The cost of living has surged to the forefront of Australia’s federal election campaign, placing the pricing practices of supermarket giants under intense scrutiny.
With inflation and household bills continuing to climb, political leaders are translating public frustration into policy pledges aimed at curbing corporate power. The Australian Competition and Consumer Commission (ACCC) recently completed a year-long inquiry into supermarket pricing.
While it found no clear evidence of price gouging by Coles or Woolworths, the sector’s profitability and market dominance remain in focus. This has sparked a legislative push from both the Labor and Coalition parties to address perceived consumer exploitation.
Political Parties Promise Action Despite Regulator’s Findings
Prime Minister Anthony Albanese has pledged to make price gouging illegal if re-elected, arguing such a law would bring Australia in line with jurisdictions like the UK and the US.
Speaking on ABC’s Insiders, he announced that a new task force would be created to advise on implementing excessive-pricing laws by the end of the year.
Finance Minister Katy Gallagher supported the initiative, stating it would give the ACCC another tool to respond to “excessive” pricing concerns. She acknowledged that the ACCC did not uncover unlawful conduct but said the inquiry highlighted major price hikes and the growing market power of supermarkets.
Opposition Leader Peter Dutton, meanwhile, proposed a more aggressive approach, suggesting the Coalition would use divestiture powers to tackle anti-competitive behaviour. According to him, breaking up dominant players may be necessary to restore fairness in the retail grocery sector.
Industry Defends Pricing as Response to Rising Operational Costs
In response to the allegations, Coles and Woolworths have strongly rejected claims of misconduct. Both companies emphasised that the 24 per cent price increase over five years reflects the broader rise in operational costs, including fuel, freight, labour, energy, and insurance.
A Coles spokesperson stated that the company’s pricing is a response to “the increased cost of doing business,” and called for policies that address those core drivers. Woolworths Group, in its statement, pointed out it had submitted extensive data to the ACCC and implemented several of the inquiry’s transparency recommendations.
According to Professor Gary Mortimer, from the Queensland University of Technology, supermarkets are being unfairly targeted. He argued that political focus on grocery pricing oversimplifies complex economic challenges, calling it a “distraction strategy”. Mortimer added that laws against price gouging would have limited effect unless input costs are reduced.
