The Treasurer, the Hon Jim Chalmers MP
Minister for Agriculture, Fisheries and Forestry, the Hon Julie Collins MP
Assistant Minister for Competition, Charities and Treasury, the Hon Andrew Leigh MP
The Albanese Labor Government has today released the report of the Australian Competition and Consumer Commission (ACCC) inquiry into supermarket pricing and competition.
We directed the ACCC to conduct this inquiry as part of our fight for better prices and fairer deals for Australians from the supermarkets.
We know Australians have been under pressure, and a lot of that pressure is felt on the weekly shop.
Easing the cost of living is the Albanese Government's number one priority and keeping the supermarkets in check at the checkout is another way we are helping.
The ACCC's inquiry confirms the market dominance of the big supermarkets and makes recommendations to help deliver fairer prices for families and fairer deals for farmers.
As part of its initial response to the report, the Government will provide $2.9 million in the Budget over three years to help suppliers stand up to the big supermarkets.
This funding will go to fresh produce industry associations to deliver targeted education programs, ensuring suppliers understand and can enforce their rights under the Food and Grocery Code.
These programs will help level the playing field for farmers and producers, equipping suppliers with the knowledge to push back against unfair practices and secure better commercial outcomes.
The Government has already taken other significant steps to crack down on the supermarkets and address many of the issues and recommendations in the report, including:
- Increasing ACCC funding by over $30 million to go after supermarkets using misleading pricing tactics.
- Making sure the ACCC is notified of every supermarket sector merger and can scrutinise land acquisition under reforms to merger laws.
- Making it easier for new supermarkets to enter the market with incentives for the states to cut planning and zoning red tape under the revitalised National Competition Policy, backed by our $900 million National Productivity Fund.
- Clamping down on shrinkflation by strengthening the Unit Pricing Code, including penalties for breaches and making prices clearer for shoppers.
- Funding CHOICE to give shoppers more information on the best value supermarkets.
- Making the Food and Grocery Code mandatory, with tougher penalties to stop supermarkets from unfairly squeezing suppliers.
- Extending unfair trading practices protections to small businesses, including farmers and producers.
- Investing $50 million to provide access to low-cost products for remote stores and improve food security in remote communities.
We are coming at this challenge from every responsible angle because as the report highlights, the issue is complex and 'there is no silver bullet.'
The ACCC's comprehensive and evidence-based 441 page report does not support a divestiture power or the claim that breaking up supermarkets will do anything to help consumers.
The Albanese Government welcomes the report and agrees in principle with the recommendations, which build on actions the Government has already taken and will be considered as part of our existing work. The recommendations fall into four broad groups:
- Addressing planning and zoning issues to reduce barriers to entry and enhance competition, something we are already working through with the states and territories. The Government today has released guidelines for best practice in commercial planning and zoning to support state reform efforts.
- Balancing supermarket buying power with suppliers, especially farmers and producers supplying fresh food, including further changes to the Food and Grocery Code. The Government will consult on these recommendations as part of the review of the remade code within the next 18 months.
- Giving consumers more information about prices, price trends and promotions and loyalty programs to help them find the best value. We will consult on the details of these recommendations to further transparency and continue our clamp down on shrinkflation.
- Improving choice and supply in remote locations by financially supporting community owned stores, and strengthening complaints handling in remote locations. This was a significant focus of our recent investment, and we'll take the recommendations into account as we roll that out.
We will keep holding the supermarkets to account so Australians get a fair go at the checkout.
Quotes attributable to the Treasurer, Jim Chalmers:
"We are taking action to get a fair go for families at the checkout and a fair go for farmers at the gate.
"This is about ensuring Australians aren't treated like mugs by the supermarkets.
"Our ongoing supermarket crackdown means more competition, better prices and better deals for Australians."
Quotes attributable to the Minister for Agriculture, Fisheries and Forestry, Julie Collins:
"This important action will help level the playing field for Australia's farmers and producers.
"Our farmers produce exceptional, high quality food and deserve a fair go when working with the supermarkets.
"The Albanese Labor Government knows how vital our agriculture sector is to Australia, and that's why we're continuing to deliver for our hard-working farmers."
Quotes attributable to the Assistant Minister for Competition, Charities and Treasury, Andrew Leigh:
"A healthy supermarket sector should be serving up competition to ensure the big players don't put profits ahead of people.
"The ACCC report suggests stronger safeguards to stop big supermarkets from stacking the shelves in their favour.
"Labor is making sure Australians get a fair go - whether they're growing our food or buying it at the checkout."
