Revitalising National Competition Policy

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On 29 November 2024, Commonwealth, state and territory treasurers signed 2 agreements to revitalise National Competition Policy (NCP).

These agreements introduce updated National Competition Principles and outline the first steps of a 10-year reform program, supported by the $900 million National Productivity Fund.

The first tranche of reforms focus on easing cost-of-living pressures, and future reform tranches are planned for late 2025, mid-2027 and mid-2030.

The agreements also set out new institutional arrangements including a key role for the National Competition Council in assessing implementation and payments.

For more information on NCP contact: NationalCompetitionPolicy@treasury.gov.au

History

The original NCP began in 1995 through intergovernmental agreements involving all Australian, state, and territory governments, based on recommendations from the 1993 Hilmer Review.

This policy included competition principles, structural and related reforms and institutional arrangements to oversee implementation.

These changes modernised and strengthened the economy, making it more resilient during global economic shifts in the late 1990s and 2000s.

Productivity Commission study

The Treasurer asked the Productivity Commission to examine how NCP reforms could impact economic growth and productivity, gross domestic product (GDP) and government revenue.

On 1 November 2024, the Productivity Commission delivered its report to the government. It found that revitalised National Competition Policy could provide an ongoing boost to GDP of up to $45 billion.

Previous Consultation

Treasury held public consultations on revitalising NCP.

The consultations invited feedback on proposed principles, reforms and institutional arrangements.

Resources