Pharmacy Succession Allowance
Find out if you are eligible
For a pharmacist to receive a Pharmacy Succession Allowance, a pharmacy must:
- be approved under Section 90 of the National Health Act 1953
- have a special rural new approval
- be located in the Pharmacy ARIA categories of ‘moderately accessible’, ‘remote’ or ‘very remote’
- be situated at least 10 km, measured door to door by the shortest lawful access route, from the nearest Section 90 pharmacy.
If the pharmacy meets the above criteria, the pharmacist must also:
- demonstrate that the present approved pharmacist had been trying unsuccessfully to attract a purchaser for the business for a period of at least two years. This must be supported with a statutory declaration from the vendor stating the:
- period of attempted sale
- sale price during the period
- steps taken in marketing the property
- demonstrate that the sale price of the pharmacy premises reflect the current market value.
An incoming pharmacist—that is, a pharmacist who has purchased a pharmacy and has received a Pharmacy Succession Allowance or a Pharmacy Start-up Allowance for that pharmacy—is ineligible to apply for another Pharmacy Succession Allowance for the three years following the closure of the pharmacy. A pharmacy with a Pharmacy Start-Up Allowance will not be eligible for a Pharmacy Succession Allowance within four years of the pharmacy opening.
Payment
To receive payments, the eligible pharmacist must keep the premises open, with a registered pharmacist in attendance, for at least:
- 20 hours a week
- four days a week
- 48 weeks a year.
To receive the initial payment, the eligible pharmacist must provide a statuary declaration stating they are aware of these requirements.
To receive subsequent payments, the eligible pharmacist must provide a statutory declaration stating their intention to maintain these hours of operation.
The statutory declaration must be forwarded to Medicare Australia before the payments can be processed. If the minimum operating hours are not met, or if a statutory declaration is not provided, the payments can not be made.
The Pharmacy Succession Allowance is paid in three instalments:
- first payment of $40 000 paid after the pharmacy opens, under the new Section 90 approval
- second payment of $10 000 paid 12 months after the first payment
- third payment of $10 000 paid 12 months after the second payment.
Sale of pharmacy
If a pharmacy approved for the Pharmacy Start-up Allowance is sold and there are further allowance payments, the incoming pharmacist needs to do the following to be eligible to receive them:
- apply to Medicare Australia for a transfer of the allowance at the time of purchase
- send a statutory declaration to Medicare Australia stating the required hours of operation have been met since the transfer of ownership and their intention to continue to comply with at least the required hours and mode of operation.
Applying for the Pharmacy Succession Allowance
The Pharmacy Succession Allowance application form is available:
- online
- by calling Medicare Australia on 08 8274 9470
Send the signed application form and required documentation to:
Community Pharmacy Agreement Officer
Pharmaceutical Benefits Section
Medicare Australia
GPO Box 9826
Adelaide SA 5001
For more information:
Email sa.guild.govt.programs@medicareaustralia.gov.au
Call the Community Pharmacy Agreement Officer on 08 8274 9470
Last updated: 9 October, 2008