|
Topic: Supermarket Prices
|
|
|
Consumer protections are paramount for us which is why we are tackling the supermarket sector, the aviation sector, excessive debit card charges and scams to name a few.
We are scrutinising supermarket behaviour to help you get a fair price at the checkout.
Alleged misconduct in the supermarket sector deserves forensic analysis and a robust response especially at a time when household budgets are under pressure.
The Albanese Labor Government is taking decisive action to help consumers get fairer prices at the checkout and ensure farmers are treated justly.
The landmark ACCC inquiry into Australia’s supermarket sector, the first in 16 years, running over 2024 and early 2025, released its interim report in late September 2024. See here for more information.
|
|
|
The Australian Competition and Consumer Commission announced on 23 September that it is taking legal action against Coles and Woolworths for allegedly misleading customers through dodgy discount claims on over 500 products.
The ACCC’s allegations relate to products sold at regular long-term prices which remained the same, excluding short-term specials, for at least six months and in many cases for at least a year.
The products were then subject to price rises of at least 15% for brief periods, before being placed in Woolworths’ ‘Prices Dropped’ promotion and Coles’ ‘Down Down’ promotion, at prices lower than during the price spike but higher than, or the same as, the regular price that applied before the price spike.
|
|
|
The ACCC alleges the conduct involved 266 products for Woolworths at different times across 20 months, and 245 products for Coles at different times across 15 months.
You can read about the ACCC action here.
In the wake of this action, the Prime Minister and the Treasurer have provided around $30 million to beef up the ACCC to conduct more investigations and enforcement in the supermarket and retail sectors.
|
|
|
The ACCC has highlighted that the large supermarkets purchase and sit on undeveloped land to keep competitors out. This is called land banking.
The Treasurer will work closely with states and territories through the Council on Federal Financial Relations to reform planning and zoning regulations, which could help boost competition in the supermarket sector by opening up more sites for new stores.
|
|
|
Current planning and zoning rules are acting as a barrier to competition by inhibiting business entry and expansion. They potentially allow land banking, preventing competition and pushing up prices in our local communities.
|
|
|
The Albanese Government is taking action to fight shrinkflation in our supermarkets and retail sector by strengthening the Unit Pricing Code to make it easier for Australians to compare products.
Changes to the Unit Pricing Code will be linked to significant penalties.
The practice of ‘shrinkflation’ is becoming increasingly common, where the size of a product is reduced, but the price at the supermarket stays the same or even increases.
|
|
|
Unit pricing helps consumers spot good value for money by being able to see the price of products by their volume, weight or per unit – so they aren’t tricked by unchanged packaging hiding less product.
To make sure unit pricing is helping Australian shoppers, the Government will be strengthening the Unit Pricing Code to ensure supermarkets are providing the information Australians need to find the best deal.
The Government will consult on improvements to the Code like:
|
|
As part of Labor’s work to reduce inflation and encourage competition, we funded consumer group CHOICE to conduct quarterly price monitoring of the major supermarkets.
We’re giving Australians the information they need to get the best deal on their groceries.
The second report which includes data for 104 stores across Australia was released on 26 September. The comparison looks at the average cost of a basket of groceries in each state and territory.
|
|
|
The Food and Grocery Code of Conduct is the rule book retailers, wholesalers and suppliers should follow in their commercial dealings. It covers issues like price increases, delisting of products, threats to disrupt or terminate business, payment timelines, responsibility for funding promotions and standards and quality of fresh produce.
Economist and former Competition Minister, Craig Emerson’s independent Review of the Code found that the current voluntary version is failing to address the imbalance of bargaining power between supermarkets and their suppliers, including farmers.
The government has adopted all the recommendations Dr Emerson made in his independent review of the Code, from April 2025.
This includes:
|
|
|
We understand that company mergers have genuine economic benefits and are an important feature of any healthy economy but some mergers can cause serious economic harm. For example, Australia has one of the most concentrated supermarkets sectors in the world with the majors controlling 65% of market share (2023).
Under new legislation, there will be a mandatory notification system for mergers above certain thresholds and the ACCC will get involved.
There will be three key thresholds:
-
Any merger will be looked at if the Australian turnover of the combined businesses is above $200 million, and either the business or assets being acquired has Australian turnover above $50 million or a global transaction value above $250 million.
-
The ACCC will look at any merger involving a very large business with Australian turnover more than $500 million buying a smaller business or assets with Australian turnover above $10 million.
-
To target serial acquisitions, all mergers by businesses with combined Australian turnover of more than $200 million where the cumulative Australian turnover from acquisitions in the same or substitutable goods or services over a 3-year period is at least $50 million will be captured, or $10 million if a very large business is involved.
The thresholds will be reviewed 12 months after coming into effect, to ensure they are working as intended.
In addition, the legislation provides flexibility to allow the Treasurer to adjust and calibrate the thresholds to respond to evidence‑based concerns from the ACCC about high‑risk mergers, like in the supermarket sector.
This power, combined with the thresholds, will give the ACCC greater reach including notification of every merger in the supermarket sector.
|
|
There are more actions to come. The final report for the ACCC’s inquiry into Australia’s supermarket sector is due to be provided to the Government by 28 February 2025 but the interim report which makes for interesting reading can be accessed here.
|
|
|
|
With caring parents and professional staff at Little St Margaret’s Kindergarten, Malvern
|
|
|
In August, the Albanese Government announced a 15% wage increase for Early Childhood Education and Care (ECEC) workers.
This wage increase will be tied to a commitment from Child Care Centres to limit fee increases. We want to make sure workers can be fairly paid without the costs being passed on to families.
This commitment will help retain our existing early childhood educators, who are predominately women, and attract new employees.
By improving access to quality early childhood education and care we can also boost productivity and workforce participation in the short and long-term
The increase will be phased in over two years, and includes a 10% increase from December 2024, and a further 5% increase from December 2025.
This means a typical ECEC educator who is paid at the award rate will receive a pay rise of at least $103 per week, increasing to at least $155 per week from December 2025.
ECEC workers are some of the most important workers in the country and they deserve more than thanks, they deserve to be paid properly.
|
|
|
|
At Gardiner Pre-School, Glen Iris, a fantastic community-run kinder open since the 1940s, at risk of closure due to the Uniting Church’s decision to terminate its lease. Please access the Pre-School's website here for templates to send to Stonnington Council, the State Government and the Uniting Church to advocate for the Pre-school's survival.
|
|
|
Australia is a vibrant melting pot – lets celebrate what’s good and strengthen our social bonds. This program will fund grassroots community organisation projects up to $100,000 over 2 years from 2024-25 that support activities such as:
encouraging social participation of isolated community members and interactions among different cultural, ethnic, and social groups.
Applications opened: 8 October 2024
Applications close: 4 November 2024
Further information is available here.
Community organisations can apply through GrantsConnect. On this page, you can search for current Grant Opportunities or click the ‘View All’ button to see all open grants. Applications can be lodged on GrantsConnect.
|
|
|
Official Portraits of King Charles III Now Available
Photographic portraits of His Majesty King Charles and Her Majesty Queen Camilla are now available for Higgins residents and organisations. They can be collected from my office, Level 1, 261 to 271 Wattletree Road Malvern from 9 am to 5 pm weekdays.
|
|
|
On 28 October 2024, Telstra and Optus will switchover their 3G network to better enable 4G and 5G technology for all Australians. Vodaphone has already made the change.
Note that all 3G phones but also other 3G devices such as tablets and medical alarms will be affected by this change.
A subset of 4G devices may also not be able to call Triple Zero after the switchover, as a result of how they’ve been manufactured.
The Government has set up a cross-industry working group to make sure people with affected devices are identified and contacted – however there are steps you can take right now to check if you need to take action.
Simply text ‘3’ to ‘3498’ to receive an instant reply on whether your mobile handset could be impacted by the 3G switchover.
Do not call 000 to check.
Please read the detailed information here to find out more.
|
|
|
Items in green have passed in both Houses of Parliament.
|
|
|
Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024
Australian Naval Nuclear Power Safety (Transitional Provisions) Bill 2023
Australian Naval Nuclear Power Safety Bill 2024
Crimes and Other Legislation Amendment (Omnibus No. 1) Bill 2024
Customs Tariff Amendment (Comprehensive and Progressive Agreement for Trans-Pacific Partnership Expansion) Bill 2024
Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023
Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024
Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023
Universities Accord (National Student Ombudsman) Bill 2024
Universities Accord (Student Support and Other Measures) Bill 2024
|
|
|
Sacré Cœur is an independent Catholic girls’ college in Glen Iris with a proud history of over 100 years.
It was a delight to welcome the Year 11 Politics class to my office for a Q&A on democracy on 19 September.
We delved into everything from fair and free elections to accountability, transparency and human rights. Seeing our next generation passionate about keeping our democracy strong fills me with hope and motivation to challenge the status quo.
Who knows – maybe there was a future parliamentarian in the room!
|
|
|
Caulfield Grammar and De La Salle College visit Parliament House
|
|
|
It was a pleasure to welcome junior school students from Caulfield Grammar and De La Salle College to Parliament House on 9 and 10 October. As always, I was impressed by their insightful questions and curiosity about our democratic process.
|
|
|
|
With De La Salle students at Parliament House
|
|
|
MLC – Celebrating International Day of the Girl
|
|
|
In early October, I had the pleasure of meeting our next generation of leaders at this wonderful school. I was joined by Dr Monique Ryan and Ms Amelia Hamer for a Women in Leadership Panel with MLC’s Year 6 students.
The students asked thoughtful and interesting questions regarding my journey in politics, the people who inspired me, and the advice I have for young women who want to become leaders in the future.
I encourage all students to keep advocating for the issues you care about, and to keep looking for opportunities to grow and challenge yourselves. Your voices and leadership matter.
|
|
|
Carnegie Memorial Swimming Pool
|
|
|
The redeveloped Carnegie Memorial Swimming Pool, is on track to open this summer! I was delighted to check its progress.
Assisted by a $15 million contribution from the Albanese Government, this upgraded year-round aquatic and leisure facility is an intergenerational investment in our community’s health and wellbeing.
It will have five pools, including two indoor swimming pools and splash pool for the little ones, along with heaps of outdoor space for family BBQ’s and summer relaxing.
I’d like to thank the council, the construction company ADCO, the hundreds of construction workers including apprentices, and the community for backing this project.
|
|
|
Genuine political representation stems not just from decisions made in Canberra but through active engagement within our community. I welcome your thoughts, concerns, and ideas.
Pop into my mobile offices for a chat. See you there!
See all coming Mobile Offices here.
|
|
|
Warmest wishes till next time,
|
|
|
|
