Therapeutic Products Act scrapped amid concerns over costs and innovation barriers

The legislation risked overregulating low-risk products and creating unnecessary costs

Therapeutic Products Act scrapped amid concerns over costs and innovation barriers

Parliament has passed the Therapeutic Products Act (TPA) Repeal Bill, marking a shift in the regulation of medicines, medical devices, and natural health products.

According to associate health minister Casey Costello, the initiative aligns with the government’s commitment to reducing regulatory burdens and enhancing accessibility.

“Repealing the Therapeutic Products Act was a promise this government made to the New Zealand public, and I am happy that we have delivered on this,” said Costello. She emphasised that the TPA risked overregulating low-risk products, creating unnecessary costs, and obstructing access to essential medicines and innovations in the health sector.

The TPA, originally scheduled to take effect in September 2026, was criticised by industry leaders and healthcare practitioners during the Health Committee’s review. Concerns centred on the act’s potential to stifle innovation and impose undue operational changes on businesses.

Costello noted that by repealing the TPA, the government ensures that the current regulatory framework—the Medicines Act 1981 and Dietary Supplements Regulations 1985—will remain in place for now. Costello acknowledged the need for modernisation, noting that the Medicines Act is outdated and does not meet the current needs of the health sector.

“There is no question that the current Medicines Act is outdated, and the Government is already working on a modern, fit-for-purpose regulatory system,” Costello said in a statement. “In September, the cabinet agreed to develop new legislation for the regulation of medicines and medical devices and also agreed to develop standalone legislation for natural health products.

This separation addresses concerns raised by the natural health products sector, which strongly opposed being regulated alongside medicines and medical devices. Minister Costello noted the sector’s feedback, highlighting the government’s intention to craft laws that protect consumers while avoiding unnecessary red tape for the industry.

Repealing the TPA fulfils a key policy goal outlined in the National-New Zealand First and National-ACT coalition agreements. Minister Costello expressed confidence that the new approach will balance consumer safety with the flexibility needed for industry innovation.