Explainer: What small businesses need to know about ACCC merger reforms

Businesses planning a merger will need to seek Australian Competition and Consumer Commission (ACCC) approval under a new mandatory scheme.

The major changes are laid out in a new merger reform paper, published by the Treasury on Wednesday, which says Australia’s current voluntary disclosure system needs replacing.

Treasurer Jim Chalmers said the existing three-path system for merger approval is inefficient and allows companies to undertake mergers that significantly lessen competition.

“We will simplify and speed up the process for mergers that are in the national interest and give the regulator stronger powers to identify and scrutinise transactions that pose a risk to competition, consumers and the economy,” he said.