacy business ownership in Queensland. The Council must have a minimum of 5 members including at least one pharmacy business owner and one employee pharmacist.

On 1 September 2024, Governor in Council appointed ten members to the Council, on the Minister for Health, Mental Health and Ambulance Services and Minister for Women’s recommendation.

The Council members are:

• Cameron Foote (Chair) - pharmacy business owner, registered pharmacist, and member of the Interim Pharmacy Roundtable
• Inmaculada (Inma) Beaumont (Deputy Chair) - chartered certified accountant
• Emma Conway – registered pharmacist
• Amy Ford – pharmacy business owner and registered pharmacist
• Adam Rodger – pharmacy business owner and registered pharmacist
• Brett Simmonds – Chair of the Pharmacy Board of Australia and registered pharmacist
• (Adela) Ting Wei Tsang – registered pharmacist and law clerk
• Shana Valentine – registered pharmacist
• Fiona Watson – pharmacy business owner, registered pharmacist, and Chair of the Interim Pharmacy Roundtable
• Vassillis (Lakis) Zeniou – registered pharmacist.

Initially the Council will oversee the implementation of the new Act and support transition of regulatory functions from Queensland Health to the Council.

When the new Act commences in full, the Council will be responsible for deciding applications for pharmacy business ownership, and monitoring and enforcing compliance with the new Act.

The new Act is expected to come into force in full by late 2025.

The Queensland Government sought applications from suitably qualified persons from a wide range of professional backgrounds, including pharmacy business owners and employee pharmacists, to be a member of the inaugural Queensland Pharmacy Business Ownership Council.

Yes.

When the new Act commences, the Council must keep a register of licensed pharmacy businesses in Queensland.

The register must contain the business name for each licensed pharmacy business and the address of the licensed premises for the business. The register may also include information about pharmacy services provided by a licensed pharmacy business.

The Council will decide whether to make the register publicly available on the Council’s website.

The new Act gives the Council clear legislative powers when granting a pharmacy business licence or suspecting a licence holder of not complying with the new Act.

For example, within 30 days after receiving a licence application, the Council can ask an applicant to provide additional information to consider the application. If the applicant does not provide the information or document within 14 days (or as agreed with Council) the licence application is considered withdrawn.

The Council can also inspect the premises for the pharmacy business to confirm it is an authorised premises.

The Council has powers to suspend a licence if, for example, they reasonably suspect:

• the licence was granted because of materially incorrect, false or misleading information
• the holder of the licence contravened a condition of the licence
• the licenced premises are not authorised premises.

The Council has powers to cancel a licence if, for example, they reasonably suspect:

• the licence holder is not an eligible person to hold a licence
• the licence holder is not a fit and proper person to own a pharmacy business
• one of the material interest holders is not permitted to hold a material interest in the business.

There are significant penalties for not complying with the new Act. For example, it is an offence to own a business without a pharmacy business licence, to hold a material interest in a business if you are not permitted to, or to exceed the limit on the number of businesses a person can have an interest in. Each of these offences carry a maximum penalty of 200 penalty units.

Please email PBO_implementation@health.qld.gov.au.

Under the new Act, a person must not own a pharmacy business unless they hold a licence for the business. A business is a pharmacy business under the new Act if the business provides either or both:

• compounding of medicines for sale to members of the public
• dispensing, by or under the supervision of a practising pharmacist, of medicines to members of the public.

These are known as ‘core pharmacy services’ under the new Act. The new Act applies to an online pharmacy if the online pharmacy is providing core pharmacy services in Queensland.

All existing pharmacy business owners must apply for a licence under the new Act when the new Act commences. In addition, anyone wishing to open a new pharmacy business in the future will need to apply to the Council for a licence once the new Act commences.

The new Act provides that the following are not pharmacy businesses for the purpose of the new Act:

• a business carried on by the State at a public sector hospital
• a business carried on at a hospital that provides core pharmacy services only to patients at the hospital
• a business carried on by a veterinary surgeon at premises used by the surgeon in the practice of the surgeon’s profession

A business that compounds medicines for sale, or dispenses medicines, to members of the public solely in connection with the manufacture of animal food under a manufacturing licence under the Medicines and Poisons Act 2019.

Parts 3 and 4 of the new Act set out who is eligible to hold a pharmacy business licence and require pharmacy business owners to hold a licence. These parts of the Act are expected to commence by late 2025. This timing is subject to the implementation process and government approvals.

Most current owners will have to apply for a licence within one year from the date these parts of the new Act come into force. Owners will be able to apply for a licence at any time during this year.

The Council will take time to consider and decide each licence application on its merits. As long as a current owner has applied for a licence by the end of the one-year period, the owner will not commit an offence for failing to hold a licence during the period that Council is considering their application.

The example below shows the timeframe for the licensing provisions in the new Act, assuming it will start on 1 July 2025. However, a start date for the licensing provisions has not been set.

• 1 July 2025: licensing provisions in new Act commence
• 1 July 2025 - 30 June 2026: existing owners must apply for a licence (unless two-year transitional applies, for corporate shareholders and corporate beneficiaries).
• 1 July 2026: a person who owns a pharmacy business but has not submitted an application for a licence to Council will commit an offence under section 15 of the new Act.

Under the new Act, existing corporate owners who have corporate shareholders or corporate beneficiaries within a trust arrangement have two years in which to apply for a licence, in certain circumstances. This additional year allows time for existing owners to change their ownership structure so that it complies with the new Act.

The 2-year transitional period only applies to existing owners who meet the eligibility criteria in section 214(2) of the new Act. Based on Queensland Health’s records, only a small number of businesses will be eligible for the 2-year transitional period.

More information about this is set out in ‘What to do if your ownership structure includes corporate shareholders and/or corporate beneficiaries?

A single pharmacy business licence will be issued for each pharmacy business.  If there is more than one owner, all owners must apply jointly to the Council to obtain a licence.

More information about how to apply, will be made available closer to the date the new Act commences.

Application form

Applications must contain the information required in the approved form. Council will be responsible for publishing the approved forms for applications under the new Act. For an application for a pharmacy business licence, the application must include:

• the address of the premises at which the pharmacy business is, or is to be, carried on – a pharmacy business can only be carried on from one location
• if the applicant is a corporation—the name of each director and shareholder of the applicant
• if the applicant is, or is to be, an owner of the business as trustee of a trust—the name of each beneficiary of the trust
• the name of each person who, to the best of the applicant’s knowledge, holds a material interest in the business.

The approved form may ask for additional relevant information.

Fees

The application must be accompanied by the application fee. For information on fees, please see What fees will apply?.

Requests by the Council for more details

Within 30 days of receiving an application, the Council may request additional information from an applicant.

An applicant will have 14 days to respond with the requested information, unless the Council and the applicant agree to extend this timeframe.

The Council may ask to inspect the proposed premises for the pharmacy business. The person must make the premises available for inspection. A fee may apply where the Council inspects the premises.

Council will then make a decision on the application. Council may decide to:

• grant the application
• grant the application subject to conditions, or
• refuse to grant the application.

Joint applications

If two or more people applied for the licence jointly, the Council can decide to grant the licence to some but not all of the applicants.

Example

John and Sarah apply jointly for a licence. John is a pharmacist but Sarah is not an eligible person to own a pharmacy business. The Council may decide to grant the licence to John, but refuse to grant the licence to Sarah.

If the Council refuses to grant the licence to some or all of the people who applied, those people will have a right to seek review of the Council’s decision. An information notice must be given to each refused applicant.  An internal review must be conducted before any external review can occur.

Time limits for a decision on an application

There are no time limits imposed on the Council in terms of how long the Council has to make a decision about a pharmacy business licence. However, the Act makes clear that so long as an existing pharmacy business owner applies for a licence within the required period, the person can continue to operate their existing pharmacy business until the Council makes a decision on the licence application.

Under section 23 of the new Act, only an eligible person can apply to the Council for a pharmacy business licence.

Section 10 of the new Act sets out who an eligible person is for the purposes of the new Act:

• a practising pharmacist
• a corporation whose directors and shareholders are all practising pharmacists
• a corporation:
  • whose directors and shareholders are a combination of practising pharmacists and close adult relatives (spouses or adult children) of practising pharmacists, and
  • in which a majority of shares, and all voting shares, are held by practising pharmacists

• a friendly society that, on 29 April 2005, carried on a pharmacy business in Queensland or another State
• a friendly society that is an amalgamation of two or more friendly societies, where both friendly societies carried on businesses in Queensland or another State on 29 April 2005
• the Mater.

A practising pharmacist means a person who is registered under the Health Practitioner Regulation National Law to practise in the pharmacy profession with general registration. It does not include a non-practising pharmacist.

The Pharmacy Business Ownership Act 2001 (2001 Act) has been interpreted as permitting pharmacists with non-practising registration to own a pharmacy.

Section 10 of the new Act provides that only practising pharmacists are eligible to own a pharmacy. A practising pharmacist is a person who is registered under the Health Practitioner Regulation National Law to practise in the pharmacy profession with general registration.

If you are an owner who holds non-practising registration, you will need to take steps to ensure you comply with the new Act. Section 219 of the new Act gives existing non-practising pharmacist owners 2 years from the date the licensing provisions commence in which to ensure that all pharmacist owners have practising registration. This 2-year period only applies to a pharmacist owner who held non-practising registration immediately before the licensing provisions commence.

If you are a non-practising pharmacist who owns a pharmacy business, you should carefully consider how the new Act applies to your individual circumstances and seek legal advice if needed.

Example

The example below shows the timeframe for the licensing provisions in the new Act, assuming it will start on 1 July 2025. However, a start date for the licensing provisions has not been set.

• 1 July 2025: licensing provisions in new Act commence.
• 1 July 2025 - 30 June 2026: existing owners, including those with non-practising registration, must apply for a licence (unless two-year transitional applies).
• 1 July 2025 - 30 June 2027: Council may grant a licence even though the pharmacist owner has non-practising registration, provided the owner complies with all other parts of the Act.
• 1 July 2027: all pharmacist owners must hold practising registration.

A person will hold a material interest in a pharmacy business if they are:

• a shareholder of an owner of the business. (For example, the pharmacy business is owned by Smith Pty Ltd. Jane Smith is a shareholder of Smith Pty Ltd. Jane Smith holds a material interest in the business.)
• a beneficiary of a trust, where the owner of the business is a trustee of the trust. (For example, the pharmacy business is owned by the David Brown as trustee for the Brown Family Trust. John Brown is a beneficiary in the trust. John Brown holds a material interest in the business.
• not an owner but have another interest in the business that entitles them to receive consideration that varies according to the profits or takings of the business. (For example, the business is owned by Tim Jones. Sarah McDonald gives Tim Jones $500,000 to establish the business and Tim agrees to repay Sarah at a rate of 5% of the pharmacy’s profits. Sarah McDonald holds a material interest in the business.)

Under section 16 of the new Act, a person can only hold a material interest in a pharmacy business if they are:

• a practising pharmacist
• a close adult relative of a practising pharmacist who holds an interest in that particular pharmacy business. (For example, Bill Taylor owns the Brisbane Local Pharmacy. His wife, Penny Taylor, can hold a material interest in the Brisbane Local Pharmacy but cannot hold a material interest in another pharmacy that her husband has no interest in.)

A close adult relative means a spouse or child of the pharmacist who is an adult. An adult means an individual who is 18 years or more. A child who is under the age of 18 cannot hold a material interest in a pharmacy business.

The new Act makes clear that if a pharmacy business is owned on trust, all beneficiaries of the trust are material interest holders in the business.

The only people who can hold a material interest in a pharmacy business are:

• a practising pharmacist

or

• a close adult relative (spouse or adult child) of a practising pharmacist who owns an interest in that particular business.

Children under the age of 18, and other extended family members, cannot be beneficiaries of a trust. This includes beneficiaries for a discretionary trust or a unit trust.

Queensland Health does not currently monitor the beneficiaries of discretionary trusts.

Section 13 of the new Act makes clear that a person who is a beneficiary of a trust, where the owner of the business is a trustee, is a material interest holder in the business. This includes beneficiaries of discretionary trusts.

Section 16 of the new Act provides that the only people who can hold a material interest in a pharmacy business are:

• a practising pharmacist, or

• a close adult relative (spouse or adult child) of a practising pharmacist who owns in interest in that particular business.

If your ownership structure includes a discretionary trust, you will need to ensure that all beneficiaries of the trust comply with section 16 of the new Act, that is, they are pharmacists who hold practising registration, or they are close adult relatives of a practising pharmacist who owns an interest in the business.

Under section 218, beneficiaries of current owners with discretionary trusts are taken to be compliant with these requirements for 2 years from commencement. After this time, owners who have discretionary trusts will need to ensure that their beneficiaries meet these requirements. Any beneficiaries who are not practising pharmacists or close adult relatives will commit an offence under section 16 of the new Act, with a maximum penalty of 200 penalty units.

If your ownership structure includes a discretionary trust, you should carefully consider the provisions of the new Act, including the transitional provisions in section 218 of the new Act, and seek legal advice if needed.

Under section 10 of the new Act, a corporation is eligible to own a pharmacy if:

• all of the directors and shareholders of the corporation are practising pharmacists, and

• it is a corporation:
  • whose directors and shareholders are all a combination of practising pharmacists and close adult relatives of practising pharmacists, and
  • the majority of shares, and all voting shares, are held by practising pharmacists.

This means all the directors and shareholders of the corporate owner must be natural persons – they cannot be another corporation. The shareholder cannot hold the shares on trust for another person.

Some current owners may also hold their business on trust and have beneficiaries who are corporations. This is not permitted under the new Act because the interest of a beneficiary is a material interest. Only practising pharmacists and close adult relatives of practising pharmacists may hold a material interest. Material interest holders must therefore be natural persons.

Examples

Example 1 - Corporate shareholders

This arrangement is not permitted under the new Act. A corporation is only eligible to own a pharmacy under the new Act if all of its directors and shareholders are natural persons. In this case, one of the shareholders is Andrews Family Pty Ltd, a corporation.

Example 2 - Corporate beneficiaries of trusts

This arrangement is not permitted under the new Act. The beneficiary of the trust is a corporation, Xavier Pty Ltd. Under section 10 of the new Act, the beneficiary of the Young Family Trust will be a material interest holder in the business. Section 16 provides that only pharmacists and their close adult relatives are eligible to hold a material interest in a pharmacy business.

Applying for a licence

Most existing businesses will have one year  to apply for a licence.

A small number of existing businesses will have 2 years to apply.

Under section 216 of the new Act, corporate owners with corporate shareholders or corporate beneficiaries have two years from the date that parts 3 and 4 of the new Act commence in which to apply for a pharmacy business licence.

This 2-year transitional period only applies to corporations that meet the eligibility criteria in section 214 of the new Act.

The eligibility criteria are set out in full in section 214 and provide that a corporation is only eligible if immediately before the licensing provisions commenced:

• the corporation owned an existing pharmacy business, and

• the directors of the corporation were all:
  • practising pharmacists, or
  • close adult relatives, of practising pharmacists, who also held a material interest in the business immediately before commencement, and

• the shareholders of the corporation consisted of only:
  • practising pharmacists
  • close adult relatives of practising pharmacists
  • one or more corporations whose directors and shareholders were:
    • all practising pharmacists, or
    • a combination of practising pharmacists and close adult relatives, of practising pharmacists, who also held a material interest in the business immediately before commencement, and

• if the corporation owned the existing pharmacy as a trustee of a trust, the beneficiaries of the trust consisted of only the following:
  • practising pharmacists
  • close adult relatives of practising pharmacists
  • one or more corporations whose directors and shareholders were:
    • all practising pharmacists, or
    • a combination of practising pharmacists and close adult relatives, of practising pharmacists, who also held a material interest in the business immediately before commencement.

Example

The example below shows the timeframe for the licensing provisions in the new Act, assuming it will start on 1 July 2025. However, a start date for the licensing provisions has not been set.

• licensing provisions in the new Act begins on 1 July 2025.
• existing owners with corporate shareholders or corporate beneficiaries (see section 214 for eligibility) must apply for a licence, from 1 July 2025 to 30 June 2027.
• a person who owns a pharmacy business but has not applied for a licence to Council will commit an offence under section 15 of the new Act, from 1 July 2027.

If your ownership structure includes a corporation that has corporate shareholders, or a trust arrangement where one of the beneficiaries is a corporation, you should carefully consider the provisions of the new Act, including the transitional provisions in sections 214, 216 and 217 of the new Act, and seek legal advice if needed.

No. Where a corporation owns a pharmacy business, only a pharmacist or their close adult relative can hold shares in the corporation. The shareholder cannot hold the shares on trust for another person.

The 2001 Act has been interpreted as permitting pharmacists with non-practising registration to hold an interest in a pharmacy.

Section 16 of the new Act provides that only practising pharmacists are permitted to hold a material interest in a pharmacy. A practising pharmacist is a person who is registered under the Health Practitioner Regulation National Law to practise in the pharmacy profession with general registration.

If you have non-practising registration and hold an interest in a pharmacy, you will need to take steps to ensure you comply with the new Act. Section 219 of the new Act gives owners 2 years from the date the licensing provisions commence in which to ensure that all pharmacist material interest holders have practising registration. This 2-year period only applies to a person who held non-practising registration immediately before the licensing provisions commence. If you are a non-practising pharmacist who holds an interest in a pharmacy business, you should carefully consider how the new Act applies to your individual circumstances and seek legal advice if needed.

Example

The example below shows the timeframe for the licensing provisions in the new Act, assuming it will start on 1 July 2025. However, a start date for the licensing provisions has not been set.

• 1 July 2025: licensing provisions in new Act commence
• 1 July 2025 - 30 June 2026: existing owners must apply for a licence (unless 2-year transitional applies).
• 1 July 2025 - 30 June 2027: Council may grant a licence even though a material interest holder in the business has non-practising registration, provided the owner complies with all other parts of the Act.
• 1 July 2027: all pharmacist material interest holders must have practising registration.

Section 17 of the new Act provides that a person must not hold an interest in more than the following number of pharmacies at the same time:

• 5 pharmacies – if the person is a practising pharmacist, a corporation whose directors and shareholders are all practising pharmacists, or a corporation:
  • whose directors and shareholders are a combination of practising pharmacists and close adult relatives of practising pharmacists, and
  • in which a majority of shares, and all voting shares, are held by practising pharmacists
• 6 pharmacies if the person is:
  • a friendly society that, on 29 April 2005, carried on a pharmacy business in Queensland or another State
  • a friendly society that is an amalgamation of two or more friendly societies, where both friendly societies carried on businesses in Queensland or another State on 29 April 2005
  • the Mater.

An interest is defined to mean:

• an interest as an owner of the business, or

• a material interest in the business.

Example

Tom Roberts owns 5 pharmacies and is a shareholder in a company that owns another pharmacy. Tom has an interest in 6 pharmacies. This is not permitted under the new Act.

Example

Jennifer Jackson owns 2 pharmacies and is a shareholder of Pharmacy Business Pty Ltd. Pharmacy Business Pty Ltd owns another 3 pharmacies. Jennifer has an interest in 5 pharmacies. This is permitted under the new Act.

When reviewing an application for a pharmacy business licence, the Council must consider whether the applicant is a ‘fit and proper person’ to own a pharmacy business.

Section 72 of the new Act provides a list of criteria the Council must consider when determining if the person applying for a licence is a fit and proper person. These criteria are:

• whether the person, or a director or shareholder of the person, holds or has previously held a pharmacy business licence and, if so:
  • any conditions on the licence held or previously held
  • whether the licence is or has been suspended or cancelled
• whether the person, or a director or shareholder of the person, has contravened the Pharmacy Business Ownership Act 2024, the Health Practitioner Regulation National Law or the Medicines and Poisons Act 2019, regardless of whether they have been convicted of an offence for the contravention
• whether the person is a party to a contract, agreement or arrangement in relation to a licensed pharmacy business containing a provision to which section 22(3) of the new Act applies
• whether the person, or a director or shareholder of the person, has been convicted of an indictable offence
• if the person is an individual—whether the person is, or has been:
  • an insolvent under administration, or
  • disqualified from managing corporations under the Corporations Act
• if the person is a corporation—whether the person is, or has been:
  • placed into administration, receivership or liquidation, or
  • wound up or deregistered under the Corporation Act
• any condition, undertaking, suspension or cancellation that applies, or has applied, under the Health Practitioner Regulation Nation Law Act 2009 in relation to the person’s registration (or the registration of a director or shareholder of the person) under the national law to practise in the pharmacy profession with general registration
• another matter the council considers relevant in deciding whether the person is a fit and proper person to own a pharmacy business.

The Council can also obtain a criminal history report for any applicant, or any director or shareholder of an applicant to assist it in assessing whether an applicant for a pharmacy business licence is a fit and proper person.

Section 22 of the new Act deals with inappropriate third-party control of a pharmacy business. The Council can consider if the applicant for a licence is a party to a contract, agreement or arrangement that gives a third-party control that is prohibited under section 22 of the new Act and, if so, the Council may decide that the person is not a fit and proper person to hold a licence.

When deciding whether or not to grant a pharmacy business licence, the Council must consider if the premises for the pharmacy business are authorised premises. Section 11 of the new Act provides that premises are authorised premises if the premises:

• are not located in, or directly accessible from, a supermarket

and

• meet the standards prescribed by regulation (Premises Standard).

Under the new Act, the Premises Standard must be prescribed in a regulation made under the Act.

The Minister for Health must receive advice from the Council on the Premises Standard before it is prescribed in the Regulation.

The Premises Standard will be made available after the Council is established. It is expected the Premises Standard will be prescribed in regulation in 2025.

Under the new Act, a pharmacy business cannot be located in, or directly accessible from, a supermarket. A supermarket means a premises used primarily for selling a range of food, beverages, groceries and other domestic goods (section 11 of the new Act).

Section 220 of the new Act provides a limited exception to this for existing businesses. The exception only applies if, on 28 March 2024, the business was operating at a premises that is in or directly accessible from a supermarket. The exception applies for as long as the business is continually carried out by the same owner. The exception will not apply, for example, if the business changes ownership or relocates to different premises.

If your pharmacy business operates from premises that are in or directly accessible from a supermarket, you should carefully how the new Act applies to your circumstances, including sections 11, 28 and 220 of the new Act and seek legal advice if needed.

Under section 22 of the new Act, a third party cannot do, or purport to do, any of the following:

• control how pharmacy services involving medicines are provided to the public
• restrict the types of medicines or health services the business may provide to the public (examples of a health service include Queensland Needle and Syringe Program service, opioid dependency treatment program service, a sexual or reproductive health service)
• require medicine for the business to be bought from a particular supplier

and

• impose a sales target for the business in relation to a particular medicine.

The focus is on control that impacts how a business provides services relating to medicines and public health.

Section 22 does not apply to an employee of the business. Section 22 also makes clear the types of legitimate activities that are not prohibited, particularly requirements about:

• opening hours
• advertising, branding, product displays or other marketing activities
• information technology systems
• staff training
• staff uniforms.

The provision in the contract, agreement or arrangement is void.

A party to the contract, agreement or arrangement, other than the owner, may commit an offence with a maximum penalty of 200 penalty units.

When deciding if a person is a fit and proper person to own a pharmacy business, the Council must have regard to whether the person is a party to a contract, agreement or arrangement which gives a third-party inappropriate control, that is, control which is prohibited under section 22(3) of the new Act. This means that the Council may decide not to grant a pharmacy business licence to a person, if the person is party to an agreement giving a third-party inappropriate control over the pharmacy business.

The Council may request documents to help determine if the person is a party to a contract, agreement or arrangement which gives inappropriate control to a third party.

Under section 74 of the new Act, the Council may appoint an appropriately qualified person to review the document for the purposes of determining if the person is party to an agreement that gives inappropriate control to a third party.

The Council may by notice to the person, ask the person to pay to the Council the fee prescribed by regulation for having the reviewer carry out the review and prepare a report.

The reviewer must prepare a report for the Council within 60 days.

Fees will apply for applications made under the new Act, for example, applications for a pharmacy business licence. The fees will be set out in a regulation made under the new Act.

Proposed fees

For business rules to determine which tier applies, refer to the Tiers table.

Tiers

The below table lists tier categories based on ownership structure.