From 28 March 2026, maximum penalties for competition and consumer law breaches have increased. The increased penalties apply broadly including to cartel conduct, anti-competitive conduct, misleading or deceptive conduct, unfair contract terms, and failure to notify an acquisition under Australia's new mandatory merger regime.
Increased penalties
The Treasury Laws Amendment (Doubling Penalties for ACCC Enforcement) Act 2026 (Act) amends the Competition and Consumer Act 2010 (Cth) (CCA) to increase maximum penalties for certain anti-competitive conduct and breaches of the Australian Consumer Law (ACL).
The maximum penalty for a breach of most anti-competitive conduct prohibitions and consumer law prohibitions was previously the greater of:
- $50 million (USD34 million)
- 3 times the value of the benefit obtained by the conduct
- 30% of the body corporate's adjusted turnover during the breach period
The Act increases the first limb from $50 million to $100 million (USD69 million). The other limbs remain unchanged.
Conduct subject to increased penalties
The Act was introduced to target cartel conduct and false or misleading conduct in the context of rising fuel prices resulting from conflict in the Middle East. Importantly, increased penalties are not confined to fuel companies, nor cartels and false or misleading conduct. The increase in penalties is also a permanent, ongoing increase.
The Act amends the maximum civil penalty for almost all anti-competitive conduct including misuse of market power, anti-competitive agreements and resale price maintenance. Penalties have also been increased for companies who fail to notify an acquisition that meets the specified thresholds under Australia's new mandatory merger regime. Penalties for below-threshold mergers that breach the CCA have likewise been increased.
Under the ACL, civil penalties have been increased for a broad range of conduct including misleading or deceptive conduct, unconscionable conduct and making or giving effect to unfair contract terms in consumer or small business contracts. Unfair contract terms are a targeted priority for the Australian Competition and Consumer Commission (ACCC) in 2026-27.
The Act will also increase maximum criminal penalties for cartel conduct and the criminal offence provisions of the ACL, which apply to unfair practices such as false and misleading representations, product safety offences and pyramid schemes.
New maximum penalties will apply for conduct engaged in from 28 March 2026.
ACCC seeking high penalties
Penalties for these same breaches of the CCA last increased in November 2022 from $10 million (USD6.9 million) to $50 million (USD34 million) and from 10% of adjusted turnover during the breach period to 30%.
The ACCC has continually sought high penalties for breaches of the CCA, including for conduct engaged in before maximum penalties were increased:
- In August 2023, the Australian Federal Court handed down a $57.5 million dollar penalty to BlueScope Steal Ltd for attempted cartel conduct between September 2013 and June 2014. This is the highest penalty for a competition law breach ever handed down in Australia.
- On 26 March 2026, the Australian Federal Court handed down a $1 million penalty to the executive chairman of Qteq Pty Ltd for attempted cartel conduct between 2017 and 2019. This is the highest ever penalty for a competition law breach by an individual in Australia.
Conclusions
Where Australia is feeling inflationary pressure from the conflict in the Middle East, the swift action taken by the Government to deter anti-competitive conduct that could lead to price increases for consumers will be matched by the ACCC should it become aware of any potential breaches of the law. The ACCC will seek increased penalties for anti-competitive conduct and consumer law breaches in line with its ongoing focus on enforcement action to mitigate cost of living pressures.
Businesses should be mindful that proactive compliance reviews and strong compliance culture will be essential to mitigate costly enforcement risk in a heightened regulatory environment. Businesses also need to be conscious when executing transactions that failing to notify an acquisition that meets the thresholds of the new mandatory merger regime risks large potential penalties.
Jessica Hall (White & Case, Associate, Sydney) contributed to the development of this publication.
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