The Albanese Government is consulting on notification thresholds as part of reforms to Australia's merger rules to boost competition and productivity in our economy.
Our reforms will 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.
Today the Government is releasing a consultation paper on proposed merger notification thresholds.
Mergers which meet the thresholds will be subject to the new merger rules from 1 January 2026, following passage of legislation. The Government has recently consulted on this draft legislation.
The proposed thresholds will apply economy‑wide and align with international best practice. They're targeted and risk based and aim to not capture acquisitions by small businesses.
Thresholds relate to the monetary value of the proposed transaction and the concentration of the affected market.
Monetary thresholds
It is proposed that mergers will trigger mandatory notification requirements if they reach either of the two following monetary thresholds and there is a material connection to Australia:
- 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.
Market concentration thresholds
In addition, it is proposed that mergers will trigger mandatory notification requirements if they reach either of the two following market concentration thresholds:
- A share of 25 per cent of an affected market, where Australian turnover of at least two of the parties to the acquisition (including the acquirer group) is at least $20 million.
- A share of 50 per cent of an affected market, with a lower turnover requirement of $10 million.
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.
They'll make it easier for the majority of mergers to be approved quickly, so the ACCC can focus on the minority that give rise to competition concerns.
The changes we're proposing will enable the ACCC to better identify growing market power and protect Australian consumers from anti‑competitive mergers.
There will 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 on the proposed merger notification thresholds are open until 20 September 2024.
The Albanese Government's economic plan is all about easing the cost of living for Australians at the same time as we build a more competitive, dynamic and productive economy, and our merger reforms will help to achieve both of these aims.
