The House Standing Committee on Economics released its report Better Competition, Better Prices: Report on the inquiry into promoting economic dynamism, competition and business formation on 26 March 2024. After presentation and publication, a transposition error was identified.

Media release issue date: Thursday, 4 April 2024

The House Standing Committee on Economics released its report Better Competition, Better Prices: Report on the inquiry into promoting economic dynamism, competition and business formation on 26 March 2024. After presentation and publication, a transposition error was identified in Recommendation 33 (at paragraph 6.106) resulting in repeated text in the first dot point of the recommendation. The recommendation, as adopted by the Committee, is meant to read: Recommendation 33 6.106   That the Treasury Competition Policy Taskforce examine mechanisms to increase consumer engagement                       with mortgages and deposit products. Initially, this could take the form of pilots of one or more of the                             following: A requirement that banks reach out to variable rate consumers with older home loans (3 or more years) once per year to review their product, prompting them to consider both price and non-price factors. A requirement that banks should notify the base interest rate at the end of the introductory period where a retail deposit product is offered. A requirement that banks should clearly notify retail deposit holders of changes to their interest rates, changes to the eligibility requirements for a bonus interest rate and, where practicable, alert customers when they are approaching a threshold for eligibility for a bonus interest rate (e.g. a minimum balance level).     That APRA provide an independent benchmark (or series of benchmarks) for variable rates for                                  new/switching customers over the preceding 12 months. That this benchmark be published for use by                  mortgage brokers and financial advisers to improve their capacity to contact new clients to improve                     churn rates. The online version of the report will be updated once a corrigendum can be presented in the House in a future sitting week. Further information on the inquiry as well as a copy of the report can be obtained from the inquiry website. Media inquiries Committee Chair Dr Daniel Mulino MP 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can read submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.

The House Standing Committee on Economics has released its report from the inquiry into promoting economic dynamism, competition and business formation. The report’s name, Better Competition, Better Prices, emphasises the outcomes the Committee is seeking through its 44 recommendations.

Media release issue date: Wednesday, 27 March 2024

The House Standing Committee on Economics has released its report from the inquiry into promoting economic dynamism, competition and business formation. The report’s name, Better Competition, Better Prices, emphasises the outcomes the Committee is seeking through its 44 recommendations. Dr Daniel Mulino MP, Chair of the Committee, said: “The Committee’s wide-ranging and comprehensive report is the culmination of 14 months of evidence gathering and analysis from numerous sectors of the economy. The Committee received more than 60 submissions from stakeholders across industry and government and followed up with many stakeholders and other experts at a series of 18 public hearings. “Thanks to this evidence and interaction with industry and regulators, the Committee has pinned down some of the key factors that have led to the stalling of productivity growth in Australia over the past decade. “Australia has had one of the highest standards of living in the world thanks to decades of high productivity. However, the data is showing declining competition and dynamism as measured by the high market share of leading firms, the profit margins in key sectors, and a declining rate of firm entry and exit in some sectors. “Australia needs to lift its game when it comes to competition and economic dynamism because together they drive innovation, which in turns drives productivity. In the short term, this will put downward pressure on prices, thereby improving the cost of living - and it will place a check on poor corporate behaviour towards consumers. “If we don’t tackle this challenge, future generations will also be far poorer than they might have been,” Dr Mulino said. Dr Mulino said it was pleasing that there had been action in relation to a number of issues raised throughout the inquiry. “This includes progress on mergers law; the regulation and measurement of non-compete clauses; the regulation of landing slots at Sydney Airport; and the announcement of a regulatory grid for the financial services sector.” Dr Mulino said the report put forward practical steps that would help turn things around, including changes to the regulatory settings regarding mergers law and non-compete clauses. “Furthermore, government spends tens of billions of dollars procuring services. The efficiency and effectiveness of this procurement could be improved by including more social enterprises and SMEs and through better designed auctions and panels. The report also sets out options for introducing behavioural prods in the banking sector, as outlined by the ACCC’s Retail Deposit Inquiry report, to ensure fairer outcomes for consumers. “Additional mortgage products for consumers could also be considered, such as tracker mortgages and residential backed mortgage securities,” Dr Mulino said. Some of the key outcomes included in the Committee’s 44 recommendations are: Recommendations aimed at bolstering the economic and market data collected by government agencies, the ability for those agencies to use that data, as well as access to that data by appropriate third parties, with appropriate controls; Recommendations to improve competition law and policy, including reforms to the mergers framework and non-compete clauses; Recommendations to reduce red tape for growing businesses and endeavours and to reduce regulatory impact or enable better analysis of potential impact, as well as enable the Government to stimulate market growth in areas of need and improve access to government procurement, services and data for wider market players; Recommendations for pilot programs and improvement in mortgage and deposit products from banks, as well as improved regulation of the financial services market; and Recommendations for improvement in digital platforms, the aviation sector, retail markets, and interoperability of markets within the economy. “Australia is at a crossroads. This report identifies the many opportunities - at an economy-wide level and at a sectoral level - for meaningful reform that not only produces immediate benefits for consumers but that also delivers higher standards of living for future generations. I commend the recommendations and the information that informed them to both governments and the market for a way forward for the betterment of the Australian economy,” Dr Mulino said. Further information on the inquiry as well as a copy of the report can be obtained from the inquiry website. Media inquiries Committee Chair Dr Daniel Mulino MP 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can read submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.

The House of Representatives Standing Committee on Economics will be rounding out its inquiry into promoting economic dynamism, competition and business formation with its next public hearing. The Australian Competition and Consumer Commission, National Competition Council, Treasury and the Productivity Commission will be appearing.

Media release issue date: Thursday, 14 September 2023

The House of Representatives Standing Committee on Economics will be rounding out its inquiry into promoting economic dynamism, competition and business formation with its next public hearing on 15 September 2023. The Australian Competition and Consumer Commission (ACCC), National Competition Council (NCC), Treasury and the Productivity Commission will be appearing. Committee chair Dr Daniel Mulino MP said that the public hearing will allow the committee to test ideas with experts from the ACCC, NCC, Treasury and the Productivity Commission. “The committee has heard a range of ideas and recommendations about how to boost healthy competition and productivity throughout this inquiry. The ACCC, NCC, Treasury and the Productivity Commission are key players in this area, so the committee will benefit from hearing their perspectives and testing ideas with them.” The committee will also hear from Meta, which will complete the Committee’s engagement with big tech. The committee has previously heard from Apple, Google and Amazon. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Friday, 15 September 2023 Time: 8.00am – 5.00pm Location: Videoconference The hearing will be broadcast live at aph.gov.au/live. Media inquiries Dr Daniel Mulino MP Electorate: (03) 9070 1974 Parliament: (02) 6277 4311 For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au www.aph.gov.au/economics

Apple, Amazon, Google, Meta and the OECD are among the organisations appearing over three days of hearings next week for the House Standing Committee on Economics’ Inquiry into promoting economic dynamism, competition and business formation.

Media release issue date: Friday, 25 August 2023

Apple, Amazon, Google, Meta and the OECD are among the organisations appearing over three days of hearings next week for the House Standing Committee on Economics’ inquiry into promoting economic dynamism, competition and business formation. Committee chair Dr Daniel Mulino MP said that competition experts from the Organisation for Economic Co-operation and Development would provide an interesting international perspective on key competition issues at Tuesday's hearing. The committee will also explore with the e61 Institute the prevalence of non-compete clauses and their effect on labour mobility and competition. “A recent survey showed that one in five Australian workers is subject to non-compete clauses, which suggests they are just as prevalent as in the United States, where it is proposed to ban such clauses,” Dr Mulino said. “It appears that such clauses are increasingly being used in ways other than intended – which is to protect legitimate business interests. The effect can be to stifle job mobility, which flows on to wages and productivity growth.” To round off its examination of the major supermarkets, the committee will hear from ALDI. Lion Australia and Carlton & United Breweries will also give evidence. The committee has previously heard evidence that Australia’s beer market is highly concentrated. On 29 August, the committee will hear from big tech players, including Google, Apple, Meta and Amazon, and Qantas, which will complete the committee’s engagement with major stakeholders in the aviation sector. Electronic conveyancing will also be on the agenda: Sympli will give evidence on 28 August while PEXA will appear on 29 August. The committee will also hear from Marriott Support Services on dynamism in care services. On 31 August, the committee will delve further into the financial sector, with peak body the Australian Banking Association, Australian-based investment manager Adamantem Capital, and the FinClear Group, an independent technology and infrastructure provider for financial markets giving evidence. The committee will also seek the Minerals Council of Australia’s views on key economic dynamism and competition themes in the resources sector. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Monday 28 August 2023 Time: 9.30 am to 2.30 pm AEST Location: Videoconference Date: Tuesday 29 August 2023 Time: 9.00 am to 5.00 pm AEST Location: Videoconference Date: Thursday 31 August 2023 Time: 9.00 am to 2.45 pm AEST Location: Videoconference The public hearing will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair, Dr Daniel Mulino MP 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can read submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.

The House Standing Committee on Economics will next focus on the aviation industry as part of its inquiry into promoting economic dynamism, competition and business formation.

Media release issue date: Monday, 21 August 2023

The House Standing Committee on Economics will next focus on the aviation industry as part of its inquiry into promoting economic dynamism, competition and business formation. Greg Medcraft, former Australian Securities and Investments Commission (ASIC) chair, will also discuss dynamism in the financial industry. At the next public hearing in Sydney on 23 August, 2023, the committee will hear from Rex Airlines, the Australian Airports Association, and the Sydney Airport Corporation.   The Committee will also hear from Greg Medcraft, chair of the Australian Finance Group and former chair of ASIC, to better understand competition and economic dynamism in the financial industry. Committee Chair Dr Daniel Mulino said: ‘Mr Medcraft also has extensive experience with the OECD in Paris and he has spoken regularly about how the dominance of Australia’s major banks has eroded competition in the banking sector. ‘Mr Medcraft has also discussed ways to improve competition in the residential mortgage market and the role that digital disruption, particularly blockchain, will have in improving the efficiency of global capital markets, so the committee looks forward to hearing from him,’ Dr Mulino said. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Wednesday 23 August 2023 Time: 10.00 am to 1.45 pm AEST Location: Corinthian Room, Sydney Masonic Centre The public hearing will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can read submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.

The House Standing Committee on Economics will next focus its attention on competition and dynamism in the supermarket, alcohol, and tech sectors, as well as in care services, as part of its inquiry into economic dynamism, competition and business formation. Peter Harris, former chair of the Productivity Commission, will also discuss competition in the domestic airline industry.

Media release issue date: Monday, 24 July 2023

The House Standing Committee on Economics will next focus its attention on competition and dynamism in the supermarket, alcohol, and tech sectors, as well as in care services, as part of its inquiry into economic dynamism, competition and business formation. Peter Harris, former chair of the Productivity Commission, will also discuss competition in the domestic airline industry.  The committee’s next set of public hearings will be held via videoconference on 25 and 26 July 2023. Committee Chair, Dr Daniel Mulino, said the committee looks forward to hearing from Coles, Woolworths, Metcash, the Australian Food and Grocery Council, and the National Farmers Federation. “The grocery retail sector is fundamental to the everyday lives of Australians. There are also high levels of market concentration in the sector, so it’s vital that we better understand the effects such concentration have on competition, particularly around price, for consumers. “The supermarket sector also has a strong hold on the packaged alcohol market, which again has implications for consumers around price and on smaller players in the sector. “So we will be probing this area as well,” Dr Mulino said, “especially with the local craft beer industry gaining in popularity. Australia’s independent brewers are renowned for their innovation so the committee is eager to ensure diversity in the beer industry and that our home-grown companies can continue to thrive. The committee will hear from Coopers and the Independent Brewers Association.’ Peter Harris, former chair of the Productivity Commission and author of the recent review into the Sydney Airport Demand Management Scheme, will also appear. “Peter will shed light on competition in Australia’s commercial aviation market and on the outlook for business dynamism. Epic Games and Free TV Australia will also appear at this week’s hearings to give their perspective on the impact of Big Tech companies on their business models and on competition in the online gaming and broadcasting sectors. Other companies appearing before the committee will be online platforms Mable and HireUp, which work in the disability and aged care sectors. Victorian Government Procurement will also appear, following on from appearances before the committee of social enterprises. “This will allow the committee to complete its assessments on competition and productivity in the care sector, which is often under-appreciated as a driver of employment and innovative service delivery within the broader economy,” Dr Mulino said. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Tuesday 25 July Time: 9.00 am to 2.45 pm AEST Location: Videoconference Date: Wednesday 26 July Time: 10.00 am  to 4.00 pm AEST Location: Videoconference The public hearing will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can read submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand side of the page.

Upcoming public hearings for the House Economics committee will focus on competition in the banking sector, aviation and social procurement as part of its inquiry into economic dynamism, competition and business formation.

Media release issue date: Thursday, 29 June 2023

Upcoming public hearings for the House Standing Committee on Economics will focus on competition in the banking sector, aviation, and social procurement as part of its inquiry into economic dynamism, competition and business formation. The public hearings will be held in Toowoomba on 30 June 2023, and on 4 and 5 July 2023 in Melbourne. Committee Chair, Dr Daniel Mulino, said that ‘Competition issues are present in many sectors of the economy. Aviation and banking are two key industries facing high levels of market concentration and barriers to entry for new businesses, including regulatory hurdles and requirements.’ ‘In the aviation space, the Committee looks forward to hearing from Virgin Australia and Bonza, the newest entrant to the market. Airlines have been the subject of considerable public commentary in recent months. The Committee looks forward to exploring issues of market power and competition.’ ‘On banking, the Committee will hear from more established banks—Macquarie Bank, and Bendigo and Adelaide Bank—as well as from the Customer Owned Banking Association and a range of customer-owned banks. The customer-owned banking model has existed in Australia for many decades and gives Australians real alternatives to the retail business model.’ In both Toowoomba and Melbourne, the Committee will also explore the social enterprise sector and procurement. Dr Mulino said ‘unless well-designed, procurement processes can favour incumbent and larger firms. Social enterprises and SMEs can provide Government with additional options that are both innovative and value for money, as well as adding competitive tension. The social enterprise sector is an exciting area that is not often considered in relation to competition, productivity and economic dynamism. Yet social enterprises—businesses that have a defined social, cultural or environmental purpose—operate in all sectors of the economy, enabling people from all backgrounds to contribute to the economy and flourish, and providing opportunities for more efficient government procurement.’ ‘The Committee will be hearing from peak body, the Alliance of Social Enterprise Networks Australia, and the Victorian and Queensland Governments, as well as from several social enterprises, on how working with social enterprises in the procurement process can increase opportunities for new businesses, diversify supply chains, drive competition, promote innovation and create opportunities for all levels of businesses to compete for Government work.’ The Committee also looks forward to hearing from the Victorian Chamber of Commerce and Industry in Melbourne, to better understand the competition challenges facing small business. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Friday 30 June Time: 9.00 am to 3.00 pm AEST Location: Toowoomba City Library, Toowoomba Date: Tuesday 4 July Time: 9.00 am to 2.45 pm AEST Location: Stamford Plaza Hotel, Melbourne Date: Wednesday 5 July Time: 9.00 am to 2.45 pm AEST Location: Stamford Plaza Hotel, Melbourne The public hearing will be broadcast live at www.aph.gov.au/live. Media enquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand side of the page.

The House of Representatives Standing Committee on Economics will hear from a range of experts in competition law, experimental economics and market design via videoconference as part of the committee’s inquiry into promoting economic dynamism, competition and business formation.

Media release issue date: Wednesday, 17 May 2023

The House of Representatives Standing Committee on Economics will hear from a range of experts in competition law, experimental economics and market design on Thursday 18 May via videoconference as part of the committee’s inquiry into promoting economic dynamism, competition and business formation. Committee Chair, Dr Daniel Mulino MP, said: “Innovative market designs have been shown to lead to life-changing, and even life-saving, results, so the committee is looking forward to hearing from pioneering economists in this field, including CalTech’s Professor Charlie Plott; UQ’s Professor Flavio Menezes and John Quiggin; and the University of Melbourne’s Centre for Market Design (Professors Simon Loertscher and David Byrne, and Gary Stoneham). Dr Mulino said that market design could lead to increases in quality of life while simultaneously providing better value for a range of government spending areas. “A local example is a bus transport pilot for students attending the Northern School of Autism. Students were travelling up to two hours each way and missing classes. The long travel times increased the students’ anxiety, which led to increased tension among families. “Market design economists used algorithms to devise a scheme that determined the optimal travel route; the optimal vehicle size; and the prices at which services were provided within the parameters of a maximum travel time of one hour each way. The result was happier children and families for no additional cost to government.” Dr Mulino said 'matching markets' was another type of market design – “and a great example is the kidney exchange system, which has saved many more lives following its implementation”. ‘‘Market design theory can be applied to Australia’s economy in a variety of ways — whether that be designing markets that are fair and efficient, mechanisms that encourage new entrants into the market and prevent collusion, as well as developing platforms and marketplaces that facilitate these transactions.” Market design can also substantially improve procurement outcomes. This could be of direct relevance to a number of quasi markets that have been established for the provision of social services. The committee has looked at a number of issues relating to market concentration and competition issues more broadly. Dr Mulino said that competition and merger law was another complex area, and that the committee was looking forward to hearing from former ACCC Chair Professor Allan Fels AO and other competition law experts, including Professor Deborah Healey (UNSW) and Dr Rhonda Smith (the University of Melbourne) on their experiences and ideas for ways to improve competition, foster economic dynamism and increase productivity. More details about the inquiry and upcoming public hearings, including the full terms of reference, are available on the committee’s website. Public hearing details Date: Thursday 18 May Time: 9.30 am to 2.45 pm AEST via VIDEOCONFERENCE The public hearing will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.

The House of Representatives Standing Committee on Economics will hear from strategic thinkers about competition on 2 May and from the tech sector on 3 May 2023 in two days of public hearings.

Media release issue date: Monday, 1 May 2023

The House of Representatives Standing Committee on Economics will hear from strategic thinkers about competition on 2 May and from the tech sector on 3 May 2023 in two days of public hearings. The hearings, part of the committee’s inquiry into promoting economic dynamism, competition and business formation, will be conducted by videoconference. Committee Chair, Dr Daniel Mulino MP, said: ‘There is substantial evidence that Australia’s economy has become more concentrated. Research has found that wages tend to be lower when fewer employers dominate the market.’ ‘Rates of business start-up and job switching have also declined, which is concerning because both are important factors in higher wages.’ ‘Furthermore, over the past year alone, our economy has experienced a number of supply chain shocks, in part because of the war in Ukraine, which speaks to the importance of economic resilience.’ ‘And competition is one way to build resilience – a diverse and dynamic economy is also a resilient economy that is better equipped to deal with unexpected shocks and adapt to the challenges of an uncertain world.’ ‘In a nutshell, less competition is associated with higher prices, fewer new businesses, less consumer choice, lower quality, less innovation and, ultimately, fewer jobs and less growth.’ ‘For all these reasons and more, it is really important that we set the scene and hear from economists and thinktanks from across the political spectrum about their ideas on a robust competition policy. We are fortunate to have in Australia a number of highly experienced economists who can provide this commentary.’ The committee will hear from several experts on 2 May, including e61, the Grattan Institute, the Institute of Public Affairs, former ACCC Chair Rod Sims, and UNSW economist Richard Holden. On 3 May the committee will hear from the tech sector, including the Tech Council of Australia, FinTech Australia and Microsoft. ‘Given the extraordinary pace and scale of technological change and its impact on businesses in this country, we need to hear from those at the cutting edge about the opportunities and risks for competition in sectors such as banking, energy, and retail, as well as across the broader economy.’ ‘We need to fully understand how regulation can keep up with the disruption resulting from technological change while also not stymieing innovation,’ Dr Mulino said. More details about the inquiry and upcoming public hearings, including the full terms of reference, are available on the committee’s website. Public hearing details Thinktanks and economists Date: Tuesday 2 May 2023 Time: 11.00 am to 4.00 pm Tech sector Date: Wednesday 3 May 2023 Time: 9.00 am to 2.30 pm Both public hearings will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand side of the page.

Australia’s competition landscape will be the focus of the House of Representatives Standing Committee on Economics’ public hearings with the Productivity Commission and the Australian Competition and Consumer Commission (ACCC) on 16 and 17 March 2023.

Media release issue date: Tuesday, 14 March 2023

Australia’s competition landscape will be the focus of the House of Representatives Standing Committee on Economics’ public hearings with the Productivity Commission and the Australian Competition and Consumer Commission (ACCC) on 16 and 17 March 2023. These are the first hearings for the committee’s new inquiry into promoting economic dynamism, competition and business formation. Committee Chair, Dr Daniel Mulino MP, said that ‘Healthy competition and stimulating productivity can enhance the wellbeing of all Australians. ‘Boosting productivity is a key driver of wages growth, while healthy competition can lead to higher quality goods and services, greater variety, lower prices, and more innovation.’ ‘The Productivity Commission and the ACCC are key players in these areas and a number of other issues that the committee will be exploring throughout this inquiry. Both organisations have done extensive work in this field, so the committee will benefit from their perspectives and experience.’ The committee is also seeking submissions that respond to some or all of the inquiry Terms of Reference by Friday 31 March 2023. Submissions can be made online via www.aph.gov.au/economicdynamism. More details about the inquiry and upcoming public hearings, including the full terms of reference, are available on the committee’s website. Public hearing details Productivity Commission Date:Thursday 16 March 2023 Time: 2.00 pm to 4.00 pm Australian Competition and Consumer Commission Date: Friday 17 March 2023 Time: 11.00 am to 1.00 pm Both public hearings will be broadcast live at https://www.aph.gov.au/live. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track Committee’ button in the bottom right-hand side of the page.

Building a stronger and more resilient economy is the focus of the House of Representatives Standing Committee on Economics’ new inquiry into promoting economic dynamism, competition and business formation.

Media release issue date: Sunday, 12 February 2023

Building a stronger and more resilient economy is the focus of the House of Representatives Standing Committee on Economics’ new inquiry into promoting economic dynamism, competition and business formation. The inquiry will examine how encouraging healthy competition, stimulating the creation of more businesses and fostering entrepreneurship can enhance the well-being of Australians. Committee chair Dr Daniel Mulino MP said there had been two significant inquiries into competition over the past few decades – the 1993 Hilmer report and the 2015 Harper review. ‘The committee does not plan to go over old ground. The economy has changed significantly over the past decade or so, particularly in digital technology and disruptive new technologies. We need to ensure we are harnessing this technology in the best way in the interests of consumers.’ Dr Mulino said that while new digital technologies/approaches could be a very effective way to increase competitive tension, they can also create regulatory challenges. ‘The committee will also investigate the continued market power of the Big 4 banks, especially in the area of mortgages, retail deposits, and loans to small and medium enterprises, and whether more can be done to encourage competition through changes to macroprudential arrangements or other measures. ‘In recent decades Australia’s productivity growth has stalled. The committee will examine the extent of market concentration, the fall in the establishment of new enterprises, the increase in mark-ups, and reduction in job mobility—and whether these have contributed to a decline in economic dynamism,’ Dr Mulino said. The pandemic and the war in Ukraine had challenged supply chains and a diverse and dynamic business environment was one answer to that problem, he said.   ‘It is also timely that as a committee we explore economic plans that better equip Australia in the face of global uncertainty. As the nation emerges from the pandemic it is critical that we renew our focus on competition and business dynamism, to boost our productivity and for the benefit of all Australian workers and consumers.’ Dr Mulino said the committee ‘would scrutinise the extent to which the consolidation of market power had undermined productivity, stifled wages, created more fragile markets and led to higher mark-ups.’ The committee will also examine: the degree to which anti-competitive behaviour and economic barriers—regulatory, as well as restrictions on access to finance, infrastructure, suppliers, customers, and workers—contribute to rising market concentration, and international examples of best practice and innovative policies that demonstrate how Australia could lower economic barriers to competition and business formation, further limit anti-competitive behaviour, and better manage changes in industry structure that affect market power. The committee is seeking submissions addressing some or all of the inquiry terms of reference from interested groups and individuals by Friday 31 March 2023. Submissions can be made online via www.aph.gov.au/economicdynamism. More details about the inquiry, including the full terms of reference, are available on the committee’s website. Media inquiries Committee Chair 02 6277 4311 Daniel.Mulino.MP@aph.gov.au For background information Committee Secretariat 02 6277 4587 economics.reps@aph.gov.au For more information about this committee, visit its website. On the site, you can make a submission to the inquiry, read other submissions, and get details for upcoming public hearings. You can also track the committee and receive email updates by clicking on the blue ‘Track this Committee’ button in the bottom right-hand side of the page.