Australian competition regulator Graeme Samuel says the proposed rules unveiled by Treasurer Wayne Swan last month on increasing competition in the banking sector would bring Australia into line with similar pro-competition regulations in Europe and the US.

The Australia Competition and Consumer Commission (ACCC) chairman appeared before the Senate inquiry today, throwing his support behind the new legislation aimed at preventing price signalling.

Mr Samuel remarked existing Australian laws were feeble measured alongside US and European price-signalling laws.

According to him, Australian banks and other businesses at the present system could engage in price signalling and coordination with "a wink and a nod" and without actually breaching the existing law against collusion.

He said business leaders in Australia had previously signalled their pricing intentions with a vigour that, in the US, would have regulators "on the front doorstep in a matter of minutes."

The ACCC chief has flagged a sweeping rollout of laws to eliminate price signalling across Australia. Price signalling is an issue that would affect a variety of sectors across Australia, not just banking, Mr Samuel said.

Even before implementation,many Australian businesses have already attacked the the government's proposed price signalling laws.

The Australian Bankers Association, Caltex, Melbourne University academics Caron Beaton-Wells and Brent Fisse and the Australian National Retailers Association have all expressed strong opposition to the changes.

Banks, in particular, have been fiercely opposing the proposed rules, saying these would prevent them from publicly discussing the effect of higher funding costs and would make it difficult to even give an overview on the health of the economy or discuss the direction of official cash rates.