The Albanese Government is banning supermarket excessive pricing from next week.
These changes protect Australian families from artificially inflated prices on their groceries.
From 1 July 2026, it will be illegal for very large retailers such as Coles and Woolworths to charge prices that are excessive, when compared to the cost of supply plus a reasonable margin.
The independent regulator, the Australian Competition and Consumer Commission (ACCC) will enforce the new laws, and any retailers found to be in breach will face the greater of the: $10 million; three times the value of the benefit derived or 10 per cent annual turnover during the preceding 12 months.
These important reforms are part of the Albanese Government’s commitment to boost competition and fairness in the supermarket sector, which includes:
- strengthening the Unit Pricing Code, including to tackle shrinkflation;
- implementing the ACCC’s recommendations to improve transparency about prices, price trends, promotions and loyalty programs in the sector;
- providing the ACCC with over $30 million to address harmful or misleading conduct in the supermarket and retail sectors;
- launching the Supporting Fresh Produce Suppliers – Food and Grocery Code Education Program, providing $2 million in grants to help fresh produce suppliers gain the skills they need to stand up to the big supermarkets;
- funding CHOICE to give shoppers more information on supermarket prices; and
- making the Food and Grocery Code mandatory with multi‑million‑dollar penalties for serious breaches.
Our competition reforms empower Australians to make informed choices at the grocery store and feel protected from unfair actions.
