The Albanese Government has been given the chance to finally deliver meaningful competition reform for Australian businesses and consumers – having repeatedly failed to do so.

 

In a Senate Economics Committee report released today, the Coalition has made clear while it endorses the legislation – the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 – the success of the new regime hinges on Labor’s ability to successfully implement it.

 

On that score, the Albanese Government’s record counts against it, having shown poor stewardship of complex policy matters, mismanaged the economy, and dragged its feet on key competition initiatives – including supermarket reforms, the Consumer Data Right and the News Media Bargaining Code.

 

The Coalition stressed the need for a balanced and transparent implementation process that monitors costs, reports regularly on progress, and focuses most heavily on sectors where market concentration is problematic.

 

It echoed the concerns of many stakeholders that the economy-wide nature of the new framework risks burdening small and medium businesses with potentially high compliance costs and red tape, neither of which they are in a position to manage – and stifling investment and innovation as a result.

 

This regime also represents a major challenge for the ACCC, demanding considerable resources and, in many ways, a shift in direction.

 

The Coalition noted in its comments that, while it absolutely supports the ACCC’s work in achieving better competition outcomes, future increases to funding and staff – including to deliver the mandatory reporting framework – must be justified by its success.

 

Stakeholder concerns over implementation risks, including delays in processing merger applications and the need for constant consultation to review thresholds and other settings were reflected in the Coalition’s recommendations.

 

These closely reflected proposals to improve implementation from the Business Council of Australia and include regular publication of KPIs to measure how the regime is performing and the establishment of an expert implementation panel.

 

 

Comments attributable to Mr Taylor:

 

“The Coalition is committed to competition reform that enhances growth, delivers real benefits for Australian consumers and businesses and, most important of all, puts the customer in charge.

 

“The customer is the best regulator in the industry, but they can only do that if they have competition and if they have choice. That's why a robust competition framework is essential, but it can't become sludge and red tape.

 

“Australians and Australian businesses have good reason to doubt this government's ability to implement complex policy. Under Labor the price of almost everything has gone up. 

 

“The Coalition will always stand ready to work towards balanced, targeted solutions that will strengthen competition where it is most needed, supporting growth, innovation and, most of all, the prosperity and choices of all Australians.”

 

Comments attributable to Senator Smith:

 

“The Coalition is supporting this legislation in good faith, because we want to see competition improve in concentrated sectors of the economy like aviation and the supermarkets.

 

“Labor must ensure that the implementation of this new regime is efficient, responsive and transparent – something it has not been able to deliver with other policy rollouts.

 

“Stakeholders have made clear that there are risks associated with this framework if it is poorly implemented and our recommendations reflect their informed suggestions for how to mitigate those risks.”

 

ENDS