In a significant escalation of Australia’s supermarket pricing reform debate, Nationals Leader David Littleproud has called for substantially stronger enforcement mechanisms against major retailers. The political figure advocates empowering the Australian Competition and Consumer Commission (ACCC) with authority to impose multimillion-dollar infringement notices and ultimately force divestiture for repeated violations of unfair pricing regulations.
Mr. Littleproud characterized the current penalty structure—featuring infringement notices up to $198,000—as insufficient deterrents that retailers simply treat as “cost of doing business.” He proposed elevating infringement penalties to $2 million alongside implementing divestiture powers to fundamentally transform supermarket culture regarding farmer and consumer protections.
The criticism comes despite Treasurer Jim Chalmers’ December announcement establishing new legal provisions set to take effect July 1, 2026. These regulations will prohibit excessive pricing relative to supply costs plus reasonable margins, targeting very large retailers including Coles and Woolworths with potential fines reaching $10 million for serious violations.
Mr. Littleproud simultaneously accused the Labor government of delaying implementation of two specific ACCC recommendations from March 2025’s supermarket sector inquiry. These include requirements for dynamic pricing transparency and a ‘shrinkflation’ registry—measures designed to enhance consumer information and regulatory oversight capabilities.
The political confrontation occurs against Australia’s ongoing cost-of-living crisis, with Mr. Littleproud emphasizing that “tonight, there’ll be Australians that can’t afford to put dinner on the table.” The government maintains its regulatory approach fulfills election commitments and addresses affordability pressures, with Mr. Chalmers previously stating the reforms ensure “families and pensioners get a fairer go at the checkout.”