New price-gouging laws to hit Coles, Woolies from July 2026, Treasurer Jim Chalmers announces   
Labor has been blasted after the announcement of a new ban that would force Coles and Woolies to pay millions in fines if they failed to comply.


News.com.au
December 14, 2025

Australia’s peak retail body has slammed Labor’s new excessive pricing ban, saying it risks driving the prices of groceries up amid an affordability crisis.

Unfair grocery pricing will become illegal under the new laws, with supermarket giants facing up to $10m in fines if they breach the ban, Treasurer Jim Chalmers announced on Sunday.

Very large retailers like Coles and Woolworths will be not be allowed to charge prices deemed excessive, as compared to the cost of the supply, plus a reasonable margin.

The laws are part of changes to the Food and Grocery Code, will be enforced by the Australian Competition and Consumer Commission (ACCC).

They will come into effect on July 1, 2026.

Penalties per breach range from $10 million; three times the value of the benefit derived, or, if that value cannot be determined; 10 per cent of the company’s turnover during the preceding 12 months.

The new laws will target very large retailers, like Coles and Woolworths.

Australian Retailers Association chief executive Chris Rodwell described the measures as “subjective” and claimed it would increase “legal risk, compliance costs and uncertainty across the grocery sector”.

“Grocery prices are overwhelmingly driven by input costs — energy, freight, wages, insurance and supplier costs,” Mr Rodwell said.

“Out of a $100 basket, just $3 represents supermarket profit with essentials such as milk and fresh produce operate often operating on event lower margins.


“Regulating the profitability of individual items risks making staples more expensive, particularly for lower-income households and regional communities.

“The best way to put downward pressure on prices is to provide regulatory and tax relief.”

Coles, Woolies hit out at laws

In a statement, Woolworths described the new laws as “unprecedented” and claimed it created an “uneven playing field”.
“We acknowledge the tabling of this regulation,” a Woolworths Group spokesman said.

“Right now, we are absolutely focused on delivering the best value for customers.

“Average prices in Woolworths Food Retail have declined year-on-year for seven consecutive quarters, bringing lower prices for customers.

The changes would gives Australians a “fairer go” at the checkout, Treasurer Jim Chalmers said.   

“This includes our Lower Shelf Prices commitment which includes more than 800 products, delivering average savings of 12.6% for customers since August.

“Today and every day, we compete vigorously for every item in our customers’ baskets.

“The law is unprecedented by targeting only two Australian-owned companies, creating an uneven playing field which will see much larger, foreign-owned retailers free to charge customers whatever they want, without any of the new proposed restrictions.”

Coles claimed the new rules would place “upward, not downward” pressure on prices, in a statement.

“Coles is committed to easing pressure at the checkout for Australian families,” a Coles spokesman said.

“For every $100 customers spend at Coles, we make around $2.43 in profit – less than 3 cents in the dollar.

“We urge the Government to tackle the real drivers of higher grocery prices for Australian families.

“Increasing regulation is likely to put upward, not downward, pressure on prices. At a time when the focus should be on easing cost-of-living pressures, these regulations risk doing the opposite.

Coles was critical of the new laws and claimed it could risk making groceries more expensive.

“Australia’s grocery sector is highly competitive, and carving out large multinationals and other major players from this legislation does not reflect how Australians shop and risks weakening competition.”

‘Fairer go’: Chalmers   

Mr Chalmers defended the crackdown on price-gouging, saying it built on a key Labor election commitment and would help Australians already struggling to put food on the table during an affordability crisis.

“This is all about making sure that families and pensioners get a fairer go at the checkout,” he said.

“We know that people are under pressure.

Value to customers comes last, if any at all.
I’m having to use my calculator now to check totals in docket receipts.
Because every new year it seems to go that much higher!
And most annoying when asked if I want a receipt… why the f… would I not want a receipt to check any over charges?
Today is a prime example, charged 13.98 instead of 11.98.
And a few days ago double charged $1 on a $1 item.
It’s adding up  in their favours!

So tell me….how many here, check their docket receipts?

greggerypeccary wrote on Jan 11^th, 2026 at 12:25pm:


Become a shareholder.

freediver wrote on Jan 11^th, 2026 at 1:58pm:



Come on FD -
have you been to Coles or Woolies lately?

Some of the prices are ridiculous. 

There's about 2000 full sizes Coles/Woolies in Australia with probably a few 100k employees, thousands of trucks and a mind boggling logistics network.

So lets get this straight. You want these companies to put a shop the size off a footy field in every major town one just a few KMs apart in the cities, and you want them to be stocked full to the brim with every conceivable product you can imagine, a lot of it perishables which ends up getting chucked out and not sold, and on top of all that, you want to tell them how much they're allowed to charge.

Cool story.

greggerypeccary wrote on Jan 11^th, 2026 at 4:07pm:


Renee didn't have to drive her car at an ICE agent.
Bobby doesn't have to shop at ColesWorth.

Baronvonrort wrote on Jan 11^th, 2026 at 5:23pm:


And that, has probably only been honoured maybe 3 times in 50 years I recall … other times I just get my few piddly dollars overcharged back. I wondered if that policy about full refund and keeping item was still in their policies to date.

This was in IGA and not sure what they do… but I’m going to find out next I’m in there and will let you know, I will also ask what their policy is.
If I shop further away and it happens I’m priced wrong… I keep the receipt on me just in case I happen to be nearby, but usually not.

Sophia wrote on Jan 11^th, 2026 at 10:41pm:


I have been given products for free about 3-4 times last year at Coles and Woolies.
Last one at Woolies was a dozen Oysters that were on special yet register gave higher price.
They tasted even better being free

I remind them of their policy sometimes checkout chick isn't aware of it and the supervisor does the right thing.

Not sure on IGA policy i find they're expensive only really buy Blood Orange juice from them.

Majority of my shopping is Harris farm markets they only sell food so need Coles and Woolies for everything else