Sam Rae (Hawke, Australian Labor Party) Share this | Hansard source

The Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 is a landmark piece of legislation that will modernise Australia's merger framework for the first time in nearly five decades. This reform is about striking a critical balance: equipping our competition regulator with the authority it needs to safeguard markets and protect consumers while also enabling it to operate with speed and clarity, providing certainty for businesses and for our economy at large.

Mergers and acquisitions are absolutely essential to a thriving economy. They bring investment and allow businesses to scale and promote innovation. Successful mergers can drive greater efficiencies, expand consumer choices and, importantly, lower costs. However, not all mergers are beneficial for consumers or for our economy. Some entrench market power, reduce competition and, ultimately, harm consumers. For instance, in the supermarket sector, acquisitions by dominant chains have reduced competition in local markets, leaving consumers with fewer options and higher prices, particularly in regional areas. Similarly, in telecommunications, mergers between major providers have raised concerns about reduced market competition leading to higher costs and slower innovation in essential services such as mobile and internet access. These examples highlight how unchecked consolidation can harm Australians in their everyday lives and underscore the need for reform.

Such harmful mergers show why a robust and responsive competition regime is absolutely essential. We must ensure that harmful mergers are identified and prevented, fostering a competitive environment that delivers fair prices, greater choice and innovation for Australians, yet Australia's current system falls short of what a modern economy needs. We are one of only three OECD nations without a mandatory notification system for mergers, leaving our competition regulator, the ACCC, to rely on a voluntary and highly reactive process. This creates significant blind spots, allowing mergers with potential risks to competition to proceed without adequate scrutiny. Meanwhile, pro-competitive and non-contentious mergers often face delays and uncertainty, burdening businesses unnecessarily.

The Albanese government's reforms will bring Australia's merger framework into the 21st century. These changes will establish a mandatory notification system, providing the ACCC with full visibility of significant transactions. This ensures that the regulator can focus on the mergers that pose the greatest risks to competition, while businesses pursuing beneficial transactions are supported with a streamlined and efficient process. The reforms will strengthen the ACCC's ability to act decisively. Pro-competitive mergers will advance quickly, with a clear pathway for approvals within 30 working days where there are no concerns for consumers. Harmful or risky transactions, on the other hand, will be scrutinised and, if necessary, prevented. This balance of ensuring markets are both dynamic and protected is critical to the health of our economy.

The bill also introduces monetary thresholds to focus resources where they are most needed. By targeting mergers with the potential to lessen competition substantially, the ACCC can direct its efforts toward transactions with significant economic impact. Transparency and accountability will also be enhanced for the creation of a public register of notified mergers, giving businesses, consumers and stakeholders a clearer view of the process.

These reforms are integral to our broader economic vision—an economy built on strong competition, higher productivity and good wages for working people. Competition is the lifeblood of a dynamic economy. It compels businesses to innovate, improve efficiency and deliver better value to consumers, but its benefits extend far beyond markets. When businesses innovate and productivity rises, workers are better positioned to share in these gains of secure jobs, higher wages and improved conditions. By fostering competition, we reduce the power of monopolies and oligopolies that distort markets and concentrate wealth in fewer hands. Fairer markets lead to fairer outcomes, lower prices for essential goods and services, greater access to opportunities for workers and more choices for consumers. Importantly, fair competition encourages businesses to invest in their people, recognising that skilled and well-supported workers are critical to long-term success.

The Albanese government's approach reflects our belief that strong competition, higher productivity and good wages for working people are not just desirable but essential for a fairer, stronger and more resilient economy. Through these reforms, we ensure that Australia's economic growth lifts everyone, building a future that rewards effort, encourages innovation and supports working Australians and their families. These outcomes are only possible with a regulator equipped to act decisively and efficiently. That is why these reforms provide the ACCC with the authority and the framework to protect competition effectively. Pro-competitive mergers will move forward without unnecessary delays, while harmful or risky transactions will face rigorous scrutiny and intervention if required. This approach not only fosters market dynamism but also safeguards consumer interests.

These are key foundations for our strong and fair economy. This reform reflects our commitment to ensuring a competition regulator that is both effective and efficient in protecting the interests of Australians, while providing businesses with greater certainty. It demonstrates the Albanese Labor government's dedication to creating a stronger, fairer and more competitive economy that benefits all Australians now and into the future.

See this speech in context