Government launches review to ‘revitalise national competition policy’
Treasury is seeking feedback on how to modernise competition reforms in order to create a more productive and competitive economy.
The government has released a consultation paper exploring ways competition policy can be updated in order to respond to new players, new markets and new disruptions in the modern world.
The paper said that a more competitive economy will mean higher quality and cheaper goods and services, as well as jobs with higher wages and more dynamic, innovative and productive businesses.
“That’s why the Commonwealth and states and territories agreed to revitalise national competition policy in 2023 and will seek to agree new competition principles by the end of the year,” the paper said.
The paper noted that Australia’s economy has become more digital, and while this offers big opportunities to boost competition, there have been instances of winner-takes-all market dynamics in digital marketplaces and new barriers to consumer choice.
“We are also in the middle of the biggest transformation in the global economy since the industrial revolution as the world moves to net zero – and we need to ensure competitive forces promote cleaner, cheaper and more reliable energy,” it said.
The government said the consultation paper is an important step in surfacing new ideas and reinforcing existing shared competition principles to ensure there’s a shared understanding of the way forward.
The Australian and state and territory governments are seeking feedback on how to modernise national competition policy (NCP) in three areas, including the national competition principles, proposed competition reforms, and institutional and governance arrangements.
In a joint release, Treasurer Jim Chalmers said the existing NCP framework is almost three decades old, and while it has serviced Australia well, the economy has changed and the NCP needs to be updated.
“To ensure the NCP framework remains fit for purpose into the future, Australian, state and territory governments are working together to revitalise NCP,” said Chalmers.
Feedback from the consultation will inform work that will be considered by governments later this year.
“This is the next logical step to reform competition policy nationally,” the Treasurer said.
“It builds on actions governments are already implementing including making Australia’s merger control system stronger, simpler, more targeted, faster and transparent; abolishing around 500 nuisance tariffs, and productivity enhancing reforms to planning and zoning around the country.
“We have also put in place an ACCC inquiry into supermarket prices, funding for CHOICE to conduct quarterly price monitoring reports, and will strengthen the Food and Grocery Code to get a fair go for families and farmers.”
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