• Lawyers in Sydney
• Lawyers in Melbourne
• Lawyers in Brisbane
• Lawyers in Perth
• Family lawyers
• Employment lawyers
• Criminal lawyers
• Wills and estates lawyers
• Find a lawyer

Why it matters (purpose claims and practical tests)

• Official purpose claim: to give the AER its own institutional identity and governance separate from the ACCC (see Act title and the amendments making the AER a listed entity). The text accomplishes that by: (a) making the AER a non‑corporate Commonwealth entity with its own accountable authority, and (b) moving AER staff into the APS framework under the Public Service Act.

• Practical effects and trade‑offs the text creates:

  • Administrative and governance separation: the AER will be governed and reported as a distinct Commonwealth entity under finance rules (new finance‑law insertions). That concentrates decision‑making about AER finances and governance in AER members and the AER Chair (who is head of a Statutory Agency) (sections 6, 44AAC).
  • Ongoing operational links to the ACCC: the Commission may provide corporate and IT supports to the AER (section 28A), so the reform does not mandate full physical or systems separation and allows shared services where convenient.
  • Employment continuity and industrial relations: existing ACCC enterprise agreement coverage carries over to AER APS employees and to the AER Chair as Agency Head (Schedule 2, items 5–6). This reduces immediate employment disruption but preserves the need to manage separate employer obligations as the AER operates as its own listed entity.
  • Transitional and implementation authority: the Minister may make legislative‑instrument rules for transition (Schedule 2, item 7), but those rules cannot create offences, taxes, or change appropriation amounts (item 7(3)), limiting open‑ended executive power.
  • State/Territory interactions: the Act updates and renames references to State/Territory energy laws as “AER State/Territory energy law” and preserves the ability to enter arrangements with states/territories to make their officers available to the AER (section 44AACA). The Commonwealth can reimburse States under such arrangements (44AACA(3)).

Costs, incentives and implementation risks spelled out by the text

• Who pays: the Commonwealth funds the AER as a listed entity (finance‑law treatment). Reimbursement to States for seconded staff is permitted (44AACA(3)). The Act does not create a new appropriation line in itself (Schedule 2 limits); funding will be managed under existing budget/appropriation processes.
• Administrative cost and duplication risk: establishing separate governance, reporting and APS arrangements will create setup costs (new administrative structures, payroll, separate accountable‑authority responsibilities). The law partially mitigates duplication by permitting shared supports from the ACCC (section 28A).
• Bureaucratic discretion and rule‑making: the Minister’s transitional rule power is broad for administrative matters but expressly cannot create offences, taxes or change appropriations (Schedule 2, item 7(3)).
• Effects on regulated businesses and markets: the Act does not change the AER’s substantive regulatory powers in Division 3 of Part IIIAA; it changes the regulator’s institutional form and governance. That may affect how priorities are set, but the text does not alter enforcement powers or market‑facing rules.

Concrete behavioural and contractual effects

• AER staff become APS employees under the Public Service Act, changing employer‑employee legal relationships (section 44AAC(1)). The ACCC Enterprise Agreement continues to apply to those employees initially (Schedule 2, item 5).
• Existing delegations and documents relevant to AER functions continue in force and may be transferred to the AER (Schedule 2 items 2–3), so current administrative instruments remain operative through the transition.

Implementation and compliance observations

• The Act is largely an institutional and machinery change: it preserves AER functions but reassigns governance, staff, and finance responsibilities. The main implementation tasks are structural: payroll/employment, accountable‑authority reporting, transfer of records, and updating cross‑references in practice.
• The law deliberately limits what transitional rules can do (Schedule 2 item 7(3)), which constrains executive flexibility on substantive matters like offences, taxes or appropriations.

Key sections to look at if you want the technical detail: finance‑law inserts (after subsection 6A(1) and after subsection 44AE(1)), new staff rules (Subdivision B: sections 44AAC–44AACB), resource‑sharing with the ACCC (section 28A), the new definition of AER State/Territory energy law (section 44AB), and the transitional items about enterprise agreements and rule‑making (Schedule 2, items 2–7).

Official APH document links

• First reading: https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbills%2Fs1457_first-senate%2F0000%22;rec=0
• As passed by both Houses: https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22legislation/bills/s1457_aspassed/0000%22
• Explanatory memorandum: https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fems%2Fs1457_ems_785089ef-5c0f-4873-82f5-be0ce112d27d%22
• All second reading speeches: https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result/Second_Reading_Speeches?BillId=s1457
• Minister's second reading speech: https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22chamber%2Fhansards%2F28816%2F0165%22
• Committee report (21/08/2025): https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/EnergyRegulator2025
• www.legislation.gov.au: https://www.legislation.gov.au

Enacted Act text

Source: https://www.legislation.gov.au/C2025A00059/latest/text

This bill has received royal assent and is recorded on the Federal Register as Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025. The following is the enacted Act text used to enrich the bill analysis.

meta-content-style-type: text/css meta-content-type: application/xhtml+xml; charset=utf-8

?xml version="1.0" encoding="utf-8" standalone="no"?>

Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025

No. 59, 2025

An Act to separate the Australian Energy Regulator from the Australian Competition and Consumer Commission, and for related purposes

Contents

1 Short title

2 Commencement

3 Schedules

Schedule 1,Main amendments

Competition and Consumer Act 2010

Schedule 2,Application, saving and transitional provisions

Part 1,Preliminary

Part 2,Application, saving and transitional provisions

Part 3,Transitional rules

Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025

No. 59, 2025

An Act to separate the Australian Energy Regulator from the Australian Competition and Consumer Commission, and for related purposes

[Assented to 6 November 2025]

The Parliament of Australia enacts:

1 Short title

This Act is the Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

• Commencement information
• Column 1 Column 2 Column 3
• Provisions Commencement Date/Details
• 1. The whole of this Act 1 July 2026. 1 July 2026

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3 Schedules

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1,Main amendments

Competition and Consumer Act 2010

1 After subsection 6A(1)

Insert:

(1AA) For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):

(a) the Commission is a listed entity; and

(b) the Chairperson is the accountable authority of the Commission; and

(c) the following persons are officials of the Commission:

(i) the Chairperson;

(ii) the other members of the Commission;

(iii) the associate members of the Commission;

(iv) persons engaged under section 27; and

(d) the purposes of the Commission include the functions conferred on the Commission by this Act.

2 Section 8AB

Repeal the section.

3 After section 28

Insert:

28A Function of Commission in relation to providing resources to the AER

In addition to any other functions conferred on the Commission, the Commission may provide the AER with supports and resources (including corporate and information technology resources) to assist in the administration of the AER.

4 Section 44AB

Insert:

AER State/Territory energy law means any of the following laws:

(a) a uniform energy law that applies as a law of a State or Territory;

(b) a law of a State or Territory that applies a law mentioned in paragraph (a) as a law of its own jurisdiction;

(c) any other provisions of a law of a State or Territory that:

(i) relate to energy; and

(ii) are prescribed by the regulations for the purposes of this paragraph;

being those provisions as in force from time to time.

5 After subsection 44AE(1)

Insert:

(1A) For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):

(a) the AER is a listed entity; and

(b) the AER members are the accountable authority of the AER; and

(c) the following persons are officials of the AER:

(i) the AER members;

(ii) the staff of the AER referred to in section 44AAC;

(iii) persons assisting the AER referred to in section 44AACA;

(iv) consultants engaged under section 44AACB; and

(d) the purposes of the AER include the functions of the AER under Division 3 of this Part.

6 Paragraph 44AE(3)(a)

Before “not to be”, insert “to be a non‑corporate Commonwealth entity, and”.

7 Paragraph 44AE(3)(b)

Omit “, and a part of the Commission”.

8 Sections 44AI to 44AJ

Omit “a State/Territory energy law” (wherever occurring), substitute “an AER State/Territory energy law”.

9 Section 44AK (heading)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

10 Section 44AK

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

11 Subsection 44AM(1) (note)

Repeal the note.

12 Subsection 44AP(1) (note)

Repeal the note.

13 Subsection 44AY(3) (note)

Repeal the note.

14 Subdivision B of Division 4 of Part IIIAA

Repeal the Subdivision, substitute:

Subdivision B,Staff of the AER etc.

44AAC Staff of the AER

(1) The staff of the AER must be persons engaged under the Public Service Act 1999.

(2) For the purposes of the Public Service Act 1999:

(a) the AER Chair and the APS employees assisting the AER Chair together constitute a Statutory Agency; and

(b) the AER Chair is the Head of that Statutory Agency.

44AACA Persons assisting the AER

(1) The AER may be assisted by:

(a) officers and employees of Agencies (within the meaning of the Public Service Act 1999), and of authorities of the Commonwealth, whose services are made available to the AER in connection with the performance of any of the AER’s functions; and

(b) persons whose services are made available under arrangements made under subsection (2).

(2) The AER may, on behalf of the Commonwealth, make an arrangement with the appropriate authority or officer of:

(a) a State or Territory government; or

(b) a State or Territory government authority;

under which the government or authority makes officers or employees available to the AER to perform services in connection with the performance of any of the AER’s functions.

(3) An arrangement under subsection (2) may provide for the Commonwealth to reimburse a State or Territory with respect to the services of a person to whom the arrangement relates.

(4) When performing services for the AER under this section, a person is subject to the directions of the AER.

44AACB Consultants

(1) The AER may, on behalf of the Commonwealth, engage persons to give advice to, and perform services for, the AER.

(2) The terms and conditions of engagement are as determined by the AER.

15 Paragraph 44AAEA(1)(c)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

16 Section 44AAEC (heading)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

17 Paragraph 44AAEC(1)(a)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

18 Subsection 44AAEC(10)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

19 Subsections 44AAEC(10) and (11)

Omit “the State/Territory energy law” (wherever occurring), substitute “the AER State/Territory energy law”.

20 Subparagraph 44AAF(6)(a)(i)

Omit “, a person referred to in section 44AAC”.

21 After subparagraph 44AAF(6)(a)(i)

Insert:

(ii) a member of the staff of the AER; or

(iii) a person assisting the AER referred to in section 44AACA; or

(iv) a consultant engaged under section 44AACB; or

22 Subparagraph 44AAF(6)(a)(ii)

Renumber as subparagraph (v).

23 Paragraph 44AAFA(2)(c)

Repeal the paragraph, substitute:

(c) appear before:

(i) the AER; or

(ii) a specified member of the staff of the AER who is an SES employee or an acting SES employee; or

(iii) a specified person assisting the AER, referred to in section 44AACA, who is an SES employee or an acting SES employee;

to give any such evidence (either orally or in writing) and produce any such documents.

24 Section 44AAG

Omit “a State/Territory energy law” (wherever occurring), substitute “an AER State/Territory energy law”.

25 Paragraph 44AAH(b)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

26 Section 44AAH

Omit “an SES employee, or acting SES employee, assisting the AER as mentioned in section 44AAC”, substitute “a member of the staff of the AER who is an SES employee or acting SES employee”.

27 Subsection 44AAI(1)

Omit “a State/Territory energy law”, substitute “an AER State/Territory energy law”.

28 Part IIIAB

Repeal the Part.

29 Paragraph 155(1)(c)

Omit “or before an associate member of the Commission who is an AER member and who is specified in the notice,”.

30 After paragraph 155AAA(12)(lb)

Insert:

(lc) the Australian Energy Regulator;

31 Paragraph 157A(1)(c)

Omit “the AER or”.

32 After paragraph 157A(1)(c)

Insert:

or (d) a member of the staff of the AER, a person assisting the AER referred to in section 44AACA or a consultant engaged under section 44AACB;

33 Subsection 157A(2)

Omit “paragraph (1)(c)”, substitute “paragraph (1)(d)”.

34 Paragraph 158B(1)(a)

Omit “before the AER or a person assisting the AER”, substitute “before the AER, a member of the staff of the AER or a person assisting the AER”.

35 Paragraph 158B(1)(f)

Omit “, an associate member of the Commission who is an AER member”.

36 Subsection 158B(5)

Omit “, the associate member of the Commission who is an AER member”.

Schedule 2,Application, saving and transitional provisions

Part 1,Preliminary

1 Definitions

(1) In this Schedule:

ACCC Enterprise Agreement means the Australian Competition and Consumer Commission Enterprise Agreement 2024‑2027 approved under the Fair Work Act 2009 on 28 March 2024, as in force immediately before the commencement day.

amending Act means the Competition and Consumer Amendment (Australian Energy Regulator Separation) Act 2025.

commencement day means 1 July 2026.

(2) Expressions used in this Schedule that are defined for the purposes of the Competition and Consumer Act 2010 have the same meaning as in that Act.

Part 2,Application, saving and transitional provisions

2 Delegations

(1) This item applies in relation to a delegation if:

(a) the delegation was made under section 44AAH of the Competition and Consumer Act 2010 before the commencement day; and

(b) the delegation is in force immediately before the commencement day.

(2) The delegation continues in force (and may be dealt with), on and after the commencement day, as if it were a delegation made under section 44AAH of the Competition and Consumer Act 2010, as amended by the amending Act.

3 Transfer of documents to the AER

(1) This item applies to a document if:

(a) immediately before the commencement day, the document was in the possession of the Commission; and

(b) the document was:

(i) given to or received by the Commission; or

(ii) brought into existence;

in relation to the performance of a function of the AER under Division 3 of Part IIIAA of the Competition and Consumer Act 2010.

(2) The documents may be transferred to the AER on or after the commencement day.

Note: Any documents transferred are Commonwealth records for the purposes of the Archives Act 1983.

4 Regulations prescribing State/Territory energy laws

(1) Regulations made for the purposes of paragraph (c) of the definition of State/Territory energy law in subsection 4(1) of the Competition and Consumer Act 2010, and in force immediately before the commencement day, also have effect, during the transitional period, as if those regulations had been made for the purposes of paragraph (c) of the definition of AER State/Territory energy law in section 44AB of the Competition and Consumer Act 2010, as amended by the amending Act.

(2) For the purposes of subitem (1), the transitional period is the period beginning at the start of the commencement day and ending immediately before regulations made for the purposes of paragraph (c) of the definition of AER State/Territory energy law in section 44AB of the Competition and Consumer Act 2010, as amended by the amending Act, take effect.

5 Enterprise Agreement

(1) The ACCC Enterprise Agreement:

(a) continues, on and from the commencement day, to cover and apply to APS employees:

(i) who it covered and applied to immediately before the commencement day; and

(ii) who, on the commencement day, are members of the staff of the AER; and

(b) covers and applies to APS employees who are at the classification levels covered by the ACCC Enterprise Agreement whose employment as a member of the staff of the AER commences on or after the commencement day.

(2) On and after the commencement day, the ACCC Enterprise Agreement covers and applies to the AER Chair as the Agency Head of the APS employees who

This is an opening excerpt, not the complete document.