The Victorian Government's Competitive Neutrality Policy is to ensure that significant government businesses compete fairly in the market.
The policy sets out the Victorian Government's approach to competitive neutrality. It requires government entities (including Councils) to apply competitive neutrality principles where appropriate, to account for advantages arising solely from public ownership.
Better Regulation Victoria (BRV) supports the Commissioner to consider complaints made under the policy.
In 2000, the Department of Treasury and Finance published a practical guide to applying the Competitive Neutrality Policy.
Competitive Neutrality Guide to Implementation(opens in a new window)PDF 1015.73 KBAdditional guidance notes
BRV has developed the following additional guidance to supplement the Competitive Neutrality Policy and Guide to Implementation.
Guidance Note - the Commissioner for Better Regulation and Competitive Neutrality(opens in a new window)Word 121.63 KBGuidance note - Identifying significant business activities for competitive neutrality(opens in a new window)PDF 1014.69 KBGuidance Note - Cost Allocation Methodology(opens in a new window)Word 50.09 KBState Government agencies and local governments follow a four-step process to apply the Competitive Neutrality Policy.
Identify significant business activities
Government entities are responsible for considering the Competitive Neutrality Policy and guidance described above and determining which of their activities fall within scope of the policy.
Assess the benefits and costs
For a significant business activity, government entities should assess the benefits and costs of introducing competitive neutrality policy measures.
Conduct a public interest test (when required)
In some cases a significant business activity operates in part to achieve social, environmental and other policy objectives.
Where the implementation of fully cost-reflective pricing or other competitive neutrality measures may compromise other public policy objectives, the government entity should conduct a public interest test to demonstrate the case for not implementing the measure.
Implement competitive neutrality measures
Government entities are required to implement competitive neutrality measures to significant business activities where it is in the public interest to do so.
Where a private business, or other affected party, considers a government entity has not correctly applied the Competitive Neutrality Policy, they can:
- in the first instance, discuss the concern with the relevant agency
- contact the secretariat to discuss whether the issue might be in scope of the Competitive Neutrality Policy
- consider making a formal complaint.
Understanding the role of the Commissioner and BRV’s complaint handling process
After a complaint has been lodged, the BRV undertakes a preliminary assessment to decide whether to advise the Commissioner to accept the complaint. This assessment is based on relevant information from the complainant, the BRV’s own desktop research and, where appropriate, the relevant government agency.
Key issues that the BRV considers in making a decision include:
- whether the activity is a significant business and in scope of the Competitive Neutrality Policy
- the evidence supporting the complaint
- the annual turnover of the government activity
- the relevance of the government activity to the complainant.
The Commissioner does not accept complaints considered frivolous, vexatious or outside the scope of the Competitive Neutrality Policy.
After assessing the complaint, the Commissioner will notify the complainant of her decision to:
- not accept the complaint and explain why
- accept the complaint for investigation
- accept the complaint but take non-investigative action to resolve the issue.
When a complaint has been accepted the Commissioner will:
- investigate to establish whether there is a breach of Competitive Neutrality Policy
- prepare a draft investigation report for review by the Commissioner
- provide the draft investigation report to the complainant, government agency and responsible government department for comment on a confidential basis
- consider responses and, where appropriate, revise the report
- distribute the final report, including recommendations for the government agency to action
- take follow-up action to check the steps taken by the Government agency to implement the recommendations.
Many factors can influence the time required to properly assess a complaint including:
- the type of government activity subject to complaint
- the complexity of the complaint
- the availability of information to assess the complaint.
If you believe your business has suffered because of a Victorian Government agency or local government not following the Competitive Neutrality Policy, you can contact BRV to discuss this or make a complaint.
The Commissioner considers written complaints submitted on the competitive neutrality complaints proforma. Required information includes:
- a description of the nature of the business affected, including any special features that the Commissioner needs to be aware of
- the identity of the government agency
- a summary of the complaint and description of the type of unfair advantage
- evidence that supports the complaint (for example, sales data and pricing information for similar products or services)
- where relevant, other supporting information - such as copies of correspondence, references to material, and images - can be included
- if the complaint includes commercially sensitive information which you do not wish to be disclosed, it should be marked clearly as “Commercial in Confidence”
Better Regulation Victoria (BRV) treats the identity of complainants as confidential unless authorised by the complainant to provide their details to other parties. In some instances, it may not be possible to preserve anonymity due to the specific nature of the complaint.
There is no filing fee for lodging a complaint.
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