Australian Industries Preservation Act 1906

Legislation au C1906A00009 Not in force Act

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AUSTRALIAN INDUSTRIES PRESERVATION.

 

No. 9 of 1906.

An Act for the Preservation of Australian Industries, and for the depression of Destructive Monopolies.

Assented to 24th September, 1906.]

BE it enacted by the King’s Most Excellent Majesty, the Senate. and the House of Representatives of the Commonwealth of Australia, as follows:—

PART I.—PRELIMINARY.

Short title.

1. This Act may be cited as the Australian Industries Preservation Act 1906.

Division of Act.

2. This Act is divided into Parts as follows:—

Part I.—Preliminary.

Part II.—Repression of Monopolies.

Part III.—Prevention of Dumping.

Interpretation.

3. In this Act, unless the contrary intention appears—

“Commercial Trust” includes a combination, whether wholly or partly within or beyond Australia, of separate and independent persons (corporate or unincorporate) whose voting power or determinations are controlled or controllable by—

(a) the creation of a trust as understood in equity, or of a corporation, wherein the trustees or corporation hold the interests, shares, or stock of the constituent persons; or

(b) an agreement; or

(c) the creation of a board of management or its equivalent; or

(d) some similar means,

and includes any division, part, constituent person, or agent of a Commercial Trust.

“Inadequate remuneration for labour” includes inadequate pay or excessive hours or any terms or conditions of labour or employment unduly disadvantageous to workers;

“Person” includes corporation and firm and a Commercial Trust.


PART II.—REPRESSION OF MONOPOLIES.

Restraint of inter-State or external trade and destruction of industries.

Cf. U.S. Sherman Act 1890 s. 1.

4.—(1.) Any person who, either as principal or as agent, makes or enters into any contract, or is or continues to be a member of or engages in any combination, in relation to trade or commerce with other countries or among the States—

(a) with intent to restrain trade or commerce to the detriment of the public; or

(b) with intent to destroy or injure by means of unfair competition any Australian industry the preservation of which is advantageous to the Commonwealth, having due regard to the interests of producers, workers, and consumers,

is guilty of an offence.

Penalty: Five hundred pounds.

(2.) Every contract made or entered into in contravention of this section shall be absolutely illegal and void.

Restraint of trade and destruction of industries by corporations.

5.—(1.) Any foreign corporation, or trading or financial corporation formed within the Commonwealth, which, either as principal or agent, makes or enters into any contract, or engages or continues in any combination—

(a) with intent to restrain trade or commerce within the Commonwealth to the detriment of the public, or

(b) with intent to destroy or injure by means of unfair competition any Australian industry the preservation of which is advantageous to the Commonwealth, having due regard to the interests of producers, workers, and consumers,

is guilty of an offence.

Penalty: Five hundred pounds.

(2.) Every contract made…

Overview

The Australian Industries Preservation Act 1906 was enacted by the Parliament of Australia to address the problem of destructive monopolies and the unfair competition that threatened the preservation of Australian industries. This legislation was introduced to safeguard the interests of producers, workers, and consumers within the Australian market by imposing restrictions on anti-competitive practices. The primary objectives include preventing the restraint of trade and commerce, prohibiting monopolistic activities, and curbing unfair competition, particularly by foreign corporations and commercial trusts. The Act empowers the Attorney-General to initiate legal proceedings to restrain contracts or combinations that are detrimental to trade, and it provides for substantial penalties and the possibility of treble damages for those injured by such practices. Additionally, the Act mandates the Comptroller-General to certify instances of unfair competition to the Minister, who may refer the matter to a Justice of the High Court for investigation and determination, thereby ensuring that imports do not unfairly harm Australian industries.

Scope and Application

The Australian Industries Preservation Act 1906 applies to all persons, including individuals, corporations, and firms, and extends to encompass any commercial trusts, which are defined as combinations of separate and independent persons whose voting power or determinations are controlled or controllable by various means such as the creation of a trust, agreement, or board of management. The Act has a broad jurisdictional reach as it pertains to trade and commerce both within Australia and with other countries, focusing on the repression of monopolies and prevention of unfair competition detrimental to Australian industries. The Act's provisions apply to both foreign and domestic corporations, and trading or financial corporations formed within Australia, prohibiting contracts or combinations that restrain trade, destroy industries through unfair competition, or attempt to monopolize trade or commerce. Additionally, the Act covers conduct occurring both within and outside Australia if such acts would constitute an offence if done within the country. The Act provides for specific exclusions and exemptions where necessary, such as when the majority of workers in an industry do not receive adequate remuneration or are subject to unfair terms or conditions of labour or employment. The application and enforcement of the Act may be extended or restricted through subordinate instruments such as regulations or orders made by the relevant authorities, ensuring its adaptability and precision in addressing contemporary challenges.

Key Provisions

  • The Australian Industries Preservation Act 1906 (C1906A00009) contains key provisions aimed at preserving Australian industries, repressing monopolies, and preventing unfair competition. Section 4 prohibits any person from entering into contracts or combinations intended to restrain inter-state or external trade to the detriment of the public or to destroy or injure Australian industries through unfair competition. Section 5 similarly prohibits corporations from engaging in such activities within the Commonwealth. Section 6 defines unfair competition, particularly in cases involving commercial trusts, inadequate remuneration for labour, substantial disorganization in industry, or exclusionary practices such as rebates or discounts. Sections 7 and 8 address the monopolization of trade, with penalties of up to five hundred pounds for such offences.
  • The Act imposes several obligations on parties and entities it governs. For example, Section 9 makes it an offence to aid, abet, counsel, or procure the commission of any offence against the Act. Section 10 allows the Attorney-General to seek injunctions to restrain contracts or combinations that restrain trade or injure Australian industries. Section 11 permits individuals injured by contravention of the Act to sue for treble damages. Section 14 mandates that criminal proceedings can only be initiated by the Attorney-General or an authorized person, while civil proceedings require the Attorney-General's written consent. Section 15 requires parties to a contract or combination to lodge a statutory declaration with the Attorney-General detailing the terms and purposes of the agreement, with an innocent intent presumption if the declaration is accurate and complete.
  • Breach of the Act can result in significant consequences. For instance, Sections 4, 5, 7, and 8 impose penalties of up to five hundred pounds for monopolistic or restrictive trade practices. Section 9 carries the same penalty for aiding and abetting these offences. Section 11 allows for the recovery of treble damages for injuries caused by such violations. Additionally, Section 26 imposes a penalty of up to one hundred pounds or twelve months' imprisonment for wilfully making false statements or misleading the Comptroller-General regarding actions or proceedings under the Act. Convictions under Section 26 may also result in the offender being ordered to pay part or all of the importer’s costs if the importer is found in their favour.

Legal classification tags

Area of Law
Competition Law
Commercial Law
Instrument
Act
Concepts
Definitions & Interpretation
Offence Provisions
Civil Penalty Provisions
Prohibited Conduct

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.