Competitive Neutrality: OECD Recommendations and the Australian Experience

Abstract The OECD in May 2021 adopted a recommendation that governments “ensure competitive neutrality to the maximum extent practicable and unless overriding Public Policy Objectives require otherwise.” This article discusses practical issues surrounding the formal implementation of competitive neutrality in a jurisdiction, using the well-established Australian framework as an exemplar. It illustrates the strengths and weaknesses of the Australian system and provides guidance to other jurisdictions in formulating their approaches to implementing the Recommendation. It demonstrates that implementation of competitive neutrality at a practical level is a complex exercise, which demands both strategic vision and detailed planning.