Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2023

Administered by Department of the Treasury

Legislation au F2023L01470 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 2023

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 2023 (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 safe, sustainable, and efficient aviation sector. Price monitoring by the ACCC will complement its enforcement of competition and consumer law. A competitive airline industry helps to put downward pressure on prices and deliver more choice for Australians facing cost‑of‑living pressures..

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 air passenger transport service industry is defined by reference to the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC) published by the Australian Bureau of Statistics (1292.0), as in force at the time the Direction commenced. ANZSIC is used as a standard means of classifying business units into industry sectors. At the time the Direction was registered, this document was freely available on the Australian Bureau of Statistics’ website (http://www.abs.gov.au).

In accordance with section 17 of the Legislation Act 2003, the ACCC has been consulted on the terms of the Direction.

The 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 as it is a ministerial direction, and therefore executive control is intended. Similarly, the direction is intended to remain in place until it is repealed on 1 January 2027 or it is revoked by the Treasurer, and therefore it is appropriate that it not sunset.

Details of the Direction are set out in Attachment A.

A statement of Compatibility with Human Rights is at Attachment B.

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

The Office of Impact Analysis has been (OIA) has been consulted (OIA ref: OIA23‑05947) and agreed that an Impact Analysis is not required.

ATTACHMENT A

Details of the Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2023

Section 1 – Name

Section 1 provides that the name of the Direction is the Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2023 (the Direction).

Section 2—Commencement

Section 2 provides that Parts 1 and 2 of the Direction commenced on the day after it was registered on the Federal Register of Legislation. Part 3 of the Direction commences on 1 January 2027.

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, starting from the quarter ending on 31 March 2024.

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.

Section 8—Repeal

Section 8 states the Direction is automatically repealed on 1 January 2027.

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 (Price Monitoring—Domestic Air Passenger Transport) 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

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.

The Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2023 (the Direction) is a direction to 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 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.

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 Monitoring—Domestic Air Passenger Transport) Direction 2023, enacted under the authority of the Australian government, is a directive issued to the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs, and profits within the domestic air passenger transport services industry. This legislative instrument was introduced to address concerns about the competitive nature of the aviation sector and to ensure that the national interest is safeguarded through a sustainable and efficient industry. The policy objective behind this direction is to promote a competitive airline industry, which in turn is expected to exert downward pressure on prices and enhance consumer choice, particularly in the context of the current cost-of-living pressures faced by Australians. The Direction requires the ACCC to focus on domestic air passenger transport services, reporting on the monitoring of these aspects quarterly to the Treasurer over a three-year period. This Direction is grounded in the Competition and Consumer Act 2010, which empowers the Minister to issue such directions. It was crafted to complement the ACCC's enforcement of competition and consumer laws. The Direction is not subject to disallowance or sunset clauses, as it is intended to remain in effect until explicitly repealed or until it reaches its automatic repeal date of 1 January 2027. The Direction's compatibility with human rights has been affirmed, ensuring that it does not conflict with the rights and freedoms recognised under international human rights instruments.

Scope and Application

The Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2023 is a directive issued under subsection 95ZE(1) of the Competition and Consumer Act 2010. It mandates the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs, and profits related to the supply of goods and services by entities within the air passenger transport services industry. The Direction is specifically focused on domestic air passenger transport services, requiring the ACCC to give special consideration to these services. The monitoring is set to occur over a period of three years, with quarterly reports to be submitted to the Treasurer beginning from the quarter ending on 31 March 2024. This legislative instrument aims to align with the government's policy that Australia's national interest is best served through a safe, sustainable, and efficient aviation sector, while also ensuring that a competitive airline industry aids in reducing prices and providing more choices for consumers, particularly those facing cost-of-living pressures. The Direction is not subject to disallowance and does not have a sunset clause, indicating the intent for it to remain in effect until repealed on 1 January 2027 or revoked by the Treasurer.

Key Provisions

The Competition and Consumer (Price Monitoring—Domestic Air Passenger Transport) Direction 2023 (the Direction) provides the Australian Competition and Consumer Commission (ACCC) with a mandate to monitor prices, costs and profits in the air passenger transport services industry. Specifically, under Section 6, the ACCC is directed to conduct this monitoring for a period of three years, with quarterly reports to the Treasurer starting from the quarter ending on 31 March 2024. Furthermore, Section 7 requires the ACCC to give special consideration to the monitoring of domestic air passenger transport services and related goods and services. The Direction also defines the industry in question by reference to the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC), ensuring a clear framework for the monitoring activities. The obligations imposed by the Direction on the ACCC are significant. Under Section 6, the ACCC must systematically monitor prices, costs, and profits within the air passenger transport services industry, with a specific emphasis on domestic services as stipulated in Section 7. This involves collecting and analysing relevant data to assess market dynamics, ensuring that the information gathered is comprehensive and focused on the defined industry sectors. Additionally, the ACCC is required to produce detailed quarterly reports on its findings, providing transparency and accountability in its monitoring activities. In terms of compliance and enforcement, the Direction does not explicitly outline specific offences or penalties for non-compliance. However, the failure to comply with the Direction could potentially lead to scrutiny and intervention by the relevant authorities under the Competition and Consumer Act 2010. The implications of non-compliance could include reputational damage, loss of public trust, and potential legal repercussions under broader competition and consumer laws. While the Direction itself does not specify maximum penalties, any resultant actions taken under the Act could impose significant financial penalties and other sanctions on the ACCC or the entities involved in the air passenger transport services industry.

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Competition Law
Instrument
Direction
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
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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.