Application of the Competition and Consumer Act to the professions

Competition provisions

The Competition and Consumer Act 2010 (previously called the Trade Practices Act 1974) has, since its inception, applied to the businesses of all incorporated professionals. Since 1996, professionals operating through partnerships or as sole practitioners have also been subject to the competition provisions of the Act through the competition codes enacted in each state. The competition codes mirror Part IV of the Competition and Consumer Act but apply to 'a person' rather than 'a corporation'.

Consumer protection provisions

Professionals' dealings with consumers are covered by the Australian Consumer Law (ACL) which is contained in a schedule to the Competition and Consumer Act. The ACL applies to all professionals, regardless of whether they are incorporated or not.

Legislative review

As part of national competition policy reforms, state and territory governments have all reviewed their legislation with a view to removing regulations that impede competition in professional service markets. To the extent that regulation cannot be justified (on the grounds that it provides a net benefit to the community and is necessary to achieve the government's legislative objectives. National competition policy requires that the regulation be repealed.

State legislation continues to impose competition restraints in a number of areas; one common example is a professional registration board that is established by legislation and given the power to determine educational or other prerequisites to enter the profession.