The Victorian Government is a party to the inter-governmental Competition Principles Agreement (CPA) which is one of three agreements that collectively underpins National Competition Policy. Amongst other things, the CPA sets out signatories’ obligations with respect to competitive neutrality.
Competitive neutrality ensures that the significant business activities of publicly owned entities compete fairly in the market. It is about transparent cost identification and pricing in a way that removes advantages arising from public ownership. Competitive neutrality under the CPA does not apply to non-business, non-profit activities of government, but it does apply to local government businesses.
The practical application of competitive neutrality in Victoria is set out in Competitive Neutrality Policy (261 kb PDF). This policy outlines a process for lodgement and investigation of complaints against public entities. The Victorian Competition and Efficiency Commission (VCEC) is responsible for the conduct of independent investigations of complaints. Further information can be found at the VCEC website
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