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
- reducing regulatory complexity.
Future reform tranches are planned for late 2025, mid-2027 and mid-2030.
History
The original NCP began in 1995 through intergovernmental agreements involving all Australian, state, and territory governments.
It was based on recommendations from the 1993 Hilmer Review.
This policy included:
- competition principles
- structural and related reforms
- 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
- government revenue.
On 1 November 2024, the Productivity Commission delivered its report to the government.
Consultation
Treasury held public consultations on revitalising NCP.
The consultations invited feedback on proposed principles, reforms and institutional arrangements.
Resources
- Media release – Next step to revitalise National Competition Policy – 26 August 2024
- Productivity Commission Inquiry – National Competition Policy analysis – 15 March 2024
- Media release – Treasurers work together to boost competition – 14 March 2024
- Media release – Treasurers met in Queensland – 1 December 2023
- National Competition Council – About the 1995 National Competition Policy