What You Need to Know
Queensland’s pharmacy ownership landscape is undergoing significant changes with the introduction of the Pharmacy Business Ownership Act 2024 (Qld) (New Pharmacy Act). The New Pharmacy Act establishes new and stricter compliance requirements, a new regulatory body in Queensland, and updated ownership restrictions to align with similar requirements in other States.
With the legislation expected to come into full effect by late 2025, existing pharmacy owners and prospective buyers must ensure their business and ownership structures comply with the updated regulatory framework.
This article outlines the key changes pharmacy owners should be aware of, and what to do to prepare.
Key Changes in Queensland’s Pharmacy Ownership Laws
1. Establishment of the Queensland Pharmacy Business Ownership Council
This new regulatory body will oversee pharmacy ownership, manage licensing, monitor compliance, and enforce penalties for breaches.
2. Introduction of a Pharmacy Business Licence
Pharmacies must obtain a valid pharmacy business licence, ensuring only eligible owners (registered pharmacists or approved entities) can operate a pharmacy under the New Pharmacy Act.
3. Material Interest Restrictions
Only practicing pharmacists or their close relatives (spouse or adult child) will be permitted to hold a material interest in a pharmacy business.
The new “Material Interest” test defines when a person is considered to have a material interest in a pharmacy. A person is deemed to hold a material interest if they:
- are a shareholder in a corporation that owns a pharmacy;
- are a beneficiary of a trust that owns a pharmacy; or
- receive profits or revenue from the pharmacy without being an owner.
Many existing pharmacy structures, particularly those involving corporate ownership, discretionary trusts, or revenue-sharing models, will need to be restructured to comply with the New Pharmacy Act. Other agreements, including franchise agreements and even some lease agreements may also need to be updated to ensure they do not confer a material interest in breach of this new requirement.
4. Stricter Compliance and Enforcement
The new licensing regime introduces significant penalties for non-compliance, including fines, licence suspension, or disqualification from owning a pharmacy.
How to Prepare for the Changes
Step 1: Conduct an Ownership and Compliance Review
Assess your current pharmacy business structure and ensure it aligns with the new licensing and ownership requirements.
Step 2: Seek Legal and Financial Advice
If you are unsure whether your current structure will comply with the New Pharmacy Act, consult professionals experienced in pharmacy business structuring and compliance to review this for you. Particularly, if your pharmacy operates under a trust, franchise, or corporate structure as these agreements may require some adjustments to ensure compliance.
Step 3: Stay Informed on Regulatory Updates
Regularly check for updates from the Queensland Pharmacy Business Ownership Council and other relevant authorities as implementation progresses.
Key Takeaways
With the full implementation expected by late 2025, pharmacy owners must review their business structures and other key agreements to ensure compliance and prepare for licensing changes.
If you own a pharmacy or are looking to acquire one, it is critical to review your ownership model and seek expert guidance to remain compliant.
For expert legal advice on pharmacy structuring, ownership, and transactions, contact our team today.
This article was written by Marwan Kojok, Partner and Mariah Jammal, Senior Associate.
