EXPLANATORY STATEMENT
Issued by the Authority of the Treasurer
Trade Practices Legislation Amendment Act (No. 1) 2006
Proclamation
Subsection 2(1) of the Trade Practices Legislation Amendment Act (No. 1) 2006 (the Act) provides that Schedule 1 to the Act commences on a day to be fixed by proclamation. However, if any of the provisions of Schedule 1 do not commence within six months of the date the Act receives the Royal Assent, then those provisions will commence on the first day after the end of that six month period. The Act received the Royal Assent on 6 November 2006.
The Proclamation fixes 1 January 2007 as the day on which Schedule 1 to the Act commences.
The Act makes amendments to the Trade Practices Act 1974 (the TPA) that implement the Government’s response to the Review of the Competition Provisions of the Trade Practices Act (the Dawson Review). The Act provides that Schedules 2 to 9 to the Act will commence at the same time as the provisions of Schedule 1. All other provisions of the Act have already commenced.
Schedule 1 to the Act creates a voluntary formal merger clearance system and provides for changes to the merger authorisation process. Schedules 2 to 9 to the Act implement various other amendments to the TPA including: providing for changes to the non‑merger authorisation process; creating a new collective bargaining notification regime; creating a defence for joint ventures in relation to exclusionary and price fixing arrangements; changing the way dual listed companies are treated; making changes to the notification and review processes, and treatment of related companies, in relation to exclusive dealings; strengthening the Australian Competition and Consumer Commission’s enforcement powers; and amending the penalties which may be imposed in relation to breaches of the TPA.