On 1 December 2023, Australia’s treasurers agreed to revitalise National Competition Policy (NCP), committing to develop a long‑term pro‑competitive reform agenda through the Council on Federal Financial Relations (CFFR).
History
The original National Competition Policy established in 1995 was made up of intergovernmental agreements agreed by all Australian, state and territory governments, based on recommendations in the 1993 Hilmer Review.
The NCP agreements included competition principles, related reforms, and institutional arrangements that oversaw the implementation of an ambitious reform agenda, including structural reforms that modernised and strengthened Australia’s economy, making it more resilient in the face of global economic change through the late 1990s and 2000s.
Looking forward
Revitalising National Competition Policy recognises the substantial changes in the Australian economy over the past 30 years, and the shared opportunities and challenges these present for our nation.
Australia needs a competitive, adaptable, and resilient economy. This will support a cost‑effective net zero transformation, embrace the opportunities of the digital economy and the growth in human services, enhance consumer wellbeing, and support Australia’s most vulnerable.
The Treasury’s Competition Taskforce is collaborating with all state and territory governments to assist the development of a revitalised NCP for consideration by CFFR.
The Treasurer has asked the Productivity Commission to support the Australian, state and territory governments’ efforts by assessing the impacts of potential NCP reforms on GDP, economic growth, productivity, government revenue and consumer wellbeing. The Productivity Commission's final report is to be handed to the Australian Government by 1 November 2024.
Consultation
Written submissions are invited on a consultation paper on revitalising NCP until 23 September 2024.
Public consultation is critical to informing the collaborative work by the Australian, state and territory governments towards revitalising NCP.
Resources
- National Competition Council – About the 1995 National Competition Policy
- Media release – Treasurers met in Queensland – 1 December 2023
- Media release – Treasurers work together to boost competition – 14 March 2024
- Productivity Commission Inquiry – National Competition Policy analysis – 15 March 2024
- Media release – Next step to revitalise National Competition Policy – 26 August 2024