The government has released a consultation paper on proposed merger notification thresholds to determine which mergers or acquisitions must be disclosed to the Australian Competition and Consumer Commission (ACCC) before completion.
The consultation forms part of broader reforms that the government first announced in April, seeking to introduce a prohibition on merger transactions proceeding without receiving a determination from the ACCC first from 1 January 2026.
In a statement on Friday, Treasurer Jim Chalmers said the rules, following passage of legislation, would make Australia’s merger approval system “faster, stronger, simpler, more targeted and more transparent”.
“They are designed to ensure the ACCC is informed of mergers most likely to be anti‑competitive, while minimising the overall compliance burden on businesses,” Chalmers said.
The proposed monetary thresholds that will trigger mandatory notification requirements are:
- If the combined Australian turnover of the merger parties (including the acquirer group) is at least $200 million, and either the Australian turnover is at least $40 million for each of at least two of the merger parties or if the global transaction value is at least $200 million.
- If the acquirer group’s Australian turnover is at least $500 million, and either the Australian turnover is at least $10 million for each of at least two of the merger parties or if the global transaction value is at least $50 million.
The government also put forward two market concentration thresholds that can similarly trigger mandatory notification requirements.
“These reforms are incredibly important for boosting productivity and competition, which is why we’re working closely and in good faith with the business community, regulators and others to ensure we strike the right balance,” Chalmers said.
“The changes we’re proposing will enable the ACCC to better identify growing market power and protect Australian consumers from anti‑competitive mergers.”
The Treasurer further clarified that there would be periodic reviews of the new merger system, including a statutory review which will take place three years from the start of the new system.
Submissions in response to the consultation are open until 20 September 2024.
In July, after the Albanese government released the first draft legislation of its proposed reforms to Australia’s merger laws, ACCC chair Gina Cass-Gottlieb said having the right thresholds for proposed mergers will be “key to the effectiveness of the proposed new regime”.
“The new merger regime needs to strike the right balance between ensuring that potentially anti-competitive mergers are scrutinised and where necessary, prevented, while minimising regulatory burden for acquisitions that do not have anti-competitive effects.”
