In a move aimed at enhancing household finances and addressing economic concerns, Australia has launched an extensive review and competition inquiry into its supermarket sector. Prime Minister Anthony Albanese announced the 12-month inquiry, assigned to the Australian Competition and Consumer Commission (ACCC), marking the first such review since 2008.
The ACCC’s investigation will scrutinize changes in competition within the sector since the last review in 2008, the mechanisms of price determination across the supply chain—especially between farms and supermarkets—and potential obstacles to competitive pricing, as outlined in the joint ministerial statement on Thursday.
Albanese emphasized the government’s commitment to ensuring Australians do not pay more than necessary for essential items, stating, “My government is prepared to take action to make sure that Australians are not paying one dollar more than they should for the things they need.”
This move serves as a warning to the supermarket industry, primarily dominated by Coles and Woolworths. The review aligns with a series of measures undertaken to provide financial support to families, particularly as the center-left Labor government faces challenges in the polls.
Woolworths Group CEO Brad Banducci expressed the company’s cooperation with the ACCC inquiry and anticipated a moderation in food inflation throughout 2024. Coles, in a statement, affirmed its collaboration with the ACCC, emphasizing efforts to keep groceries affordable for Australians.
In addition to the supermarket competition review, Albanese announced adjustments to planned tax cuts. The alterations aim to reduce benefits for the wealthy while redirecting greater savings to low- and middle-income households.
This scrutiny into the supermarket sector follows the recent appointment of former minister Dr. Craig Emerson to review a voluntary supermarket industry code of conduct, assessing its potential transition to a mandatory framework. The government’s multifaceted approach seeks to address concerns related to pricing, competition, and overall economic well-being.
