How much does it cost to develop a supplement in Australia?

In short

  • The costs fall into four parts: the development work, the TGA's fees, the first production run, and what continues after launch (the annual TGA charge, stability testing and reorders).
  • For a listed medicine in 2026–27, the TGA charges $1,063 to list it, then $1,566 a year once it has had turnover. A new ingredient that isn't yet permitted costs $19,826 to $33,696 in TGA fees to evaluate first.
  • A first production run is at least 3,000 finished retail packs, priced per unit on a formal quote.
  • Design to the price: divide the retail price by four or five to get the target cost of goods, packaging included.

Where the money goes

Cost What it covers What sets it
Development: the Design phase The brief workshop, the formulation, its specification and a quote for making it A fixed fee for a defined outcome
Development: the Build phase The R&D sample, the product specification, the evidence, the TGA listing and the label Fixed fees for each stage
The TGA's fees Listing the medicine, then the annual charge, plus any variation or new ingredient The TGA's schedule, set each financial year
The first production run Manufacturing, release testing and delivery to your warehouse or 3PL A per-unit price on a formal quote, at least 3,000 packs
Packaging The bottle, tub, pouch or sachet, the label and the carton The format, and whether the pack is standard or bespoke
After launch The annual TGA charge, the stability program and reorders The shelf life on the label and how the product sells

The development work comes first. In our process it runs in two phases: Design, about 8 to 10 weeks, which ends with a formula, its specification and a quote you can approve; and Build, about 20 to 24 weeks, which takes the product through the sample, the evidence, the listing and the label to 12 to 14 weeks in manufacture. See the Launch Engine for the steps, and formulation for what the design stage delivers.

The TGA's fees

Every listed medicine pays two: the listing application, $1,063 in 2026–27, paid within 14 days of submitting, and then the annual charge, $1,566 for each financial year once the product has had turnover. A listing that has never had turnover is exempt from the annual charge until sales start, as long as the sponsor declares each July that it had none in the year before; once the product has sold, the charge applies every year, even in a later year with no sales.

Two more apply only in particular cases: a new ingredient that isn't yet in the TGA's Permissible Ingredients Determination, which costs $19,826 to $33,696 in TGA fees for its application and evaluation, and a GMP clearance for a factory overseas, $818 per manufacturer, site and sponsor. The full schedule, with variations and new indications, and the steps around each fee are in our TGA approval guide.

Add it up

The TGA’s fees for your plan, 2026–27

Total, in TGA fees$2,629
  • Listing application$1,063
  • Annual charge$1,566

The TGA’s own fees for 2026–27, from the fee table in our TGA listing guide; the annual charge applies once a medicine has had turnover. Development, evidence, stability testing and manufacturing are separate.

What our work costs

Each stage is a fixed fee for a defined outcome, paid before the stage begins. Manufacturing is priced per unit on a formal quote: half with your purchase order, half before dispatch. We take you through the investment on the strategy call, for your product.

You can stop at the end of the Design phase with no obligation to have us manage the manufacture, and the formulation is yours to take anywhere. If you go into production with us, the agreement covers your first three production orders.

The minimum order

The minimum is 3,000 finished retail packs per batch, made in one run, whatever the format, for TGA-listed medicines and foods alike. So the first run's manufacturing cost is the unit price on the quote multiplied by at least 3,000.

Packaging has minimums of its own. Each pack format has a minimum from the packaging supplier, and single-serve sachets typically need around 150,000 sachets, so a tub or pouch is usually the better format to launch with. Splitting one batch across two formats is sometimes possible, and we look at it for each product.

Design to the price: the cost of goods

The formula is built to the price the product has to sell at, not costed after it. As a rule of thumb, divide the retail price by four or five to get the target cost of goods, packaging included. At a retail price of $60, for example, that is $12 to $15 a unit.

At that level, direct-to-consumer brands typically keep about 80% gross margin, and brands selling through pharmacies and health food stores about 60%. The quote confirms the cost of goods before you order, so the margin is known before anything is made.

Work it out

Your cost of goods, from your retail price

Target cost of goods, a unit$12 to $15First run, at the minimum of 3,000 packs$36,000 to $45,000Gross margin, direct-to-consumer brandstypically about 80%Gross margin, brands selling through pharmacies and health food storestypically about 60%

The rules of thumb on this page, worked through. Packaging is in the cost of goods and the first run is costed at it, so this is a budget, not a quote. The TGA’s fees are above, and our own fees are a fixed fee per stage, set out on the strategy call.

What adds to the cost

  • Bespoke packaging. A custom pack adds about three months. Standard bottles, pouches and tubs are faster, and we can use your own pack if you have one. See packaging.
  • A format with high minimums. Single-serve sachets typically need around 150,000 sachets, and effervescent tablets need very large batches. More in formats.
  • Another round of changes. A second round on the formula or the sample adds time to the stage it happens in.
  • A new ingredient. One that isn't yet permitted needs the TGA's own evaluation first: $19,826 to $33,696 in TGA fees, and 40 working days for a preliminary assessment, then 70 to 180 working days for the evaluation. See new ingredients and how long it takes.
  • A longer shelf life. 24 months is standard for a listed medicine; 36 months is possible with the right stability program, which runs for the length of the shelf life on the label. See stability testing.
  • A factory overseas. A listed medicine made overseas needs a TGA GMP clearance for the site, applied for by the Australian sponsor; the processing fee is $818, and compliance verification or a TGA inspection can add to it. See GMP clearance.

Foods and cosmetics

A product on the food pathway pays no TGA listing fee or annual charge, because it isn't entered on the ARTG: it must comply with the Food Standards Code instead, and give up therapeutic claims. See supplements as foods.

A cosmetic needs no TGA entry either. The business that imports cosmetics or their ingredients, or makes the chemicals in them, registers with AICIS for each year it does: $85 to $3,585 for the 2026–27 registration year, depending on the value of chemicals introduced the year before. See AICIS registration.

Which pathway a product takes depends mostly on how it is presented, starting with its claims, and it changes the costs above. See medicine, food or cosmetic?

After launch

The annual TGA charge continues each financial year, the stability program keeps running for the shelf life on the label, and every TGA-listed batch is third-party tested before release. We manage reorders and update the listing and the label when the product changes (reformulating a supplement). Long partnerships tend to be ranges: BWellness has had five production batches since 2021 and nine products developed with us. More in extending a supplement range.

Questions

Frequently asked questions

It depends on the formula, the format and the pathway, but the costs fall into four parts: the development work (fixed fees for each stage), the TGA's fees (for a listed medicine in 2026–27, $1,063 to list it, then $1,566 a year once it has had turnover), the first production run (priced per unit, at least 3,000 packs) and what continues after launch: the annual charge, stability testing and reorders.

A food pays no TGA listing fee or annual charge, because it isn't entered on the ARTG, but it gives up therapeutic claims and every ingredient must be permitted in food, at food levels. The development work, the label and manufacturing remain, and with us the minimum order is the same: 3,000 finished retail packs per batch.

With us, 3,000 finished retail packs per batch, made in one run, whatever the format. Packaging has its own minimums: single-serve sachets typically need around 150,000 sachets, so a tub or pouch is usually the better format to launch with.

Divide the retail price by four or five, packaging included. Direct-to-consumer brands at that level typically keep about 80% gross margin, and brands selling through pharmacies and health food stores about 60%. The formula is designed to that target, and the quote confirms it before you order.

With us, each stage is a fixed fee for a defined outcome, paid before the stage begins, and manufacturing is priced per unit on a formal quote, half with the purchase order and half before dispatch.

The TGA's annual charge for a listed medicine, the stability program for the shelf life on the label, testing of each batch before release, and reorders. Changing the product later can mean varying the listing ($537 in 2026–27) and updating the label.

Sources

General information, checked against these sources on 22 and 23 October 2026. It isn't advice on a particular product. Minimums, payment terms, timings and the cost-of-goods rule of thumb are from Take Friday Off's records.

Close your laptop on Thursday night.

Your launch keeps moving, in hands that care about it as much as you do. That's The Friday Feeling™.

15 minutes, no obligation, and a clear next step either way.

Questions first? Read the questions brands ask us