Legislation review

Under the Competition Principles Agreement, all Australian Governments undertook to review and, where appropriate, remove regulatory restrictions on competition in accordance with the guiding principle that:

‘…legislation (including Acts, enactments, Ordinances or regulations) should not restrict competition unless it can be demonstrated that:
• The benefits of the restriction to the community as a whole outweigh the costs, and
• The objectives of the legislation can only be achieved by restricting competition.’
Clause 5(1) Competition Principles Agreement

The application of this principle involves:

• reviewing existing legislation that restricts competition and reforming it unless the restrictions are in the public interest;
• testing legislative proposals that restrict competition against the guiding principles of existing legislation; and
• ongoing review of retained regulatory restrictions on competition.

Victoria has successfully implemented a comprehensive legislation review program. Reviews are now completed and, in many cases, significant reform implemented. This process has emphasised broad stakeholder consultation, transparency in decision-making and a focus on the effects of proposals on rural and regional communities.

The Victorian Competition and Efficiency Commission is the Victorian Government’s foremost advisory body on business regulation reform and opportunities for improving Victoria’s competitive position. All new and amended legislation with potentially significant effects for business and competition will be subject to a Business Impact Assessment. This analysis will encompass assessments against the principles of National Competition Policy. The Victorian Competition and Efficiency Commission is the responsible body for assessing the adequacy of Business Impact Assessments and Regulatory Impact Statements.