Competitive Neutrality in Australia : Opportunity for Policy Development

For competition to be effective in markets where government businesses compete with privately owned businesses, there must be a level playing field. A policy of competitive neutrality aims to ensure this. The article begins by briefly discussing the approach to competitive neutrality in the United States and the European Union to provide context for, and as a contrast to, the Australian approach. Then the origins and implementation of Australia’s competitive neutrality arrangements and the experience to date are explained and discussed. Using a real-life example, the utility of the current policy is considered, raising several issues of concern, and suggestions are made to address these. Finally, some conclusions are drawn about the current state of competitive neutrality policy in Australia