Overview

The Competition and Consumer (Monitoring of Prices, Costs and Profits) Repeal Direction 2014 was enacted to revoke a prior Direction given to the Australian Competition and Consumer Commission (ACCC) under the Competition and Consumer Act 2010, addressing the monitoring of prices, costs, and profits related to the supply of regulated goods by corporations and goods by liable entities in the context of the carbon tax scheme. This legislative instrument was introduced by the Minister for Small Business and issued under the authority of the Clean Energy Legislation (Carbon Tax Repeal) Act 2014, which received Royal Assent on 17 July 2014. The repeal of the Direction is due to the re-allocation of the ACCC's price monitoring functions under section 60G of the Competition and Consumer Act, as amended. The Direction was not subject to public consultation as it was considered a minor or machinery nature instrument, not substantially altering existing arrangements, and did not impose any regulatory change on affected businesses. This revocation aligns with the broader legislative intent to repeal the carbon tax scheme and ensure the ACCC's monitoring activities are consistent with the new legislative framework.

Scope and Application

The Competition and Consumer (Monitoring of Prices, Costs and Profits) Repeal Direction 2014 applies to the Australian Competition and Consumer Commission (ACCC), specifically revoking a previous Direction given to the ACCC under section 95ZE of the Competition and Consumer Act 2010. This previous Direction mandated the ACCC to monitor the prices, costs and profits related to the supply of regulated goods by corporations and goods by liable entities in the context of the carbon tax scheme. The repeal of this Direction is a direct result of the carbon tax scheme's repeal through the Clean Energy Legislation (Carbon Tax Repeal) Act 2014, which introduced new provisions for price monitoring under section 60G of the Competition and Consumer Act 2010. The repeal does not affect businesses as the price monitoring obligations have transitioned under the new legislative framework. The repeal Direction revokes the previous mandate given to the ACCC concerning the carbon tax scheme, thereby ensuring the ACCC's monitoring functions align with the current legislative changes.

Key Provisions

The main operative sections of this legislation, the Competition and Consumer (Monitoring of Prices, Costs and Profits) Repeal Direction 2014, involve the revocation of the price monitoring Direction given to the Australian Competition and Consumer Commission (ACCC) under section 95ZE of the Competition and Consumer Act 2010. This Direction, which was in effect from 1 March 2014, was intended to monitor prices, costs, and profits related to the supply of regulated goods by corporations and goods by liable entities, assessing the general effect of the carbon tax scheme in Australia. However, the Direction is now revoked as the price monitoring functions have been transferred to section 60G of the Competition and Consumer Act, as amended by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. The repeal Direction comes into effect on the day after it is registered on the Federal Register of Legislative Instruments. The Act imposes certain obligations on the ACCC, primarily concerning the monitoring and reporting of prices, costs, and profits relating to the supply of goods. However, following the Clean Energy Legislation (Carbon Tax Repeal) Act 2014, these monitoring functions have been reassigned to section 60G of the Competition and Consumer Act. The ACCC is now required to undertake these monitoring activities under the new legislative framework. This change ensures that the monitoring of prices and costs continues without imposing any additional regulatory burdens on affected businesses, as the price monitoring reporting obligations have seamlessly transitioned to the new section. In terms of breaches and penalties, the revocation of the Direction does not introduce new offences or penalties. The Clean Energy Legislation (Carbon Tax Repeal) Act 2014, which includes the revised provisions for price monitoring, was subject to extensive public consultation and was given Royal Assent on 17 July 2014. The repeal Direction itself does not impose any regulatory changes on businesses; instead, it aligns the monitoring activities with the updated legislative framework. Any potential breaches of the amended provisions would be subject to the penalties and consequences outlined in section 60G of the Competition and Consumer Act, which are not specified in the revocation Direction itself. The instrument is compatible with human rights as it does not engage any of the applicable rights and freedoms, particularly because the monitoring activities affect corporations rather than individuals. The Legislative Instrument underwent consultation with the ACCC and was deemed to be of minor or machinery nature, not necessitating public consultation. This ensures that the revocation of the Direction does not substantially alter existing arrangements and does not impose any additional regulatory burdens on businesses.