Key Points
- The Australian Competition and Consumer Commission has been given an extra $30 million to target supermarkets.
- The watchdog is currently carrying out an investigation into supermarket prices.
- Rising prices of supermarket goods mean Australians are struggling to afford food.
The Australian Competition and Consumer Commission (ACCC) will receive $30 million in support to crack down on “unfair” practices by supermarkets and retailers.
Prime Minister Anthony Albanese said he had warned supermarket giants over their “questionable practices”.
“We don’t want to see ordinary Australians, families and retirees being walked around supermarkets, and we’re taking steps to make sure they get a fair chance at the checkout,” he said .
The extra money will help the ACCC carry out more investigations and enforcement.
This will help the consumer watchdog monitor behavior and investigate concerns about the erroneous justification of higher prices.
Treasurer Jim Chalmers will also work with states and territories to reform planning and zoning regulations to make the supermarket sector more competitive by opening more sites for new stores.
“We are taking decisive action to help Australians get fairer prices at supermarket checkouts, in stores and online,” he said.
“Increased funding for the ACCC will help make prices fair, boost competition and ensure meaningful consequences for supermarkets that make mistakes.”
Current planning regulations are seen as a barrier to competition by preventing business entry and expansion.
Households are suffering under the weight of cost of living pressures as inflation persists and mortgage repayments remain high.
Labor hopes hip pain will be eased with the Reserve Bank’s rate cut ahead of the federal election, which is due to take place by May 2025.
The ACCC announced last week that it was taking through reduced price claims.
The government also published for consultation a new mandatory food and grocery code, which would impose multimillion-dollar penalties on businesses for serious violations.
