National Competition Policy

In April 1995, the Australian Government and all state and territory governments signed three inter-governmental agreements relating to the implementation of National Competition Policy (NCP). These agreements include the Conduct Code Agreement (CCA), the Competition Principles Agreement (CPA), and the Agreement to Implement NCP and Related Reforms.

The principal objective of NCP is to promote competition within the economy where it is considered to be in the public benefit. The underlying premise is that increased competition in a market leads to greater efficiency and productivity throughout the economy.

Clause 7 of the Competition Principles Agreement extended elements of the National Competition Policy reform agenda to local government. States and territories undertook to work with local government to apply legislation review and reform, competitive neutrality and structural reform principles at local government level. Each state and territory published a policy statement in 1996 on the application of these principles to local government.    

The 2008 National Competition Policy and Local Government Statement sets out the Victorian Government’s approach to competition policy, in particular, the implementation of competitive neutrality, in local government. Previously issued in 1996 and 2002, the 2008 Statement restates local governments’ continued obligation to comply with National Competition Policy (NCP) principles even after he discontinuation of NCP payments in 2005-06.