Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020

Administered by Department of the Treasury

Legislation au F2020L00763 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Treasurer

Competition and Consumer Act 2010

Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020

Subsection 95ZE(1) of the Competition and Consumer Act 2010 (the Act) provides that the Minister may give the Australian Competition and Consumer Commission (ACCC) a written direction to monitor prices, costs and profits relating to the supply of goods or services by persons in an industry, and to give the Minister reports on the monitoring. Subsection 95ZH(1) of the Act provides that the Minister may also give the ACCC a written direction to give special consideration to matters in exercising the ACCC’s powers and performing the ACCC’s functions under Part VIIA of the Act.

The purpose of the Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020 (the Direction) is to require the ACCC to monitor prices, costs and profits relating to the supply of goods or services by persons in the air passenger transport services industry. The Direction requires the ACCC to give special consideration to monitoring the supply of domestic air passenger transport services, and related goods and services.

The Direction gives effect to the Government’s policy that Australia’s national interest is best served through having a sustainable, competitive aviation sector. Price monitoring by the ACCC will assist in protecting competition in the domestic air passenger market, for the benefit of all Australian airline travellers.

The Direction requires the ACCC to monitor prices, costs and profits for a period of three years, and to report to the Treasurer at least once every quarter on the monitoring during that period.

The Direction has been developed in consultation with the Australian Competition and Consumer Commission.

Details of the Direction are set out in Attachment A.

The Direction is a legislative instrument for the purposes of the Legislation Act 2003. However, the Direction is not subject to disallowance or sunsetting.

The Direction commenced on the day after it was registered on the Federal Register of Legislation.

ATTACHMENT A

Details of the Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020

Section 1—Name of the Direction

Section 1 provides that the name of the Direction is the Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020 (the Direction).

Section 2—Commencement

Section 2 provides that the Direction commenced on the day after it was registered on the Federal Register of Legislation.

Section 3—Authority

Section 3 provides that the Direction was made under the Competition and Consumer Act 2010 (the Act).

Section 4—Definitions

Section 4 provides definitions of expressions used in the Direction.

The industry referred to in section 6 is defined by reference to the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC) published by the Australian Bureau of Statistics (1292.0). ANZSIC is used as a standard means of classifying business units into industry sectors.

The references to ANZSIC in this instrument are to that document as it was revised and in force at the time the Direction commenced. At the time the Direction was registered, this document was freely available on the Australian Bureau of Statistics’ website (http://www.abs.gov.au).

Section 5—Object

Section 5 states the object of the Direction, which is to monitor prices, costs and profits relating to the supply of domestic air passenger transport services, and of related goods and services.

Section 6—Commission to monitor prices

Section 6 directs the ACCC to monitor prices, costs and profits relating to the supply of goods or services by persons in the air passenger transport service industry.

The ACCC is required to monitor prices, costs and profits for a period of three years, and to report to the Treasurer on the monitoring at least once every quarter that starts during that period.

This direction is given under subsection 95ZE(1) of the Act.

Section 7—Direction to give special consideration to specified matters

Section 7 directs the ACCC to give special consideration to monitoring the prices, costs and profits relating to the supply of domestic air passenger transport services, and of related goods and services, when exercising its powers and performing its functions under the Act as required by the direction in section 6. Section 7 also directs the ACCC to give special consideration to the object of the Direction.

The direction in section 7 is given because it is intended that the ACCC monitors domestic air passenger transport services, rather than both domestic and international services. If a service includes both a domestic flight and an international flight, that service will be treated as a domestic service for the purposes of the Direction, but only to the extent the service relates to the domestic flight.

This direction is given under subsection 95ZH(1) of the Act.

Overview

The Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020, issued under the authority of the Treasurer, was introduced to address the need for enhanced scrutiny within the domestic air passenger transport services industry. The Direction was developed in line with subsection 95ZE(1) of the Competition and Consumer Act 2010, empowering the Minister to instruct the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs, and profits in the industry, and to report findings to the Minister. Additionally, the Direction leverages subsection 95ZH(1) to direct the ACCC to give special consideration to domestic air passenger transport services when exercising its powers and performing its functions under Part VIIA of the Act. The primary objective is to foster a sustainable and competitive aviation sector, thereby ensuring that the national interest is upheld and competition is preserved for the benefit of all Australian airline travellers. This initiative mandates the ACCC to conduct a comprehensive three-year monitoring program, with quarterly reporting to the Treasurer.

Scope and Application

The Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020 applies to the Australian Competition and Consumer Commission (ACCC) in its role of monitoring prices, costs, and profits relating to the supply of goods or services by entities within the air passenger transport services industry. Specifically, the Direction mandates the ACCC to focus on domestic air passenger transport services and related goods and services. This monitoring is conducted under the authority granted by the Competition and Consumer Act 2010, which empowers the Minister to issue such directions to the ACCC. The geographic scope of this Direction is national, as it pertains to services provided within Australia. It is noteworthy that this Direction is not subject to disallowance or sunsetting provisions, ensuring its continued effect without the need for periodic legislative renewal. The Direction commenced on the day following its registration on the Federal Register of Legislation, thereby immediately taking effect.

Key Provisions

The Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2020 (the Direction) (sections 6 and 7) requires the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs and profits in the air passenger transport services industry. Specifically, Section 6 mandates the ACCC to monitor these aspects for a duration of three years, with quarterly reporting to the Treasurer. This obligation is to ensure that the ACCC can provide timely insights into market conditions and identify any anti-competitive practices. Section 7 further directs the ACCC to give special consideration to domestic air passenger transport services when exercising its powers and performing its functions under the Act. This special consideration ensures that the focus remains on domestic services, even when a flight includes both domestic and international segments, treating the service as domestic only for the portion that pertains to the domestic flight. The obligations imposed on the ACCC under the Direction are significant. The ACCC must collect and analyse data on prices, costs and profits within the air passenger transport services industry, with a particular emphasis on domestic services. This involves gathering comprehensive data from industry participants and using it to prepare detailed reports every quarter. The ACCC must also ensure that these reports are submitted to the Treasurer in a timely manner, providing a clear and transparent overview of the industry's performance. Furthermore, the ACCC is required to give special consideration to the object of the Direction, ensuring that its monitoring efforts are aligned with the policy goal of maintaining a sustainable and competitive aviation sector in Australia. Breach of the obligations set out in the Direction could result in serious consequences. While the Direction itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for non-compliance, failure to meet the reporting requirements or to give special consideration as directed could potentially lead to scrutiny and enforcement action by the Minister or other regulatory bodies. Under the Competition and Consumer Act 2010, there are provisions for penalties in the case of non-compliance with directions issued under the Act. Such penalties may include fines and, in severe cases, legal action. The exact penalties would depend on the nature and extent of the breach, but they could be substantial given the importance of the Direction's objectives in protecting competition and consumer interests in the domestic air passenger transport market.

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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.