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Ai Group comment on adoption of Effects Test

Thursday 17 March 2016

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"The Federal Government's decision to adopt an effects test is rightly focused on protecting the competitive process rather than on protecting individual competitors. This focus is critical if we are to lift our emphasis on innovation and to encourage investment by businesses of all sizes," Australian Industry Group Chief Executive, Innes Willox, said today.

"There remains considerable uncertainty, and divergent views, about how introducing an effects test will play out. It is critical that there is very close monitoring of the changed approach and its impacts on competition, innovation and investment.  

"Our concern about the implementation of an effects test as originally envisioned was that it would stifle innovation and competitiveness as well as increase red tape for business. We welcome the Government's recent dialogue with industry on how a practical effects test would work.

"An appropriate review mechanism is necessary to test the impact of the Government's decision. We need to be willing to modify the changed approach if it proves to have the adverse impacts that some fear," Mr Willox said. 

Media Enquiries:  Tony Melville - 0419 190 347