On 11 May 2021, the Australian Government announced reforms to the National Access Regime (NAR) aimed at improving the timeliness of processes under the NAR.
The NAR is a regulatory framework set out in Part IIIA of the Competition and Consumer Act 2010 to facilitate third party access to certain services provided by means of significant infrastructure facilities, and is designed to promote effective competition in upstream and downstream markets - typically by allowing users seeking access to significant infrastructure to have disputes arbitrated when negotiations fail.
Processes for contentious matters considered under the NAR have been identified by stakeholders as being lengthy and arduous, imposing unnecessary costs and acting as a possible deterrent to engaging with the regime. The announced reforms aim to improve timeliness by:
- removing merits review of ministerial declaration decisions;
- limiting repeat applications for declaration or revocation of declaration of infrastructure to where, for example, there has been a material change in circumstances; and
- terminating arbitration processes and determinations where a declaration is revoked.
The Office of Best Practice Regulation (OBPR) assessed a Regulation Impact Statement (RIS) prepared by the Department of the Treasury as adequate with the Government’s requirements, but not consistent with good practice. Given the polarised stakeholder views received in response to consultation on the options in the RIS, the OBPR considers it would have been good practice to include more rigorous impact analysis which more clearly demonstrated why the chosen options were preferred over the status quo, and to provide more detail on the necessary and complex transitional arrangements required to achieve full implementation of the reforms. More details are provided in the OBPR’s assessment advice linked below.
The RIS estimates average annual regulatory cost savings for chosen costed options 1 and 6 ranging from $98,000 to $665,300 (rounded to the nearest $100).
Please note – any accessibility queries should be directed to the Treasury.