23 December 2011

Government Releases Price Signalling Regulations for Consultation

The Parliamentary Secretary to the Treasurer, David Bradbury, has today released the Gillard Government's price signalling regulations for consultation.

"The Government recently passed the Competition and Consumer Amendment Act (No. 1) 2011, which commences on 6 June 2012,to prohibit anti-competitive price signalling and other information disclosures", said Mr Bradbury.

"The Competition and Consumer Amendment Regulations 2012 (Regulations) give effect to the Government's decision to initially target the laws to the banking sector.

"The Regulations will apply the price signalling prohibitions to activities undertaken by an Authorised Deposit-taking Institution when taking deposits, and lending money.  This approach draws extensively on the definition of ‘banking business' in the Banking Act 1959.

"The Government has also been clear that we would only extend these laws to other sectors of the economy after further detailed consideration and this is reflected in the Regulations. 

"The Government's price signalling laws strike the appropriate balance between allowing legitimate or pro-competitive conduct, and cracking down on anti-competitive price signalling which harms consumers.

"The Government is committed to getting a better deal for Australian families and small businesses in the banking system and these new laws will help to ensure that."

The Regulations and Explanatory Note can be found at www.treasury.gov.au

Consultation on the Regulations closes on 22 March 2012.

23 December 2011