Overview

The Competition and Consumer (Price Inquiries) Amendment Direction 2020 was introduced to extend the completion periods for two specific inquiries under the Competition and Consumer Act 2010. These inquiries, one into the market for the supply of home loans and the other into water markets in the Murray-Darling Basin, were initially directed by the Treasurer to the Australian Competition and Consumer Commission (ACCC). This legislative instrument was enacted to provide additional time for the ACCC to thoroughly investigate these critical markets, ensuring a comprehensive analysis and report. The direction was made under the authority of the Minister for Treasury and Finance, in alignment with the objectives of the Act to protect consumers and promote competition. The enacting body for this amendment was the Treasurer, who issued the direction to the ACCC. The policy objective was to allow for more detailed and considered reports on these significant market inquiries, which are vital for informing policy decisions and ensuring market integrity. By extending the reporting timelines, the government aimed to facilitate a more robust examination of the issues at hand, thereby contributing to better-informed regulatory and legislative actions.

Scope and Application

The Competition and Consumer (Price Inquiries) Amendment Direction 2020 applies to the Australian Competition and Consumer Commission (ACCC) in its role of conducting inquiries into specified matters as directed by the Treasurer. The geographic reach of this Direction is national, as it pertains to the supply of home loans across Australia and tradeable water rights within the Murray-Darling Basin, a matter of national significance. The Amending Direction extends the completion periods for two inquiries initially mandated under section 95H of the Competition and Consumer Act 2010. Specifically, it extends the final reporting date for the inquiry into the supply of home loans and alters the timing for the interim report on water markets in the Murray-Darling Basin. The Direction does not alter the substantive scope of the inquiries but modifies the timelines for reporting. Exemption from Regulation Impact Statement requirements was granted due to urgent and unforeseen events. The Amending Direction is a legislative instrument under the Legislation Act 2003 and is not subject to disallowance or sunsetting. It comes into effect the day after registration.

Key Provisions

The Competition and Consumer (Price Inquiries) Amendment Direction 2020 amends the timeframes for two inquiries under the Competition and Consumer Act 2010 (the Act). Section 95K of the Act allows the Minister to extend the completion period for an inquiry into specified matters, and this Amendment Direction extends the reporting deadlines for two inquiries. Specifically, the Amendment Direction extends the final reporting date for the price inquiry into the supply of home loans from 30 September 2020 to 30 November 2020 (section 1(1)). Additionally, it requires an interim report on water markets in the Murray-Darling Basin by 30 June 2020, and this interim report cannot be publicly released until authorised by the Treasurer in writing (section 1(2)). The obligations imposed on the Australian Competition and Consumer Commission (ACCC) under this Amendment Direction are to complete the revised inquiries within the new specified timeframes. The ACCC must submit the final report on the supply of home loans by 30 November 2020, and provide an interim report on water markets in the Murray-Darling Basin by 30 June 2020. Furthermore, the ACCC is prohibited from releasing the interim report on water markets publicly without written authorisation from the Treasurer (section 1(2)). There are no explicit offences or penalties outlined in the Amendment Direction itself; however, any failure by the ACCC to comply with the requirements could result in broader consequences under the Competition and Consumer Act 2010. While the Amendment Direction does not specify penalties, non-compliance with the Act's reporting requirements could lead to scrutiny, potential investigations, or other enforcement actions by the relevant authorities. It is important to note that the Amendment Direction is not subject to disallowance or sunsetting, as per section 17 of the Legislation Act 2003, and it comes into effect the day after registration. An exemption from Regulation Impact Statement requirements was granted by the Prime Minister, acknowledging the urgent and unforeseen nature of the events necessitating these amendments. The ACCC was consulted on the terms of the Amendment Direction in accordance with the Legislation Act 2003. Finally, a Statement of Compatibility with Human Rights, included in Attachment A, confirms that this Legislative Instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms.