Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025

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Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025

No. 59, 2025

 

 

 

 

 

An Act to separate the Australian Energy Regulator from the Australian Competition and Consumer Commission, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1—Main amendments

Competition and Consumer Act 2010

Schedule 2—Application, saving and transitional provisions

Part 1—Preliminary

Part 2—Application, saving and transitional provisions

Part 3—Transitional rules

 

 

 

Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025

No. 59, 2025

 

 

 

An Act to separate the Australian Energy Regulator from the Australian Competition and Consumer Commission, and for related purposes

[Assented to 6 November 2025]

The Parliament of Australia enacts:

1  Short title

  This Act is the Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

1 July 2026.

1 July 2026

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

  Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Main amendments

 

Competition and Consumer Act 2010

1  After subsection 6A(1)

Insert:

 (1AA) For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):

 (a) the Commission is a listed entity; and

 (b) the Chairperson is the accountable authority of the Commission; and

 (c) the following persons are officials of the Commission:

 (i) the Chairperson;

 (ii) the other members of the Commission;

 (iii) the associate members of the Commission;

 (iv) persons engaged under section 27; and

 (d) the purposes of the Commission include the functions conferred on the Commission by this Act.

2  Section 8AB

Repeal the section.

3  After section 28

Insert:

28A  Function of Commission in relation to providing resources to the AER

  In addition to any other functions conferred on the Commission, the Commission may provide the AER with supports and resources (including corporate and information technology resources) to assist in the administration of the AER.

4  Section 44AB

Insert:

AER State/Territory energy law means any of the following laws:

 (a) a uniform energy law that applies as a law of a State or Territory;

 (b) a law of a State or Territory that applies a law mentioned in paragraph (a) as a law of its own jurisdiction;

 (c) any other provisions of a law of a State or Territory that:

 (i) relate to energy; and

 (ii) are prescribed by the regulations for the purposes of this paragraph;

  being those provisions as in force from time to time.

5  After subsection 44AE(1)

Insert:

 (1A) For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):

 (a) the AER is a listed entity; and

 (b) the AER members are the accountable authority of the AER; and

 (c) the following persons are officials of the AER:

 (i) the AER members;

 (ii) the staff of the AER referred to in section 44AAC;

 (iii) persons assisting the AER referred to in section 44AACA;

 (iv) consultants engaged under section 44AACB; and

 (d) the purposes of the AER include the functions of the AER under Division 3 of this Part.

6  Paragraph 44AE(3)(a)

Before “not to be”, insert “to be a noncorporate Commonwealth entity, and”.

7  Paragraph 44AE(3)(b)

Omit “, and a part of the Commission”.

8  Sections 44AI to 44AJ

Omit “a State/Territory energy law” (wherever occurring), substitute “an AER State/Territory energy law”.

9  Section 44AK (heading)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

10  Section 44AK

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

11  Subsection 44AM(1) (note)

Repeal the note.

12  Subsection 44AP(1) (note)

Repeal the note.

13  Subsection 44AY(3) (note)

Repeal the note.

14  Subdivision B of Division 4 of Part IIIAA

Repeal the Subdivision, substitute:

Subdivision B—Staff of the AER etc.

44AAC  Staff of the AER

 (1) The staff of the AER must be persons engaged under the Public Service Act 1999.

 (2) For the purposes of the Public Service Act 1999:

 (a) the AER Chair and the APS employees assisting the AER Chair together constitute a Statutory Agency; and

 (b) the AER Chair is the Head of that Statutory Agency.

44AACA  Persons assisting the AER

 (1) The AER may be assisted by:

 (a) officers and employees of Agencies (within the meaning of the Public Service Act 1999), and of authorities of the Commonwealth, whose services are made available to the AER in connection with the performance of any of the AER’s functions; and

 (b) persons whose services are made available under arrangements made under subsection (2).

 (2) The AER may, on behalf of the Commonwealth, make an arrangement with the appropriate authority or officer of:

 (a) a State or Territory government; or

 (b) a State or Territory government authority;

under which the government or authority makes officers or employees available to the AER to perform services in connection with the performance of any of the AER’s functions.

 (3) An arrangement under subsection (2) may provide for the Commonwealth to reimburse a State or Territory with respect to the services of a person to whom the arrangement relates.

 (4) When performing services for the AER under this section, a person is subject to the directions of the AER.

44AACB  Consultants

 (1) The AER may, on behalf of the Commonwealth, engage persons to give advice to, and perform services for, the AER.

 (2) The terms and conditions of engagement are as determined by the AER.

15  Paragraph 44AAEA(1)(c)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

16  Section 44AAEC (heading)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

17  Paragraph 44AAEC(1)(a)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

18  Subsection 44AAEC(10)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

19  Subsections 44AAEC(10) and (11)

Omit “the State/Territory energy law” (wherever occurring), substitute “the AER State/Territory energy law”.

20  Subparagraph 44AAF(6)(a)(i)

Omit “, a person referred to in section 44AAC”.

21  After subparagraph 44AAF(6)(a)(i)

Insert:

 (ii) a member of the staff of the AER; or

 (iii) a person assisting the AER referred to in section 44AACA; or

 (iv) a consultant engaged under section 44AACB; or

22  Subparagraph 44AAF(6)(a)(ii)

Renumber as subparagraph (v).

23  Paragraph 44AAFA(2)(c)

Repeal the paragraph, substitute:

 (c) appear before:

 (i) the AER; or

 (ii) a specified member of the staff of the AER who is an SES employee or an acting SES employee; or

 (iii) a specified person assisting the AER, referred to in section 44AACA, who is an SES employee or an acting SES employee;

  to give any such evidence (either orally or in writing) and produce any such documents.

24  Section 44AAG

Omit “a State/Territory energy law” (wherever occurring), substitute “an AER State/Territory energy law”.

25  Paragraph 44AAH(b)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

26  Section 44AAH

Omit “an SES employee, or acting SES employee, assisting the AER as mentioned in section 44AAC”, substitute “a member of the staff of the AER who is an SES employee or acting SES employee”.

27  Subsection 44AAI(1)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

28  Part IIIAB

Repeal the Part.

29  Paragraph 155(1)(c)

Omit “or before an associate member of the Commission who is an AER member and who is specified in the notice,”.

30  After paragraph 155AAA(12)(lb)

Insert:

 (lc) the Australian Energy Regulator;

31  Paragraph 157A(1)(c)

Omit “the AER or”.

32  After paragraph 157A(1)(c)

Insert:

 or (d) a member of the staff of the AER, a person assisting the AER referred to in section 44AACA or a consultant engaged under section 44AACB;

33  Subsection 157A(2)

Omit “paragraph (1)(c)”, substitute “paragraph (1)(d)”.

34  Paragraph 158B(1)(a)

Omit “before the AER or a person assisting the AER”, substitute “before the AER, a member of the staff of the AER or a person assisting the AER”.

35  Paragraph 158B(1)(f)

Omit “, an associate member of the Commission who is an AER member”.

36  Subsection 158B(5)

Omit “, the associate member of the Commission who is an AER member”.

Schedule 2—Application, saving and transitional provisions

Part 1—Preliminary

1  Definitions

(1) In this Schedule:

ACCC Enterprise Agreement means the Australian Competition and Consumer Commission Enterprise Agreement 20242027 approved under the Fair Work Act 2009 on 28 March 2024, as in force immediately before the commencement day.

amending Act means the Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025.

commencement day means 1 July 2026.

(2) Expressions used in this Schedule that are defined for the purposes of the Competition and Consumer Act 2010 have the same meaning as in that Act.

Part 2—Application, saving and transitional provisions

2  Delegations

(1) This item applies in relation to a delegation if:

 (a) the delegation was made under section 44AAH of the Competition and Consumer Act 2010 before the commencement day; and

 (b) the delegation is in force immediately before the commencement day.

(2) The delegation continues in force (and may be dealt with), on and after the commencement day, as if it were a delegation made under section 44AAH of the Competition and Consumer Act 2010, as amended by the amending Act.

3  Transfer of documents to the AER

(1) This item applies to a document if:

 (a) immediately before the commencement day, the document was in the possession of the Commission; and

 (b) the document was:

 (i) given to or received by the Commission; or

 (ii) brought into existence;

  in relation to the performance of a function of the AER under Division 3 of Part IIIAA of the Competition and Consumer Act 2010.

(2) The documents may be transferred to the AER on or after the commencement day.

Note: Any documents transferred are Commonwealth records for the purposes of the Archives Act 1983.

4  Regulations prescribing State/Territory energy laws

(1) Regulations made for the purposes of paragraph (c) of the definition of State/Territory energy law in subsection 4(1) of the Competition and Consumer Act 2010, and in force immediately before the commencement day, also have effect, during the transitional period, as if those regulations had been made for the purposes of paragraph (c) of the definition of AER State/Territory energy law in section 44AB of the Competition and Consumer Act 2010, as amended by the amending Act.

(2) For the purposes of subitem (1), the transitional period is the period beginning at the start of the commencement day and ending immediately before regulations made for the purposes of paragraph (c) of the definition of AER State/Territory energy law in section 44AB of the Competition and Consumer Act 2010, as amended by the amending Act, take effect.

5  Enterprise Agreement

(1) The ACCC Enterprise Agreement:

 (a) continues, on and from the commencement day, to cover and apply to APS employees:

 (i) who it covered and applied to immediately before the commencement day; and

 (ii) who, on the commencement day, are members of the staff of the AER; and

 (b) covers and applies to APS employees who are at the classification levels covered by the ACCC Enterprise Agreement whose employment as a member of the staff of the AER commences on or after the commencement day.

(2) On and after the commencement day, the ACCC Enterprise Agreement covers and applies to the AER Chair as the Agency Head of the APS employees who are members of the staff of the AER.

(3) This item does not prevent the variation or termination of the ACCC Enterprise Agreement in accordance with law.

(4) This item does not prevent the terms and conditions of employment of APS employees who are members of the staff of the AER from being varied on or after the commencement day:

 (a) in accordance with those terms and conditions; or

 (b) by or under a law.

(5) This item does not affect the operation of section 58 of the Fair Work Act 2009.

Note: Section 58 of that Act deals with the interaction between one or more enterprise agreements.

6  References in Enterprise Agreement

(1) On and from the commencement day, the ACCC Enterprise Agreement has effect in relation to the AER as if:

 (a) a reference to the Chairperson were a reference to the AER Chair; and

 (b) a reference to the Australian Competition and Consumer Commission, or the ACCC, were a reference to the AER.

(2) To avoid doubt, this item does not prevent the ACCC Enterprise Agreement from being varied or terminated on or after the commencement day.

Part 3—Transitional rules

7  Transitional rules

(1) The Minister may, by legislative instrument, make rules prescribing matters:

 (a) required or permitted by this Schedule to be prescribed by the rules; or

 (b) necessary or convenient to be prescribed for carrying out or giving effect to this Schedule.

(2) Without limiting subitem (1), the rules may prescribe matters of a transitional nature (including prescribing any saving or application provisions) relating to:

 (a) the application of the ACCC Enterprise Agreement to members of the staff of the AER who are APS employees; or

 (b) the enactment of the amending Act.

(3) To avoid doubt, the rules may not do the following:

 (a) create an offence or civil penalty;

 (b) provide powers of:

 (i) arrest or detention; or

 (ii) entry, search or seizure;

 (c) impose a tax;

 (d) set an amount to be appropriated from the Consolidated Revenue Fund;

 (e) directly amend the text of the Competition and Consumer Act 2010 or the amending Act.

(4) This Schedule (other than subitem (3)) does not limit the rules that may be made for the purposes of subitem (1).

 

 

[Minister’s second reading speech made in—

Senate on 23 July 2025

House of Representatives on 30 October 2025]

(35/25)

 

 

Overview

The Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025, enacted by the Parliament of Australia, aims to separate the Australian Energy Regulator (AER) from the Australian Competition and Consumer Commission (ACCC), thereby addressing the need for distinct regulatory oversight of energy markets. The Act introduces amendments to the Competition and Consumer Act 2010 to facilitate the structural separation while ensuring continuity in regulatory functions and processes. It outlines provisions for the AER's new status as a non-corporate Commonwealth entity, establishes the framework for its staffing and operations, and specifies transitional arrangements to manage the separation effectively. The policy objective is to enhance the efficiency and effectiveness of energy regulation by creating a dedicated entity focused solely on energy markets.

Scope and Application

The Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025 applies to the separation of the Australian Energy Regulator (AER) from the Australian Competition and Consumer Commission (ACCC), taking effect from 1 July 2026. This Act affects the entities involved, namely the AER and the ACCC, by clarifying their roles, responsibilities, and operational structures. The geographic and jurisdictional reach of this Act is national, impacting entities and functions that operate under the Commonwealth jurisdiction. The Act includes provisions for the transfer of certain documents and the continuation of existing delegations, agreements, and regulations during the transition period. Notably, the Act provides specific exclusions for the Minister's power to make subordinate instruments, which cannot include creating offences, providing arrest or detention powers, imposing taxes, or setting appropriations from the Consolidated Revenue Fund. Furthermore, the Act ensures the transitional continuity of the ACCC Enterprise Agreement for the staff of the AER and preserves the application of existing State and Territory energy laws as AER State/Territory energy laws during the transitional period.

Key Provisions

The Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025 (hereafter referred to as the "Act") contains several key provisions primarily aimed at separating the Australian Energy Regulator (AER) from the Australian Competition and Consumer Commission (ACCC). These provisions are detailed in Schedule 1 of the Act. Section 1 of the Act introduces the separation of the AER from the ACCC, with specific amendments to the Competition and Consumer Act 2010 (Cth) (hereafter referred to as the "CCA Act") to reflect this change. For instance, Section 6A of the CCA Act is amended to specify that the ACCC is a listed entity for the purposes of the finance law, with the Chairperson acting as the accountable authority (Section 1(1AA)). Furthermore, Section 28A is inserted to allow the ACCC to provide the AER with supports and resources to assist in its administration. The Act also redefines the term "AER State/Territory energy law" (Section 4) and modifies the functions and roles of the AER and its staff (Sections 44AAC to 44AACB). The Act imposes several obligations and requirements on the parties and entities it governs. For example, Section 44AAC mandates that the staff of the AER must be persons engaged under the Public Service Act 1999, and Section 44AACA allows the AER to be assisted by officers and employees of agencies and authorities of the Commonwealth and by persons whose services are made available through arrangements with State or Territory governments. Additionally, Section 44AACB permits the AER to engage consultants to give advice and perform services. The Act also stipulates that the AER is a listed entity for finance law purposes, with its members acting as the accountable authority (Section 44AE(1A)). Regarding consequences for breach, the Act does not explicitly state offences, penalties, or civil/criminal consequences for non-compliance with its provisions. However, the transitional rules outlined in Schedule 2, Part 3, allow the Minister to make rules necessary for the effective implementation of the Act. These rules can cover transitional matters but cannot create offences, provide powers of arrest or detention, impose taxes, or directly amend the text of the CCA Act or the amending Act itself. The Act ensures that existing delegations, documents, and the Australian Competition and Consumer Commission Enterprise Agreement 2024-2027 continue to apply to the AER, subject to certain conditions and transitional provisions.

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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.