Implementation of the principles of National Competition Policy have led to reviews of the regulation of health professionals in all states and territories of Australia. On October 13, 1998, the Victorian Physiotherapists Registration Act 1998 replaced the previous (1978) Act. This paper identifies the critical impact of National competition policy upon the 1998 Victorian Act and examines current review processes in other states and territories. Although Competition Policy is of national interest, legislative variation between states and territories is unlikely to be diminished by current reviews. Whilst the 1998 Victorian Act will foster greater competition between health care providers, and offer greater economic choice for consumers, it does so at the cost of reduced protection of the standards of patient care.