Sweeping reforms to Australia's merger control rules announced

The Australian Government has announced sweeping reforms to Australia's merger rules that will commence in January 2026.

Australia will replace its voluntary, non-suspensory regime with a mandatory and suspensory system, subject to forthcoming economic and market share thresholds. The new rules are largely consistent with other comparable jurisdictions' regimes. The changes represent a reasonable balance between the ACCC's proposals and the Australian business community's responses to the Treasury's consultation process.

There are some limited changes to the legal test, but no fundamental changes as to the substantive assessment of mergers. The major changes will be procedural, and our view is that more potential acquisitions will be subject to notification obligations and suspension, even where there are no or limited competition concerns. Much depends on how effectively the economic and market share thresholds are set. The Treasury will consult on