Competitive Neutrality Review to consider changes to Competitive Neutrality Policy

You may be aware that at present, there is no independent monitoring of the States’ compliance with competitive neutrality principles.

The Commonwealth Government’s recent Review of Competition Law recommended that States should be asked to re-commit to the principle of competitive neutrality and review and update competitive neutrality policies. The Review also recommends that clearer guidelines be provided on the application of competitive neutrality during the start-up stages of government businesses and the period of time over which start-up government businesses should earn a commercial rate of return.

The tests used to identify significant business activities were also to be reviewed. States were also to be required to increase transparency and effectiveness of competitive neutrality complaints processes, including by creating a complaints body independent of government.

Commonwealth Treasury announced this week that it has established a Competitive Neutrality Review Secretariat to review the Commonwealth's Competitive Neutrality Policy.

The Secretariat is seeking the views of interested stakeholders on the issues detailed in a Consultation Paper. The Paper canvasses the kinds of issues raised by the Review. Changes in this area may impact on the work of departmental officers who are involved in business activities.

Closing date for submissions is 21 April 2017.