Assistant Minister for Competition Andrew Leigh revealed the findings of a government task force in a speech to the Economic Society of Australia on Tuesday.
Dr Leigh said a revitalised National Competition Policy could result in an ongoing boost to GDP of up to $45 billion, according to Productivity Commission modelling - an increase of up to $5000 a year for every household.
The commission also forecast the proposed changes would lower prices by an estimated 0.7 per cent to 1.5 per cent in the long run, he said.
One area examined by the task force was non‑compete clauses, which can be written into employment contracts to prevent or restrict an employee from joining a competitor or starting their own rival business.
These clauses have been used to unreasonably prevent workers moving to more desirable jobs in industries such as child care and the broader care sector.
Workers affected by non-compete clauses experienced a four per cent lower wage relative to comparable workers without non-competes, Dr Leigh said.
"Recent Productivity Commission modelling suggests reforming non-competes could permanently lift Australia's productivity and GDP, by allowing workers to move more easily to higher value jobs, and by facilitating firm entry and expansion," he said.
The task force, which was set up in 2023, also examined the aviation sector, finding competition had helped to "bring down prices, improve service, and give Australians more choices in the skies", Dr Leigh said.
"Because when competition works, consumers win."
The federal government has also announced it will contribute $1.2 million to jointly launch the Social Enterprise Loan Fund alongside other investors.
The fund intends to provide capital for social enterprises, especially those providing employment opportunities for people facing barriers to work.
It is specifically designed to help residents in rural, regional or remote communities, those aged 65 years and over, people with disabilities, Indigenous Australians, migrants, refugees, asylum seekers, people from culturally and linguistically diverse backgrounds, individuals with recent or current experience of homelessness and young people.
The contribution from the Commonwealth will allow the Social Enterprise Loan Fund to provide loans of up to $500,000 with a focus on lending that enables greater social impact and job creation.
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