Albanese government releases competition reform policy
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The news: Treasurer Jim Chalmers has released a discussion paper outlining reforms to Australia’s National Competition Policy (NCP), focusing on boosting economic dynamism and lowering barriers to labour mobility.
The paper, co-released with Assistant Minister for Competition Andrew Leigh and state and territory governments, proposes leveraging data, digital technology, and reducing non-compete clauses in employment contracts, according to the AFR.
The context: Federal and state governments are working together on the reforms, which may also streamline regulations in licensing and improve recognition of overseas qualifications.
The numbers: The paper said reduced competition had played a role in slowing productivity growth. Currently, around on in five workers are subject to non-compete clauses and 29% are bound by no-poaching agreements.
The proposed project aims to modernise the NCP, originally established by the 1993 Hilmer Review, to better suit today’s modern economy.
Feedback from the consultation process on how to modernise the NCP framework will be reviewed by governments later this year.
What they said: “Our existing NCP framework is almost three decades old and while it has served Australia well, we recognise our economy has changed and our NCP needs to be updated,” Chalmers said in a joint statement with Leigh and NSW Treasurer Daniel Mookhey.
“We are developing a new NCP framework which responds to the new players, new markets, and new disruptions of the modern world.”
“This is the next logical step to reform competition policy nationally. It builds on actions governments are already implementing including making Australia’s merger control system stronger, simpler, more targeted, faster and transparent; abolishing around 500 nuisance tariffs, and productivity enhancing reforms to planning and zoning around the country.”
The sources: Treasurer Jim Chalmers statement, AFR
