Overview
- The government amended the Food and Grocery Code to prohibit very large retailers from charging prices deemed excessive relative to cost plus a reasonable margin, starting July 1, 2026.
- The ACCC will police the regime with a A$30 million funding boost and can seek penalties of A$10 million per breach, three times any benefit, or 10% of turnover if the benefit cannot be determined.
- Coles and Woolworths criticised the law as targeting two Australian-owned chains and creating an uneven playing field that could lift prices, with Coles noting profit of about A$2.43 per A$100 of sales.
- The Australian Retailers Association and Business Council argued there is no evidence of excessive pricing and warned compliance burdens could raise grocery costs.
- The reforms follow an ACCC inquiry that found high concentration and rising margins at major chains but made no conclusive finding of price gouging.