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.