The proposed measure aims to streamline approvals and better target anti-competitive mergers
The Australian government has introduced major reforms to Parliament aimed at overhauling the country’s merger rules, marking one of the most significant changes to competition policy in nearly 50 years.
The Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 seeks to modernise Australia’s merger approval system, with a focus on faster, more efficient decision-making. The proposed reforms aim to better target anti-competitive mergers while allowing pro-competitive mergers to proceed more swiftly.
“This bill will bring Australia’s merger system into the 21st century and make it easier for the majority of mergers to be approved quickly, so the Australian Competition and Consumer Commission (ACCC) can focus on the minority that give rise to competition concerns,” said Federal Treasurer Jim Chalmers (pictured above).
“We understand that most mergers have genuine economic benefits and are an important feature of any healthy, open financial system, but some mergers can cause serious economic harm.”
Under the new regime, mergers exceeding certain thresholds will be subject to mandatory notification and review by the ACCC, which will act as the primary decision-maker on approvals.
The legislation outlines three key thresholds for review. First, mergers involving businesses with a combined Australian turnover of more than $200 million, where either the acquired business has turnover exceeding $50 million or the global transaction value is above $250 million, will be scrutinised.
Second, mergers involving large businesses with Australian turnover exceeding $500 million acquiring smaller businesses with turnover above $10 million will also be reviewed. Third, serial acquisitions by businesses with a combined Australian turnover of over $200 million, where cumulative acquisitions in the same market exceed $50 million in three years, or $10 million if a very large business is involved, will be subject to review.
These thresholds aim to allow the ACCC to concentrate its resources on mergers that pose the greatest risk to competition. The thresholds will be reviewed 12 months after implementation to ensure effectiveness, Chalmers said in a joint statement with Andrew Leigh, assistant minister for competition, charities and treasury.
The bill excludes land acquisitions related to residential property development and certain commercial property purchases to avoid overburdening the system. However, targeted notification requirements will apply to sectors identified as high risk, including supermarkets, fuel, liquor, and oncology radiology.
The government has also granted the treasurer the power to adjust these thresholds to address specific competition concerns, such as in the supermarket sector. This provision is intended to ensure that all supermarket mergers are reviewed to protect consumers from unfair price increases.
The new system is set to take effect on Jan. 1, 2026, with businesses able to make voluntary notifications under the new rules starting July 1, 2025.
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