The Albanese Labor Government’s new mandatory mergers notification regime threatensto put a handbrake on investment and productivity when the transition phase starts on 1July 2025.

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Under the scheme’s fee structure, businesses could face charges of almost $1 million andan uncertain wait of six months for relatively small transactions to be reviewed andapproved. Such an approach threatens to further stifle investment, hamper productivity,and slow Australian innovation.

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“This is not targeted regulation. It’s a potential handbrake on investment and productivity,”said Shadow Assistant Minister for Competition, Charities and Treasury, Senator DaveSharma.

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“Experts have warned these changes may drive away international capital, kill off small-scale mergers, and make it harder for Australian businesses to grow and compete.”

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“The Coalition supports sensible efforts to improve Australia’s competition policyframework but has repeatedly warned that the new regime’s success would hinge on howit was implemented.”

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“The Labor Government has chosen to announce expensive mandatory fees the day beforethe transition begins, and after just thirteen days of public consultation.”

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“This new merger regime is both more expensive and more bureaucratic, flying in the faceof Labor’s stated ambition to boost productivity. The new regime risks discouraginglegitimate commercial activity and acting as a further deterrent for foreign investors.”

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Every mandatory notification attracts a fee of $56,800 (Phase 1), with additional fees ofbetween $475,000 and $1.595 million for transactions the ACCC determines are in need ofa greater level of assessment (Phase 2).

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The phase 2 fees are substantially higher than in comparable jurisdictions; at least fivetimes higher than the equivalent mandatory notification fee in Canada and at least threetimes higher than in the UK.

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The processing times are also significant: 6 weeks for a Phase 1 review, 18 weeks for aPhase 2 review, and 10 weeks for a public benefit application. This means a transactionmay require up to 9 months to receive clearance.

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“A healthy level of mergers and acquisitions is critical to Australia’s economic dynamismand productivity. It’s how innovative businesses grow, how competition is strengthened,and how Australian consumers get better products at lower prices. This regime risksgrinding that process to a halt,” Senator Sharma said.

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“The Coalition will continue to scrutinise the implementation of the new mergers andacquisition regime closely during this transition phase, particularly the impact of the feestructure on Australia’s competitiveness and investment landscape.

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“As an opposition we will be constructive where we can and critical where we must.”

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-ENDS-

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