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

Administered by Department of the Treasury

Legislation au F2026L00769 In force Legislative Instrument

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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.

Overview

The Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026 was enacted by the Minister under the authority of the Competition and Consumer Act 2010 to address the significant harm to the Australian economy and consumers resulting from disruptions to global supply chains and international shipping transport due to conflicts in the Middle East and the Strait of Hormuz. This legislative instrument, introduced by the Parliament, aims to streamline processes for the Australian Competition and Consumer Commission (ACCC) to grant authorisations and class exemptions in exceptional circumstances. The declaration is considered to be in the public interest, facilitating timely responses to economic challenges without the need for prior consultation. The streamlined processes under sections 92D and 95AC of the Act empower the ACCC to act swiftly, thereby mitigating the adverse effects on the economy and consumers. This declaration is subject to disallowance and has a limited duration of six months from the day it commences.

Scope and Application

The Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026, made under section 95AE of the Competition and Consumer Act 2010, serves to declare exceptional circumstances that are causing significant harm to the Australian economy or Australian consumers. These circumstances, specifically identified as the disruptions to global supply chains due to conflicts in the Middle East starting in February 2026 and the disruptions to international shipping through the Strait of Hormuz, trigger streamlined processes for the Australian Competition and Consumer Commission (ACCC) to grant exceptional circumstances authorisations and class exemptions. The declaration is in the public interest, empowering the ACCC to act swiftly under sections 92D and 95AC of the Act. The declaration applies nationwide and is in force for six months from the day it commences, which is the day after it is registered on the Federal Register of Legislation. This legislative instrument does not require consultation prior to its issuance, recognising the urgency needed to address the declared exceptional circumstances. It is subject to disallowance and sunsetting provisions as per the Legislation Act 2003.

Key Provisions

Section 95AE of the Competition and Consumer Act 2010 (the Act) allows the Minister to make a declaration of exceptional circumstances, which triggers streamlined processes for the Australian Competition and Consumer Commission (ACCC) to grant authorisations and class exemptions. Section 5 of the Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026 (the Instrument) declares 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. This declaration empowers the ACCC to make determinations under either or both of sections 92D and 95AC of the Act. The Act imposes obligations on the Minister to consider whether exceptional circumstances exist, or are likely to exist, that are causing, or would cause, significant harm to the Australian economy or Australian consumers. The Minister must also consider whether making the declaration is in the public interest to empower the ACCC to make determinations for exceptional circumstances authorisations and class exemptions. The Minister is not required to undertake consultation prior to making the declaration due to the urgent need to resolve the exceptional circumstances. The Instrument is subject to disallowance and sunsetting under the Legislation Act 2003, and it commences the day after it is registered. Breaching the Act or the Instrument may result in civil or criminal consequences. The Act provides for various offences and penalties for breaches, such as authorisations without complying with the Act or providing false or misleading information. The maximum penalties for these offences vary depending on the offence and the circumstances. The Instrument does not specify any penalties for breach, but it is subject to the penalties and enforcement provisions of the Act. The Competition and Consumer (Exceptional Circumstances) (No. 1) Declaration 2026 is compatible with human rights as it does not engage any of the applicable rights or freedoms. The Instrument does not raise any human rights issues and is in accordance with the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011. The Minister has carefully considered the implications of the declaration on human rights and has determined that it does not engage any of the applicable rights or freedoms.

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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.