EXPLANATORY STATEMENT

Issued by authority of the Treasurer

Competition and Consumer Act 2010

Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026

Section 95AE of the Competition and Consumer Act 2010 (the Act) provides that the Minister may, by legislative instrument, make a declaration of exceptional circumstances. An exceptional circumstance declaration triggers the operation of streamlined processes for the ACCC to grant exceptional circumstances authorisations in section 92D and exceptional circumstances class exemptions in section 95AC of the Act.

The purpose of the Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026 (the Instrument) is to declare exceptional circumstances for the purposes of the Act. Subsection 95AE(1) of the Act provides that the Minister may make the declaration if the Minister is satisfied that:

•                 exceptional circumstances exist, or are likely to exist, that are causing, or would cause, significant harm to the Australian economy or Australian consumers; and

•                 making the declaration is in the public interest to empower the ACCC to make determinations for either, or both, exceptional circumstances authorisations under section 92D and exceptional circumstances class exemptions under section 95AC.

The term ‘exceptional circumstances’ is taken to have its natural and ordinary meaning. The term is not defined in the legislation so as not to limit the circumstances in which a declaration can be made.

Due to the often urgent need to resolve the exceptional circumstances that would be the subject of the declaration, the Act does not require the Minister to undertake consultation prior to making a declaration. This helps reduce the time involved for processes to grant exceptional circumstances authorisations and class exemptions.

After careful consideration, the Minister is satisfied that the disruptions to global supply chains arising from the conflicts in the Middle East commencing in February 2026 and the disruptions to international shipping transport through the Strait of Hormuz constitute exceptional circumstances that are causing significant harm to the Australian economy or Australian consumers, and that it is in the public interest to empower the ACCC to make determinations under either or both of, section 92D and section 95AC of the Act. This Instrument therefore declares the exceptional circumstances and is declaratory in nature.

Exceptional circumstance declarations are legislative instruments subject to disallowance and sunsetting under the Legislation Act 2003.

The Instrument commences the day after it is registered.

Details of the Instrument are set out in Attachment A.

A statement of Compatibility with Human Rights is at Attachment B.

ATTACHMENT A

Details of the Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026

Section 1 – Name

This section provides that the name of the instrument is the Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026 (the Instrument).

Section 2 – Commencement

This section provides that the Instrument commences on the day after the instrument is registered on the Federal Register of Legislation.

Section 3 – Authority

The Instrument is made under the Competition and Consumer Act 2010 (the Act).

Section 4 – Definitions

This section provides that the Act means the Competition and Consumer Act 2010.

To assist readers, an explanatory note in this section alerts readers that expressions have the same meaning in the Instrument as in the Act as in force from time to time, in accordance with paragraph 13(1)(b) of the Legislation Act 2003.

Section 5 – Declaration of exceptional circumstances

This section declares that for the purposes of subsection 95AE(1) of the Act, exceptional circumstances exist that are causing significant harm to the Australian economy or Australian consumers, and that it is in the public interest to empower Commission to make determinations under either or both of, section 92D and section 95AC of the Act.

The exceptional circumstances are declared to be the disruptions to global supply chains arising from the conflicts in the Middle East commencing in February 2026 and the disruptions to international shipping transport through the Strait of Hormuz.

Section 6 – Period of declaration

This section provides that the declaration in section 5 is in force for the period starting on the day this Instrument commences and ending 6 months after that day.

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026 (the Instrument) declares exceptional circumstances for the purposes of the Competition and Consumer Act 2010 (the Act).

Section 95AE of the Competition and Consumer Act 2010 (the Act) provides that the Minister may, by legislative instrument, make a declaration of exceptional circumstances. An exceptional circumstance declaration triggers the operation of streamlined processes for the ACCC to grant exceptional circumstances authorisations in section 92D and exceptional circumstances class exemptions in section 95AC of the Act.

After careful consideration, the Minister is satisfied that the disruptions to global supply chains arising from the conflicts in the Middle East commencing in February 2026 and the disruptions to international shipping transport through the Strait of Hormuz constitute exceptional circumstances that are causing significant harm to the Australian economy or Australian consumers, and that it is in the public interest to empower the ACCC to make determinations under either or both of, section 92D and section 95AC of the Act. This Instrument therefore declares the exceptional circumstances and is declaratory in nature.

Human rights implications

This Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Instrument is compatible with human rights as it does not raise any human rights issues.