The Australian Dental Industry Association (ADIA) has this week reported that small businesses will be hit particularly hard by a new tax proposed by the nation’s regulator of dental products and other medical devices, the Therapeutic Goods Administration (TGA). Businesses would be required to pay the new tax to supply new and innovative products lawfully in the medical and dental industries. ADIA has asked that implementing the tax be delayed to allow public consultation.
In February, ADIA welcomed a change in legislation to the way the TGA regulates medicines and medical devices.
The TGA initially suggested 12 months ago a new tax for placing low-risk (Class 1) medical devices on the Australian Register of Therapeutic Goods. However, it has now been established that, at the same time as changes to legislation took place regarding the regulation of medicines and medical devices, the TGA formally documented that the tax would, in fact, go ahead.
The proposal to introduce the new medical devices tax has been placed before the health minister for consideration. ADIA has formally asked the TGA to withdraw its recommendation so that an appropriate level of public consultation can take place.
