NO.143

COMMENCEMENT OF TRADE PRACTICES ACT REFORMS

The Australian Government’s Trade Practices Legislation Amendment Act (No. 1) 2006 (the Act) and supporting regulations will commence from 1 January 2007.

The Act implements the Government’s response to the Review of the Competition Provisions of the Trade Practices Act (Dawson Review), and contains a number of important reforms to the Trade Practices Act 1974 (TPA). It creates a voluntary formal merger clearance system, and provides for changes to the existing merger authorisation process. The Act also creates a new collective bargaining notification regime, for the benefit of small business.

The Act makes a number of important changes to existing notification and review processes, makes improvements to the Australian Competition and Consumer Commission’s enforcement powers, and significantly increases the maximum penalty that can be imposed in relation to serious breaches of Australia’s trade practices laws.

Australian businesses are eagerly awaiting the benefits from the Act. The changes made by the Act will further enhance the welfare of all Australians through the promotion of competition and competitive markets.

The Government is continuing to consult in relation to the higher thresholds that will apply under the new collective bargaining regime. Additional regulations will be made early in 2007 to amend the threshold that applies to particular industries, in light of comments received from stakeholders on a discussion paper issued this year. In the meantime, the Act provides for a default $3 million threshold for all collective bargaining applicants.

The Government has commenced consultations with small business on the next stage of its TPA reform to strengthen the misuse or market power provisions and unconscionable conduct provisions of the TPA.

MELBOURNE

22 December 2006

Contact: Renae Stoikos

03 9650 0244