NO.076

GOVERNMENT PROGRESSING TRADE PRACTICES ACT REFORMS TO BENEFIT CONSUMERS

AND BUSINESS

The Treasurer announced today that the Government will propose amendments to

refine the Trade Practices Legislation Amendment Bill (No. 1) 2005 in the Senate

next week.

The Bill implements the Government’s response to the independent Review

of the Competition Provisions of the Trade Practices Act.

The Government’s amendments to the Bill will clarify the new merger processes.

TheBill provides for merger authorisation applications to be considered by

the Australian Competition Tribunal. The amended Bill will make clear that the

Tribunal will be required in each case to seek, and take account of, the views

of the Australian Competition and Consumer Commission.

The Government’s amendments to the Bill will maintain the status quo

on the test for third line forcing conduct. Such conduct will continue to be

banned outright, rather than requiring proof of a substantial lessening of competition.

When the Bill was first introduced, the Government recognised that small businesses

with high turnover and small profit margins that wished to take advantage of

the new collective bargaining notification process may need a transaction limit

that is higher than the existing $3million limit (perbusiness per year) provided

for in the Bill. A higher transaction limit can be set by regulation. The Minister

for Small Business and Tourism is developing recommendations for these higher

transaction limits as appropriate.

The Government proposes that, once passed, the legislation and regulations

commence on 1 January 2006.

MELBOURNE

2 September 2005

Contact: Amanda Kennedy

03 9650 024