The federal government is working with the competition watchdog to try and fix its dire financial position.

The Australian Competition & Consumer Commission (ACCC) revealed late last year it will run out of money in April.

Minister for Small Business Bill Billson said in a brief statement on Thursday that the federal government was actively working with ACCC chairman Rod Sims to remedy its financial predicament. Billson did not give details.

Sims told a senate hearing late last year the commission’s reserves had been run down over the past three years and it was being asked to do more as the economy grows.

He said the ACCC had undertaken voluntary redundancies and reduced travel and costs.

One of the federal government’s plans is to give the ACCC extra powers and funding to ensure price cuts from the carbon tax repeal are passed to consumers.

AAP