People with disability and seniors to be impacted by new regulatory tax

Disabled, seniors and vulnerable people in the community will be impacted by a new regulatory tax from 1 July 2018, warns the Assistive Technology Suppliers Australasia (ATSA).


The Therapeutic Goods Administration (TGA) will apply a new $530 medical devices regulatory tax to hundreds of assistive technology devices that aid and assist seniors and those with disability to live their lives.


According to ATSA, these additional costs will have to be passed on to those who can least afford it.


ATSA’s Executive Officer, David Sinclair, stated that this could have been avoided if the TGA had consulted the industry before applying this new tax. The TGA was reviewing the requirements for the listing of AT devices, however this review has not been completed, therefore the full impact of the new tax is not clear.


“This approach by the TGA will most likely damage a number of small businesses plus it will create barriers to introduce new technology into Australian market,” he said.


“The TGA has not understood the impact of this decision on a low volume, low margin, sales-based industry. Not only will it increase prices, it is likely to reduce choice as suppliers opt not to import or manufacture some niche but much needed products.”


ATSA is calling on the TGA to produce a public consultation paper that sets out the reason for the new regulatory tax of $530 per Class 1 medical device, and how much revenue the Australian Government expects to collect as a result of its introduction.


ATSA has joined a growing number of organisations including the Australian Dental Industry Association (ADIA), Australian Medical Manufacturers and Distributors Association (AMMDA) and the Optical Distributors and Manufacturers Association (ODMA), in calling for the TGA’s Class I medical device regulatory tax to be withdrawn, so that it can be subjected to public scrutiny for the first time.


26 June 2018.