What it does
The Competition Policy Reform (Tasmania) Act 1996 is Tasmania's adopting statute in the intergovernmental scheme that created a uniform national competition law across Australia. Its core function is to apply the Competition Code text as a law of Tasmania (s 5(1)). The Competition Code text consists of the Schedule version of Part IV of the Commonwealth Trade Practices Act 1974 (now the Competition and Consumer Act 2010) together with the remaining provisions of that Act (except sections 2A, 5, 6 and 172) and the regulations under that Act, so far as they relate to the Schedule version (s 4(1)). Those remaining provisions are modified as necessary to fit with the Schedule version, and in particular references to corporations are to include references to persons who are not corporations (s 4(2)). This mechanism ensures that the substantive prohibitions on anti-competitive conduct (cartels, misuse of market power, exclusive dealing, resale price maintenance, mergers substantially lessening competition) apply to all persons in Tasmania, not merely to constitutional corporations as the Commonwealth Act would otherwise reach. The Act also handles the relationship between the Tasmanian code and the codes of other participating jurisdictions. It provides that references to the Competition Code in any instrument are references to the codes of any or all participating jurisdictions (s 11(2)), and it establishes mechanisms to treat the various state and territory codes as a single national Competition Code for administrative and enforcement purposes (s 18). The Act binds the Crown in right of Tasmania and other jurisdictions, but only so far as the Crown carries on a business (ss 13, 14). Specific activities are defined as not amounting to carrying on a business for these purposes, including imposing taxes, granting licences, certain intra-government transactions, and compulsory acquisitions of primary products (s 15). The Act also contains transitional provisions (Part 7) that protect pre-existing contracts made before 19 August 1994 from the new competition rules, subject to certain conditions (ss 40-41), and provides a temporary exemption from pecuniary penalties for conduct occurring within two years after the Commonwealth Competition Policy Reform Act 1995 received Royal Assent (s 43). In essence, this Act is the vehicle by which Tasmania adopted and implemented the national competition policy reforms agreed under the Conduct Code Agreement of April 1995, and it continues to give state-level force to the competition rules as they are amended from time to time (subject to the postponement and exclusion powers in s 6).