Competition Policy and the Changing Australian Economy

Deregulation poses major policy challenges. Industries such as telecommunications, and airlines have been more heavily exposed to competition, and others, such as electricity, will soon be exposed for the first time. However, deregulation does not necessarily deliver a fully competitive market. Significant structural impediments to competition may remain. Substantial amendments have been made recently to the Trade Practices Act increasing the force and scope of both the Act and the Commission, and have contributed to the significance of competition policy. Competition policy is likely to be further enhanced by the implementation of the proposals contained in the National Competition Review (the Hilmer Report), which highlight the need for a comprehensive national competition policy to apply universally to all forms of business enterprise. The promotion of competition across the entire economy represents Australia's best opportunity to improve productivity and international competitiveness.