Government Legislates $10 Million Fines for Supermarkets Engaged in Price-Gouging Starting July 1
The Albanese government is set to legislate new standards designed to prevent major supermarkets from price-gouging customers, with penalties reaching up to $10 million for companies found in violation. The legislation is scheduled to commence on July 1, 2026, marking a significant government intervention into retail pricing practices.
Treasurer Jim Chalmers announced the move as evidence of the government prioritising Australian consumers facing ongoing financial pressure. The initiative targets relief for households navigating cost-of-living challenges by preventing supermarket chains from exploiting pricing power.
The new standards will establish regulatory frameworks within which major retailers must operate their pricing strategies. Companies determined to have engaged in price-gouging will face substantial financial penalties designed as strong deterrents against anti-competitive pricing behaviour.
The legislation has garnered support across the political spectrum. Nationals leader David Littleproud expressed backing for the measure, noting its potential to protect not only consumers but also farmers and other industries affected by supermarket pricing practices. Littleproud dismissed concerns raised by supermarkets regarding compliance with the new rules, stating that retailers operating legitimately under existing codes of conduct have nothing to fear from enhanced regulatory standards.
The government will also introduce mandatory cash acceptance requirements for large retailers purchasing essential items. Supermarkets and fuel retailers must accept cash payments for essential goods under the new framework, though smaller businesses are exempt from these requirements.
The legislation represents a government commitment to addressing concerns about supermarket pricing practices that have attracted sustained criticism from consumer advocates and political figures across party lines. The regulatory framework aims to ensure competitive retail markets while protecting consumers from exploitative pricing strategies.