The Australian Competition and Consumer Commission today met with key industry and consumer groups for constructive discussion on the ACCC's proposed new role to ensure that the benefits of tax reforms are passed on to consumers and that the prohibition on price exploitation is effective.
The ACCC listened to the views of industry on its draft guidelines on GST pricing and outlined its strategy for further development of the guidelines.
"To fulfil its responsibilities, the ACCC's primary focus will be to promote compliance and good business practice in relation to the GST," ACCC Chairman, Professor Allan Fels, said today. "In this context the ACCC aims to facilitate the delivery of the benefits of the reform to consumers, without hampering business activity.
"The ACCC will work with industry to ensure that the principles established in the Guidelines are clearly understandable, realistic and attainable."
Professor Fels emphasised that the ACCC's primary focus will be on education and awareness for both business and consumers.
"The ACCC believes that this focus, combined with the behaviour of competitive markets, will ameliorate the need for enforcement action. However, where there is evidence of blatant price exploitation the ACCC will not hesitate to act."
The ACCC recognises the impact the New Tax System will have on businesses. All businesses must look to achieve the potential savings that may be available as a result of tax reform. With this in mind the ACCC will approach its work on the basis that there may be uncertainty (especially for small business) and that most companies are not deliberately out to "rip off " consumers. Therefore the ACCC's overriding aim will be to educate business and consumers about its new role.
"The ACCC, as a public agency, will aim to be transparent in its activities. To this end enforcement guidelines detailing how, in general terms, the ACCC will investigate price exploitation complaints, will be publicly available in the near future."
The penalties for price exploitation are substantial - $10 million for a corporation and $50,000 for an individual. Compliance, therefore, is a matter that businesses should take seriously. The ACCC is exploring a number of strategies that will give businesses confidence that they are complying with the Trade Practices Act 1994 including voluntary compliance statements and education modules. The ACCC will be working closely with the Australian Tax Office to ensure businesses get the information they need to meet the government's expectations.
In April of this year, the ACCC issued Preliminary Draft Pricing Guidelines for consultation with all interested parties. The purpose of the Guidelines will be to provide direction to business on what may be considered price exploitation. At today's forum, key industry groups gave their feedback on the principles underlining the guidelines. The guidelines will be reviewed in the light of industry comment and will be finalised by 1 July 2000 in time for the scheduled introduction of first changes to wholesale sales tax.
The ACCC will take on a significant role in monitoring prices in order to report to the Government.
The ACCC has established a new GST operations group to undertake its new responsibilities. The ACCC will consult widely with industry and consumers on GST pricing matters. Further information can be obtained on the ACCC web site, , or by phoning 02 6243 1298.
The ACCC listened to the views of industry on its draft guidelines on GST pricing and outlined its strategy for further development of the guidelines.
"To fulfil its responsibilities, the ACCC's primary focus will be to promote compliance and good business practice in relation to the GST," ACCC Chairman, Professor Allan Fels, said today. "In this context the ACCC aims to facilitate the delivery of the benefits of the reform to consumers, without hampering business activity.
"The ACCC will work with industry to ensure that the principles established in the Guidelines are clearly understandable, realistic and attainable."
Professor Fels emphasised that the ACCC's primary focus will be on education and awareness for both business and consumers.
"The ACCC believes that this focus, combined with the behaviour of competitive markets, will ameliorate the need for enforcement action. However, where there is evidence of blatant price exploitation the ACCC will not hesitate to act."
The ACCC recognises the impact the New Tax System will have on businesses. All businesses must look to achieve the potential savings that may be available as a result of tax reform. With this in mind the ACCC will approach its work on the basis that there may be uncertainty (especially for small business) and that most companies are not deliberately out to "rip off " consumers. Therefore the ACCC's overriding aim will be to educate business and consumers about its new role.
"The ACCC, as a public agency, will aim to be transparent in its activities. To this end enforcement guidelines detailing how, in general terms, the ACCC will investigate price exploitation complaints, will be publicly available in the near future."
The penalties for price exploitation are substantial - $10 million for a corporation and $50,000 for an individual. Compliance, therefore, is a matter that businesses should take seriously. The ACCC is exploring a number of strategies that will give businesses confidence that they are complying with the Trade Practices Act 1994 including voluntary compliance statements and education modules. The ACCC will be working closely with the Australian Tax Office to ensure businesses get the information they need to meet the government's expectations.
In April of this year, the ACCC issued Preliminary Draft Pricing Guidelines for consultation with all interested parties. The purpose of the Guidelines will be to provide direction to business on what may be considered price exploitation. At today's forum, key industry groups gave their feedback on the principles underlining the guidelines. The guidelines will be reviewed in the light of industry comment and will be finalised by 1 July 2000 in time for the scheduled introduction of first changes to wholesale sales tax.
The ACCC will take on a significant role in monitoring prices in order to report to the Government.
The ACCC has established a new GST operations group to undertake its new responsibilities. The ACCC will consult widely with industry and consumers on GST pricing matters. Further information can be obtained on the ACCC web site, , or by phoning 02 6243 1298.