Australia Unveils Largest Merger Reforms in Nearly 50 Years

Australian Federal Treasurer Jim Chalmers is set to introduce a historic bill into Parliament on Thursday, marking the most significant overhaul of Australia’s merger regulations in nearly five decades. The reforms, designed to modernize the country’s competition framework, aim to make merger reviews faster, stronger and more transparent.

Currently, Australia is one of only three OECD countries that does not require businesses to compulsorily notify authorities of mergers. Merging entities are not obligated to inform the Australian Competition and Consumer Commission (ACCC) or wait for its approval before completing transactions. According to Capital Brief, the absence of such a requirement has long been seen as a gap in the country’s competition safeguards.

The new legislation, set to come into effect on January 1, 2026, will significantly change the landscape. Mergers will now be subject to mandatory notification if they meet specific financial thresholds. This includes cases where the combined Australian turnover of the merging businesses exceeds $200 million, or where a very large company with Australian revenue over $500 million acquires a smaller entity or assets worth more than $10 million. According to Capital Brief, the reforms are expected to capture all deals involving cumulative turnover from acquisitions in the same sector over three years exceeding $50 million—or $10 million if a large business is involved.

One of the key aspects of the proposed reforms is the introduction of a 30-working-day review period for mergers. The ACCC will have this time to determine whether a merger poses a threat to market competition. If no concerns are raised within this window, the merger can proceed. Per Capital Brief, this streamlined system is expected to reduce bureaucratic delays and standardize the notification requirements for businesses.

Another major change is the empowerment of the ACCC, which will become the sole decision-maker on all mergers under the new regime. The regulator will have greater visibility over merger activity and be better equipped to block deals that create, strengthen, or entrench substantial market power. The reforms also target anti-competitive practices by fast-tracking less contentious mergers while focusing scrutiny on those deemed potentially harmful to competition.

The voluntary phase of these changes will begin on July 1, 2025, allowing businesses time to adjust to the new requirements before they become mandatory in 2026.

Australia has seen a surge in merger activity in recent years, with over 1,400 mergers recorded last year alone, valued at approximately $300 billion. The ACCC reviewed an average of 330 mergers annually over the past decade—just a quarter of the total number of deals completed. According to Capital Brief, the new reforms will ensure that the ACCC can monitor a broader range of transactions and intervene where necessary to protect market competition.

Source: Capital Brief