Our competition policies
Government policies that support competitive markets are fundamental to productivity. They make it easier for businesses and new technologies to enter markets, bringing consumers lower prices and greater choice, and create an environment where innovation can flourish.
Competition policy is a key arm of the NSW Government’s economic policy, falling under the portfolio responsibility of the Treasurer. NSW Treasury advises on matters affecting competition in NSW.
The 1995 Competition Principles Agreement was made between Australia’s Commonwealth, States and Territories Governments in 1995 (amended 2007). This agreement promotes consistent competition policies for all Australian businesses regardless of ownership.
This original National Competition Policy (NCP) agreement set a guiding principle that legislation should not restrict competition unless it can be demonstrated that the benefits of the restriction to the community outweigh the costs, and the objectives can only be achieved by restricting competition.
Updated NCP agreements were signed on 29 November 2024 by Commonwealth, state and territory treasurers. There are two agreements that work together with the Competition and Consumer Act 2010 (Cth) to maintain and promote consistent and complimentary competition policies:
- The Intergovernmental Agreement (IGA) on National Competition Policy aims to build on the achievements of the 1995 National Competition Policy agreements. It sets out a framework for nationally harmonious competition laws and revitalised NCP principles.
- The IGA is accompanied by agreement to a 10-year reform program in a Federal Funding Agreement schedule (FFA). Following the example of the first NCP, NSW will share in the economic benefits of competition-enhancing reforms that it implements, supported by the Commonwealth Government’s $900 million National Productivity Fund, and overseen by a new National Competition Council.
NSW Government agencies should contact NSW Treasury for guidance on applying the principles of the updated IGA.
The NSW Government promotes competitive outcomes through its competitive neutrality and procurement policies.
The competitive neutrality principles aim to promote efficient competition between public and private businesses. Specifically, they seek to ensure that government businesses do not enjoy competitive advantages over their private-sector competitors by virtue of their public-sector ownership.
Read the NSW Government’s ‘Policy Statement on the Application of Competitive Neutrality’.
A review of the NSW Government’s competitive neutrality policies and processes was recommended in the 2021 NSW Productivity Commission White Paper. The NSW Government has accepted this recommendation and tasked the NSW Independent Pricing and Regulatory Tribunal (IPART) with undertaking the review. Further details are available on the IPART website.
The Government has assigned to IPART partial responsibility for investigating and reporting on Competitive Neutrality complaints. Read more about this on the IPART website.
State Governments are responsible for procuring goods and services on behalf of the public. Policies that create distortions in competitive markets will detract from productivity growth. The promotion of competition is a key consideration in the procurement activities of NSW Government agencies.
The NSW Government Procurement Policy Framework (the Policy) sets out the policy and operating framework for the NSW public sector procurement system, and provides a single source of guidance on the rules for procurement.
As outlined in the Policy (see page 10 of the framework document), a key objective of the NSW Government is to improve procurement outcomes through fair and open competition, as well as facilitating access to government procurement business by the private sector, especially small, medium, and regional-based enterprises.
Regulation can create barriers to entry and restrict competition. It can also help to foster healthy markets, by ensuring market participants are adequately protected and compete on a level playing field. Effective regulatory policy carefully considers and balances these, and other, costs and benefits.
NSW Treasury has responsibility for regulatory policy in NSW. The NSW Productivity and Equality Commission website provides further information for assessing the impacts of regulation on competition.
NSW Government agencies can seek advice on competition and regulatory policy matters by emailing BetterRegulation@treasury.nsw.gov.au.
Contact NSW Treasury
For general or media enquiries, complete our online form or visit our Contact us page.
- Address: 52 Martin Place, Sydney, NSW 2000 (Enter via 127 Phillip Street)
- Post: GPO Box 5469, Sydney, NSW 2001