Australian PM Pledges Crackdown on Supermarket Price Gouging Ahead of Election

SYDNEY, 30 March 2025 (BSS/AFP) – Australia's Prime Minister Anthony Albanese has vowed to outlaw supermarket price gouging, threatening major retailers with heavy fines as part of his government’s campaign to address the rising cost of living. The announcement comes ahead of a tightly contested general election set for 3 May.

The proposed crackdown on supermarkets, alongside a surprise income tax cut, forms part of a broader strategy to ease financial pressures on Australians, with affordability concerns remaining a top priority for voters. Recent polls indicate the centre-left Labor government and the conservative opposition are in a dead heat.

Government's Commitment to Fair Pricing

"Australians deserve a fair go at the checkout. We will hold the big supermarket chains to account," Albanese told reporters, pledging to introduce legislation later this year.

He specifically condemned excessive price increases, stating, "Price gouging is when supermarkets are taking the piss."

When asked about enforcement measures, the Prime Minister outlined plans for "heavy fines to make sure that they know that if they're ripping people off, then they're in the gun to pay a heavy penalty."

To oversee the initiative, the government intends to establish a task force comprising representatives from the Treasury, competition regulators, and consumer advocacy groups. Albanese also indicated that Australia would examine regulatory models used in Britain and the European Union to curb unfair pricing practices.

A Highly Concentrated Market

Australia has one of the most concentrated grocery sectors globally, with major players Coles and Woolworths holding significant market dominance, limiting competition.

A recent report by competition regulators highlighted that both companies have expanded their profit margins and have “limited incentive to compete vigorously with each other on price.”

Opposition’s Response

James Paterson, a senior figure in the opposition Liberal Party, criticised Albanese’s proposal, arguing that the Prime Minister had failed to clearly define price gouging.

"We are very happy to make price gouging illegal," he told ABC, but also advocated for additional measures, including "targeted divestment powers," which could be used as a "last resort" if supermarkets were found abusing their market dominance.

Opposition leader Peter Dutton has proposed alternative cost-of-living relief measures, such as a one-year cut to the fuel tax and a policy mandating gas producers to reserve a portion of output for the domestic market to stabilise energy prices.

Election Impact and Economic Outlook

The debate over supermarket regulation unfolds against a backdrop of declining inflation, which stood at 2.4% in the last quarter of 2024, a significant drop from the 7.8% peak recorded in 2022.

A YouGov poll released on Sunday showed support for Labor and the opposition coalition virtually tied, with Labor at 50.2% and the coalition at 49.8% on a two-party preferred basis. According to the analysis, this outcome would likely result in a hung parliament, leaving Labor just one seat short of a majority. Despite this, the report suggested the government remains in a "strong" position to retain power.

With only weeks remaining before the election, both parties are expected to intensify their campaigns, focusing on economic relief measures that resonate with everyday Australians.