August / September 1999

Australia: New offence of ‘price exploitation’ under Trade Practices Act

01 August 1999

Part VB of the Trade Practices Act 1974 came into effect on July 9 1999 and creates the offence of price exploitation in relation to Australia’s New Tax System. The new provisions seek to ensure that the benefits of changes to Australia’s taxation regime under the New Tax System are passed on to consumers. The new price oversight regime reflects the government’s desire to control the risk of businesses profiteering from the New Tax System. Competition alone has not been seen as a sufficient constraint to achieve this end. The ACCC has also been given additional enforcement powers in relation to Part VB.