Competition
Competition is an important driver of economic dynamism, productivity and real wages.
Competition encourages productivity gains to be passed onto consumers through lower prices or higher quality products, and to workers through higher wages.
This helps to ease cost‑of‑living pressures over time.
Mergers and acquisitions
Mergers and acquisitions can contribute to the efficient functioning of the economy, providing a way for firms to achieve economies of scale, diversify risk and exit underperforming businesses.
This can benefit consumers through lower prices, more choice, and higher quality goods and services as well as help support sustainable wage growth for workers.
Mergers and acquisitions that are anti‑competitive can limit innovation, reduce the range and quality of products and services, and increase prices.
Review
The Competition Review looked at:
- whether Australia’s current merger rules and processes are effective, enabling beneficial mergers while addressing those that could be anti‑competitive
- in what ways Australia’s merger rules and processes could be improved.
The Competition Review Taskforce provided advice to government on whether any changes should be made to Australia’s merger rules and processes and what those potential changes may be.
Reforming merger control
Government response
In response to the Review, the government will modernise Australia’s merger system to make it faster, stronger, simpler, more targeted and transparent.
The reform
The Australian Competition and Consumer Commission (ACCC) will be empowered and resourced to administer a mandatory and suspensory administrative system.
This means more clarity and certainty for businesses, more help to safeguard consumers and more competition.
Subject to further consultation and the passage of legislation, the reforms will commence on 1 January 2026.
For more details, see the Government’s merger reform.
Consultation
Current
Exposure draft consultation
July – August 2024
The Treasury has released the exposure draft of Treasury Laws Amendment Bill 2024: Acquisitions and explanatory memorandum.
This legislation will deliver the Australian Government’s reforms to merger rules and processes announced on 10 April 2024.
The exposure draft sets out the framework of the new mandatory and suspensory merger control system.
Submissions are invited on the exposure draft until 13 August 2024.
Treasury will consult on the notification thresholds, fees, and regulations including the ACCC’s public register and associated transparency safeguards later this year.
For more information, see Reforming mergers and acquisitions – exposure draft.
Previous
Issues consultation
November 2023 – January 2024
In November 2023, Treasury released a consultation paper on Australia’s merger control system.
Consultation ran until January 2024. Treasury received 51 submissions and engaged with 42 organisations through roundtables.
The consultation sought feedback on whether Australia’s current merger rules and processes are effective and in what ways Australia’s merger rules and processes could be improved.
For more information, see: Merger reform consultation.