32 new Bills were passed by Parliament on its last sitting day (Thursday 28 November). Given the focus on the new Aged Care Act, the aged care sector could be forgiven for missing significant competition law reforms which are likely to impact a very large number of aged care mergers and acquisitions.
From 1 January 2026, all deals meeting specific thresholds must be notified to the Australian Competition and Consumer Commission (ACCC) and cannot proceed unless explicitly cleared by the ACCC after the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 was passed last week.
Prior notification will also be an option for deals under negotiation in 2025. The thresholds are yet to be formalised but are much broader than under the current voluntary disclosure regime.
Law firm Russell Kennedy is very active in aged care M&A and has been keeping close watch on the reforms and likely impact. You can read their detailed alert here.
Commenting on the reforms, Russell Kennedy Principal Rohan Harris told The Weekly SOURCE:
“The new laws will cast a very wide net over a large number of aged care M&A deals, and they are likely to be designated as ‘competition hotspots’ for special focus by the ACCC.”
“Notification and clearance requirements will no longer be limited to large portfolio acquisitions. They will extend to smaller acquisitions by so called ‘serial acquirers’, private equity investment and deals between established approved providers.”
“Parties to transactions will also need to consider the knock-on impacts including transaction timeframes, confidentiality given notifications will go on a public register, and the application fees which are likely to range from $50,000 to $100,000 per deal.”
Watch this space then for aged care M&A in 2025 and beyond.