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Cabinet strikes agreement on 'effects test' changes

Wednesday, 16 Mar 2016 10:28:28 | Anna Henderson

Prime Minister Malcolm Turnbull says the effects test will enable small and emerging businesses to compete. (ABC News: Nick Haggarty)

The Federal Government has settled a two-year battle over the market power of big companies.

Cabinet has endorsed some of the so-called "effects test" based on the recommendation of the Harper Review into consumer and competition law.

The Nationals have been lobbying for the test, which would make it easier to prove companies have abused their power, but some Liberals remain unconvinced.

The Prime Minister called a party-room meeting to present the plan to MPs and Senators this morning.

"What this will do is ensure that our competition law works better to enable competition, to enable smaller businesses, emerging businesses, to be better able to compete," Mr Turnbull told reporters after the meeting.

"We know that while larger firms are often very innovative and very often very competitive, they are more innovative if the hot breath of competition is coming down their neck."

Previously, a number of government frontbenchers have been concerned about the potential for the changes to be subject to a legal challenge.

The Prime Minister said last night's Cabinet discussion was extremely "erudite".

It is not clear whether the legislation will be put to a vote in Parliament before the election. The Prime Minister has emphasised the need to consult with state and territory Governments first.

AustraliaPlus


 

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