This bill did not become law and is no longer proceeding.
Budget, tax & economy
Australia’s competition watchdog would keep tracking domestic airline prices, costs and profits so the public and government can keep seeing how competitive the local airline market really is.
The ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits.’s airline monitoring program expired in June 2023 even though its final report found weak domestic airline competition was still driving higher fares and poorer service. The bill restores ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring for another three years and requires quarterly public reports to keep pressure and visibility on the market.
After COVID-19 destabilised aviation in 2020, the government gave the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. a three-year brief to watch a domestic market dominated by QantasAustralia's largest domestic airline, mentioned here as one of the two dominant carriers in the market. and VirginOne of the two major domestic airlines discussed in the background material as part of the market the ACCC was watching., but the watchdog’s June 2023 final report said competition was still weak, with higher fares and worse service, just as that program expired. The bill was introduced to restore quarterly public scrutiny for another three years, and although it later lapsed, the government separately revived ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring in late 2023 and reports resumed in February 2024.
The main criticism was that the bill would duplicate airline monitoring the government had already directed the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. to do, while adding extra legislation without improving the regulator’s ability to get the data it needs. That objection came mainly from Labor speakers in Parliament, and it was a narrow drafting-and-effectiveness criticism rather than a broad defence of the airlines or case against monitoring itself.
Senator Dean Smith introduced this bill. Speeches supporting it came from Liberal Party, Nationals, Pauline Hanson's One Nation Party.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
678 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
Australia’s competition watchdog would keep tracking domestic airline prices, costs and profits so the public and government can keep seeing how competitive the local airline market really is.
Domestic flights within Australia, along with related add-on goods and services, would be monitored for another 3 years rather than letting the earlier monitoring program stay expired.
The Australian Competition and Consumer CommissionThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. would have to give the minister a report at least every quarterA three-month reporting period, used here to require the ACCC to report at least every three months. for 3 years, creating regular public updates on the airline market.
Airline competition reports would have to protect commercially sensitive business information, so public reporting would continue without forcing airlines to disclose confidential details.
The reports would have to be published online and tabled in ParliamentA report is officially placed before both houses of Parliament so MPs and senators can see it., making airline competition findings easier for travellers, MPs and the wider public to check.
This Bill amends the Competition and Consumer Act 2010 to direct the Australian Competition and Consumer Commission (ACCC) to continue its monitoring program of prices, costs and profits relating to the supply of domestic air passenger transport services.Competition and Consumer Amendment (Continuing ACCC Monitoring of Domestic Airline Competition) explanatory memorandum
Subsection (1) explains that the objective of this provision is to conduct a monitoring process for a duration of three years. This process involves the assessment of prices, costs, and profits associated with the provision of domestic air passenger transport services, as well as the related goods and services.Competition and Consumer Amendment (Continuing ACCC Monitoring of Domestic Airline Competition) explanatory memorandum
Paragraph (2)(b) requires the Commission to submit periodic reports to the Minister. These reports must be provided at least once every quarter throughout a three-year period starting from the commencement of this section. These reports will detail the findings and observations resulting from the ongoing monitoring efforts conducted by the Commission.Competition and Consumer Amendment (Continuing ACCC Monitoring of Domestic Airline Competition) explanatory memorandum
Subsection (4) stipulates that when the Commission is in the process of preparing a report in accordance with paragraph (2)(b), it is required to consider the necessity of maintaining commercial confidentiality. This provision emphasizes the Commission’s responsibility to balance its duty to monitor and report on industry matters with the need to protect sensitive commercial information that could be of a confidential nature. It ensures that the Commission respects and upholds the confidentiality interests of businesses and other commercial entities involved in the air passenger transport service industry when preparing its reports.Competition and Consumer Amendment (Continuing ACCC Monitoring of Domestic Airline Competition) explanatory memorandum
Subsection (6) requires the Minister to table the report in each House of the Parliament. These provisions underscore the commitment to transparency and accountability in the regulatory process. They ensure that the information and findings contained within the reports are made accessible to the public, allowing for greater transparency and scrutiny of the Commission’s activities in monitoring and reporting on the air passenger transport service industry.Competition and Consumer Amendment (Continuing ACCC Monitoring of Domestic Airline Competition) explanatory memorandum
Context
After COVID-19 destabilised aviation in 2020, the government gave the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. a three-year brief to watch a domestic market dominated by QantasAustralia's largest domestic airline, mentioned here as one of the two dominant carriers in the market. and VirginOne of the two major domestic airlines discussed in the background material as part of the market the ACCC was watching., but the watchdog’s June 2023 final report said competition was still weak, with higher fares and worse service, just as that program expired. The bill was introduced to restore quarterly public scrutiny for another three years, and although it later lapsed, the government separately revived ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring in late 2023 and reports resumed in February 2024.
Government directs the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. to monitor domestic airlines
The Morrison government told the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. to track prices, costs and profits in domestic aviation for three years after COVID-19 hit the sector and VirginOne of the two major domestic airlines discussed in the background material as part of the market the ACCC was watching. Australia entered administration.
ACCC ↗ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. final report says competition is still weak
The ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits.’s last report under the original program said insufficient competition was still pushing up airfares and worsening service quality for travellers.
ACCC ↗Original airline monitoring program expires
After 12 reports, the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits.’s existing monitoring direction ended at the close of June 2023, leaving no ongoing public reporting requirement in place.
Competition and Consumer Amendment (Continuing ACCC Monitoring of Domestic Airline Competition) explanatory memorandum ↗Bill introduced to continue ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. airline monitoring
The bill was presented in the Senate to replicate the earlier monitoring regime for another three years and require quarterly public reports tabled in ParliamentA report is officially placed before both houses of Parliament so MPs and senators can see it..
Parliamentary timeline ↗Government restores ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring powers
The Treasurer reinstated the watchdog’s domestic aviation monitoring mandate, reviving oversight outside this bill after the earlier program had been allowed to lapse.
Australian Financial Review ↗ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. publishes its first renewed airline competition report
The first report after monitoring resumed said QantasAustralia's largest domestic airline, mentioned here as one of the two dominant carriers in the market. and VirginOne of the two major domestic airlines discussed in the background material as part of the market the ACCC was watching. could invest more of their large profits to improve reliability and customer service.
Australian Financial Review ↗Bill lapses at the end of Parliament
The bill fell away when Parliament ended, so the proposed statutory extension did not become law even though monitoring had already resumed administratively.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Key criticism
The main criticism was that the bill would duplicate airline monitoring the government had already directed the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. to do, while adding extra legislation without improving the regulator’s ability to get the data it needs. That objection came mainly from Labor speakers in Parliament, and it was a narrow drafting-and-effectiveness criticism rather than a broad defence of the airlines or case against monitoring itself.
Criticism focused on duplication and weak design, not on rejecting airline scrutiny.
Duplicates existing monitoring
Critics argued the bill was unnecessary because the government had already directed the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. to continue monitoring the domestic airline market, so passing another law would just duplicate work and add red tape.
May be less effective than a ministerial direction
Critics said the private senator's billA bill introduced by senators rather than by the government, which matters here because critics said it duplicated what the government had already done. did not give the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. the same practical information-gathering strength as the existing Part VIIAThe part of the competition law that contains the price monitoring powers being used for airline oversight on this page. monitoring direction, so it risked creating a weaker or less useful monitoring framework.
Further sources
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Dean Smith supports the bill and says the Coalition is introducing it to restore ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring of domestic airline competition for another three years.
Read in Hansard ↗Bilyk says the government will not support the bill, arguing it simply duplicates an ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring direction already in place and would add red tape without giving the ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. the power to gather the information it needs.
Read in Hansard ↗Roberts says One Nation will support the bill because it would keep ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring in place and help curb the domestic airline duopoly, which he argues has driven up fares and hurt service.
Read in Hansard ↗McKenzie says the coalition supports the bill because it would restore ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring of domestic airline competition and make cancellations and delays more transparent.
Read in Hansard ↗All speeches by bloc
2 speakers · 2 oppose
“The government does not, however, support the passage of the bill proposed by the opposition. While we acknowledge the value of providing the ACCC with resources to monitor the aviation sector, the proposed bill merely duplicates the functions of the ACCC direction under section 95H of the Competition and Consumer Act already agreed to by government.”Read the full speech in Hansard ↗
“This bill does not provide the ACCC with necessary information gathering powers to seek information and data from relevant suppliers to inform observations and recommendations. So, in fact, the opposition's proposed monitoring scheme will be ineffective and largely useless, whereas the Treasurer's direction is not only superior to this bill but it also improves upon the previous monitoring scheme put in place by those opposite.”Read the full speech in Hansard ↗
2 speakers · 3 contributions · 2 support
“This is a chance for the Labor Party to back their press release and back the bill put forward by Senator Dean Smith and me, which delivers on recommendation 4 of the bilateral aviation inquiry, so that we can get the ACCC once again monitoring cancellations and delays and making that transparent and public, instead of hiding behind a press release that hasn't actually achieved anything and hasn't delivered what they said it would.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Dean Smith on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Dean Smith supports the bill and says the Coalition is introducing it to restore ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring of domestic airline competition for another three years. He argues the measure is needed because families face high travel costs and the sector needs independent scrutiny after government decisions and a lack of transparency.
“Resuming ACCC monitoring represents the most immediate and effective way to deliver this.”Read this contribution in Hansard ↗
Second reading speech
Dean Smith says the coalition supports the bill because it would extend ACCCThe national regulator that checks market behaviour and, on this page, would keep monitoring domestic airline prices, costs and profits. monitoring of domestic airline competition and keep pressure on airlines over poor service and prices. He argues the monitoring should be extended now and criticises the government for delaying its own commitment and leaving consumers exposed to a possible gap.
“The coalition is arguing that that regime should be extended and that, in addition to that, those points that were raised in the final report should be acted on: improvements to consumer protections, improvements to the Sydney airport slot management regime and an extension to the monitoring regime that was effectively asked for by the ACCC itself.”Read this contribution in Hansard ↗
1 speaker · 1 support
“I thank Senators Dean Smith and McKenzie for their bill, which One Nation will be supporting. We have one flag, we are one community, we are one nation. Restoring and defending competition in oligopolistic markets is a government obligation, an obligation that One Nation will work to ensure the government fulfils for the benefit of airline passengers and the whole country.”Read the full speech in Hansard ↗
Record
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.
