Labor’s reforming merger laws that are fit for a modern economy

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The government’s reforms will make Australia’s approval system faster, stronger, simpler, more targeted and more transparent.

Already a subscriber?Economists know two big facts about mergers. On the upside, size can bring economies of scale. Larger companies can deploy their network to produce goods and services more efficiently.

There is too little available data on mergers and acquisitions in an age where companies themselves are relying heavily on data. There is too little available data on mergers and acquisitions in an age where companies themselves are relying heavily on data.Australia’s merger laws. Our proposal will make the merger approval system faster, stronger, simpler, more targeted and more transparent. By establishing a single administrative pathway, with the ACCC as the first instance decision-maker, we aim to make mergers more efficient – and make the economy more efficient too.

The Hilmer competition reforms covered areas such as electricity pricing and rail connectivity. They entailed detailed collaboration with states and territories. The result was one of the best decades of productivity growth in the post-war era. According to the Productivity Commission, the National Competition Policy reforms of the 1990s led to a permanent 2.5 per cent lift in GDP, equivalent to $5000 for every Australian household.

 

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