EXPLANATORY STATEMENT
Issued by authority of the Assistant Minister for Competition, Charities and Treasury
Competition and Consumer Act 2010
Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023
Section 95H of the Competition and Consumer Act 2010 (the Act) provides that the Minister may require the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into a specified matter or matters.
Subsection 95J(6) provides that the Minister may give such directions as they think fit into the holding of the inquiry and matters to be taken into consideration of the inquiry.
On 28 October 2022, the Treasurer provided a direction to the ACCC under subsection 95H(1) of the Act, requiring the ACCC to hold a price inquiry into approved child care services and to provide an interim report to the Treasurer by no later than 30 June 2023 and a final report to the Treasurer by no later than 31 December 2023.
The Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023 (the Amending Direction) is made under subsection 95J(6) of the Act and subsection 33(3) of the Acts Interpretation Act 1901.
The purpose of the Amending Direction is to alter the interim report requirements for the child care price inquiry.
The amendments at Schedule 1 to the Amending Direction provide that ACCC must give the Treasurer a first interim report on the inquiry by 30 June 2023 and a second interim report on the inquiry by 30 September 2023.
In accordance with section 17 of the Legislation Act 2003, the ACCC has been consulted on the terms of the Amending Direction.
The Amending Direction is a legislative instrument for the purposes of the Legislation Act 2003. In accordance with item 2 of the table in section 9 and item 3 of the table in section 11 of the Legislation (Exemptions and Other Matters) Regulation 2015, the instrument is not disallowable and does not sunset as it is a direction by a Minister to a person or body. It is appropriate that this instrument is not disallowable or subject to sunsetting as it is a ministerial direction, and therefore executive control is intended.
The Amending Direction commences the day after the instrument is registered.
A statement of Compatibility with Human Rights is at Attachment A.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023
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
Section 95H of the Competition and Consumer Act 2010 (the Act) provides that the Minister may require the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into a specified matter or matters.
On 28 October 2022, the Treasurer provided a direction to the ACCC under subsection 95H(1) of the Act, requiring the ACCC to hold an inquiry into the market for the supply of child care services.
The Competition and Consumer Amendment (Price Inquiry—Child Care) Direction 2023 (the Amending Direction) alters the interim report requirements for the child care price inquiry.
The amendments at Schedule 1 to the Amending Direction provide that ACCC must give the Treasurer a first interim report on the inquiry by 30 June 2023 and a second interim report on the inquiry by 30 September 2023.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023 was enacted to amend the interim report requirements for the child care price inquiry. This legislative instrument was introduced to address the need for a more timely and structured reporting process during the inquiry into the market for the supply of child care services. The direction was made under the authority of the Assistant Minister for Competition, Charities and Treasury, and it amends the Competition and Consumer Act 2010. The primary policy objective of this direction is to ensure that the Australian Competition and Consumer Commission (ACCC) provides two interim reports to the Treasurer, one by 30 June 2023 and another by 30 September 2023, in addition to the final report by 31 December 2023. This is intended to facilitate a more comprehensive and timely understanding of the child care market, thereby enabling informed decision-making by policymakers.
Scope and Application
The Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023 applies to the Australian Competition and Consumer Commission (ACCC) in its role of conducting a price inquiry into the approved child care services market. The amendment modifies the interim reporting requirements for this inquiry, mandating the ACCC to submit an initial interim report to the Treasurer by 30 June 2023 and a second interim report by 30 September 2023. The geographic scope of the inquiry is national, as it pertains to the Australian market for child care services. There are no stated exclusions or exemptions from the inquiry's purview within the provided text, and no specific thresholds are mentioned. The application of this direction is limited to the terms set out in the Amending Direction, which is not subject to disallowance or sunsetting, as it constitutes a ministerial direction intended to maintain executive control. The Amending Direction takes effect on the day after it is registered, and the changes it introduces are confined to the interim reporting timeline for the child care price inquiry.
Key Provisions
Section 95H of the Competition and Consumer Act 2010 allows the Minister to require the Australian Competition and Consumer Commission (ACCC) to hold an inquiry into specified matters, including the market for the supply of child care services. This legislative provision empowers the Minister to initiate an investigation into potentially problematic areas of competition, market conduct, or consumer protection within a particular industry. The inquiry is a tool used to gather information and analysis that can inform regulatory action or policy development.
The Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023 modifies the reporting requirements for the child care price inquiry. Under this direction, the ACCC must now submit a first interim report to the Treasurer by 30 June 2023 and a second interim report by 30 September 2023. This change aims to provide the Treasurer with more timely updates on the inquiry's progress and findings. These interim reports are crucial for maintaining transparency and ensuring that stakeholders have access to current information as the inquiry unfolds.
The obligations imposed on the ACCC by this direction are clear and specific. The ACCC is required to conduct the inquiry in accordance with the Minister's direction and to deliver two interim reports at the specified deadlines. The first interim report, due by 30 June 2023, must include an initial analysis of the data collected so far, while the second interim report, due by 30 September 2023, should provide further insights and updates on the inquiry's progress. These deadlines are strict, and failure to comply could lead to significant consequences.
There are no explicit offences, penalties, or consequences outlined in the Amending Direction for failure to meet the interim report deadlines. However, the importance of these deadlines suggests that non-compliance could have serious implications for the ACCC. Given the legislative context, it is likely that the government would view late submissions as a failure to fulfil a ministerial direction, potentially leading to reputational damage, scrutiny, or further directives from the government. While specific penalties are not detailed, the indirect consequences of not meeting these deadlines could be substantial.