The Australian Competition and Consumer Commission has accepted Public Compliance Commitments from the Commonwealth Bank of Australia, the Australian and New Zealand Banking Group Corporation and Westpac Banking Corporation, ACCC Chairman, Professor Allan Fels, said today.
‘This takes to 33 the number of Australian companies that have had their Public Compliance Commitments accepted by the ACCC.
‘The firms’ senior officers have committed their companies to complying with the Price Exploitation Guidelines and the price exploitation provisions of the Trade Practices Act 1974. The commitments are part of the ACCC’s strategy to ensure that prices do not increase unreasonably as a result of the New Tax System changes.
‘The most recent commitments have been signed by:
- Mr David Murray, Managing Director, Commonwealth Bank of Australia;
- Dr David Morgan, Managing Director & Chief Executive Officer, Westpac Banking Corporation; and
- Mr John McFarlane, Chief Executive Officer, Australian and New Zealand Banking Corporation.
‘The Public Compliance Commitments are one element of the ACCC’s range of strategies to promote compliance with the law prohibiting price exploitation that includes price checking, education, awareness and enforcement activities.
‘In the case of banks, their activities will be input taxed under the New Tax System. This means that while Goods and Services Tax is not payable on most of their services, banks will not be eligible to claim input tax credits on their business inputs. They can therefore expect to incur some rise in cost under the New Tax System.
‘One important part of the companies’ PCCs is that they will provide the ACCC with cost-savings information every six months so that the ACCC can monitor savings achieved during the transition to the New Tax System.’
Professor Fels warned, however, that acceptance of PCCs does not constitute endorsement of any specific price changes made by firms, nor does it preclude the ACCC from taking enforcement action under the price exploitation provisions of the Trade Practices Act if the circumstances warrant.
Access to the public register is available via the ACCC Internet website http://www.accc.gov.au. Requests to inspect the register can also be made in person at any of the ACCC offices in each State and Territory.