Competitive Neutrality

Government and private businesses to compete on equal terms

Essentially the competitive neutrality principles, under the National Competition Policy, require that all significant government business activities should be corporatised or, if full corporatisation is not feasible, a 'full costing' model must be applied to offset any competitive advantage arising from public ownership.

A person may make a complaint against a significant government business activity that the complainant believes is in contravention of the competitive neutrality principles to the detriment of the complainant's business. However, the complainant must first discuss the supposed contravention with the government body conducting the activity.

A competitive neutrality complaint must be:
  1. in writing (a complaint form has been provided in the table below for this purpose); and
  2. accompanied by a filing fee of 110 fee units, inclusive of GST (see the table below for further information concerning the value of a fee unit).

The Regulator has the responsibility of conducting complaint investigations when the complaint meets the legislative requirements and an investigation is appropriate or necessary.

The Regulator has published competitive neutrality complaint guidelines, setting out an overview of the processes for the review of complaints about alleged breaches of, and non-compliance with, competitive neutrality principles. The Guidelines should be read in conjunction with the Competitive Neutrality Principles Application Statement and the Application Statement for Local Government issued by the Department of Treasury and Finance. Both of these documents plus others relating to national competition policy released by the Tasmanian Government are available below:

Complaint Assistance,
Legislation & Competitive Neutrality Principles
State Government Policies and Application Statements
Local Government Policies and Application Statements
  Competitive neutrality complaints guideline (OTTER July 2015)   (219Kb)

  Competitive neutrality complaint form (OTTER July 2015)   (212Kb)

Economic Regulator Act 2009 (see Part 6)

Competitive Neutrality Principles (Competition Principles Agreement) (National Competition Council, April 1995 - as amended)

Information on fee units

  Application of the Competitive Neutrality Principles under National Competition Policy (June 1996)   (114Kb)

  National Competition Policy Guidelines for Considering the Public Benefit under the National Competition Policy March 1997   (423Kb)​

  Costing Fees and Charges - Guidelines for Use by Agencies (Treasury December 2006)   (197Kb)​

  Guidelines for Implementing Full Cost Attribution Principles in Government Agencies (Treasury September 1997)   (102Kb)



  National Competition Policy: Applying the Principles to Local Government in Tasmania (Treasury December 2013)   (650Kb)

  Identification and Management of Significant Business Activities by Local Government in Tasmania to comply with CNP (Treasury December 2013)   (722Kb)

  Corporatisation Principles for Local Government Business Activities (Treasury December 1998 )   (130Kb)

  Full Cost Attribution Principles for Local Government Business Activities (Treasury June 1997)   (3Mb)​

Review of council recreational vehicle overnight camping services (DPAC, May 2012)


The Regulator wrote to all Tasmanian Local Government Councils and Tasmanian Government Departments in November 2010 advising them of the Regulator's role in relation to competitive neutrality complaints and reminding the councils and departments of the Regulator's approach to determining what business activities are significant when investigating CN complaints.

Under the Economic Regulator Act the Regulator is to report on any competitive neutrality investigations undertaken during the year in its Annual Report.









 

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