Treasurer Jim Chalmers visits Specialty Metals in Welshpool.
UPDATE: Australia’s Federal Government has just announced a groundbreaking ban on price gouging by supermarkets, effective July 2024. This decisive action aims to combat soaring grocery bills and fulfills a key election promise from the Albanese Government.
Under the new regulations, “very large retailers” will face strict prohibitions against charging excessive prices compared to supply costs with a “reasonable” profit margin. Supermarkets found violating these laws could incur fines up to $10 million, or three times the benefit gained from the price increase. If the benefit is unclear, fines could reach 10 percent of the company’s turnover over the past year.
The Australian Competition and Consumer Commission (ACCC) will be tasked with enforcing the new rules, backed by an additional $30 million in funding. Federal Treasurer Jim Chalmers emphasized that this crackdown is designed to alleviate financial pressure on Australian families.
“We’re cracking down on supermarket price gouging to help Australians get a better deal at the checkout,” Chalmers stated. He highlighted that the new law will ensure large retailers, including major players like Coles and Woolworths, cannot charge inflated prices.
This move follows a report from the ACCC’s inquiry into supermarkets, which revealed that while Coles and Woolworths do not compete vigorously on pricing, it did not classify grocery prices as “excessive.” However, shortly after the report’s release, the Labor party pledged to implement laws against price gouging as part of their campaign.
Chalmers noted that the government is actively holding supermarkets accountable. “Whether it’s boosting funding for the regulator, banning price gouging or making the food and grocery code mandatory, we’re doing everything we can to ease pressure on Australians,” he said.
The urgency of this announcement resonates with consumers who have been struggling with rising costs at the checkout. As grocery prices continue to challenge household budgets, this new legislation is poised to deliver necessary relief to families across Australia.
In the coming months, consumers will be watching closely to see how these regulations are implemented and enforced. The effectiveness of this initiative could reshape the grocery landscape and provide much-needed financial relief for Australian households.
Stay tuned for further developments as the Albanese Government moves forward with these vital changes to protect consumers.
