Australia “in desperate need” of competition reform: IPA
Institute of Public Accountants (IPA) chief executive, Andrew Conway, is urging the Federal Government to take conclusive action to achieve real competition policy reform.
Conway said that Australia is in "desperate need" for competition reform, which he pinpointed as crucial for ensuring a healthy, effective and competitive market.
"Reform means more than just tax reform, which of course is also essential for our economy; it is about healthy competition and the Harper Review has provided a framework for Australia to move forward — so let's get on with it," Conway said.
"In particular, [it will] address the need to protect the competitive process so that small and medium-sized enterprises [SMEs] can compete on a more level playing field."
Conway identified two key areas of current policy that need to be addressed in order to increase market competitiveness: unconscionable conduct and section 46 of the Competition and Consumer Act 2010.
"Section 46 needs an overhaul to strengthen the prohibition on firms using their market power to substantially lessen competition, including the removal of the ‘take advantage' element from the existing prohibition," Conway said.
"In essence, section 46 needs to be amended with an appropriate ‘effects test'. These recommendations form part of our Australian Small Business White Paper."
Conway said the IPA supports a strengthened Australian Competition and Consumer Commission to help implement these changes.
"We need to ensure a fair and level playing field for small business that encourages innovation and growth of the SME sector," Conway said.
"There are other areas to be addressed for effective competition policy reform such as small business access to remedies, collective bargaining and competitive neutrality."
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