Australia’s competition regulator now holds expanded authority to grant expedited exemptions from competition law when businesses need to act collectively during national emergencies or other declared crises, after the Competition and Consumer Amendment (Responding to Exceptional Circumstances) Bill 2026 passed into law on May 26, 2026.
The change addresses a gap the ACCC had previously identified in its existing authorisation process. While the regulator could already grant exemptions permitting businesses to coordinate with competitors, that process was considered too slow and rigid for fast-moving crisis situations. The new legislation creates a separate, faster pathway specifically tied to declared emergencies or exceptional circumstances.
The ACCC’s streamlined exemption powers are activated under one of two conditions: a national emergency declaration made under the National Emergency Declaration Act or a determination by the Treasurer that exceptional circumstances exist. The second pathway is notable in that it does not require a formal national emergency to be in place. As outlined in the bill’s second reading speech, delivered by Assistant Minister Andrew Leigh on May 25, 2026, the Treasurer’s declaration is intended to function as a pre-emptive mechanism – one that can be used when harm is foreseeable, before a situation deteriorates further.
Once either declaration is in place, the ACCC can move through two channels. Businesses can apply through a streamlined authorisation process to coordinate with competitors where that coordination would assist in addressing the declared circumstances. Separately, the ACCC can put in place class exemptions – automatic authorisations that apply across entire sectors without businesses needing to apply individually. In both cases, the ACCC must be satisfied that the coordination being exempted is directed at responding to or recovering from the declared circumstances. The regulator’s existing powers to grant authorisations on net public benefit grounds remain in place alongside the new provisions.
ACCC chair Gina Cass-Gottlieb said the regulator supports a more efficient approach to competition law exemptions during emergencies “to ensure the continued supply of essential goods and services.” She said: “We welcome the royal assent of this legislation, which recognises the importance of swift and effective exemptions processes to help Australian businesses cooperate where collective action is likely to be most effective to respond to the exceptional circumstances and support affected communities.”
On the question of how far coordination can extend, Cass-Gottlieb was direct. “The new streamlined exemption processes will help businesses to move quickly to coordinate practical responses during emergencies. The ACCC will apply clear safeguards, so coordination goes no further than necessary and impacts on competition are minimised,” she said. She also drew a firm boundary around the scope of the new powers. “Under the new streamlined exemption powers, the ACCC can only grant exemptions for activities that would likely assist in the response to, or recovery from, the exceptional circumstances which are declared,” she said. The ACCC said it would develop practical guidance and engage with businesses and other stakeholders to clarify how the processes work in practice. No release date for that guidance was provided.
The bill was brought forward in response to the ongoing conflict involving the US, Israel, and Iran, which has disrupted global oil markets. The second reading speech described the existing authorisation process as burdensome and slow, and argued that the new mechanism would allow businesses to find collaborative solutions before shortages occur, rather than responding after the fact. The speech pointed to a hypothetical application in the current crisis: businesses coordinating to reduce fuel consumption as a way of keeping supply chain costs contained, an activity that might otherwise raise competition concerns without prior authorisation. The legislation forms one part of a broader government package on fuel supply. Other measures referenced in the second reading speech include reductions to the fuel excise, removal of the heavy vehicle road user charge, a 20% reservation of gas exports for domestic use, and increased penalties for breaches of the Oil Code of Conduct.
On that last point, a separate schedule of the bill raises the ceiling on penalties available for Oil Code of Conduct contraventions. For corporations, the maximum penalty is now the greater of $10 million, three times the benefit derived from the breach, or 10% of the corporation’s annual turnover from the preceding year. For individuals, the maximum rises to $500,000. The ACCC can also issue infringement notices – 600 penalty units for corporations and 12 penalty units for individuals – for suspected breaches. Each penalty unit is currently worth $330. The second reading speech noted that the penalty structure mirrors changes made to the Competition and Consumer Act in 2024 in relation to the food and grocery code.
For those working across commercial lines, the legislation is relevant in two ways. First, the new exemption pathway may be available to insurers and other financial services firms that need to coordinate responses during a declared crisis – for example, aligning on the availability of coverage for affected industries or coordinating on claims handling for a systemic event – provided the coordination meets the ACCC’s threshold criteria.
Second, the fuel supply disruptions underpinning the legislation have direct bearing on risk exposures across a range of commercial policy lines, including business interruption, marine cargo, trade credit, and commercial motor. The government measures running alongside this legislation are likely to affect the operating environment for businesses in transport-dependent sectors, with flow-on effects for underwriters and claims teams working those portfolios.
