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
Mergers 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 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.
Merger reform
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
Public consultation feedback between 20 November 2023 and 19 January 2024 informed the design of the merger reform.
For background information, see: Merger reform consultation.