Supermarkets in Australia could face huge fines for breaching the industry code. Credit: Daria Nipot/Shutterstock.

The Australian government is set to make its Food and Grocery Code of Conduct mandatory, following the completion of an independent review.

The government has accepted all recommendations of the review, which was carried out from 2023 to 2024 and led by Dr Craig Emerson.

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The federal government, in a joint statement by Treasurer Jim Chalmers, Agriculture Minister Murray Watt and Competition Minister Andrew Leigh, emphasised the move as a step towards fairness for families and farmers.  

65 bilateral meetings were held by the review with all code signatories.

Signatories include the code arbiters, the independent reviewer, suppliers, consumer, worker and business representative groups, the Treasury, the Australian Competition and Consumer Commission (ACCC) and the Department of Agriculture, Fisheries and Forestry.

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The code sets out minimum obligations and behavioural standards for retail and wholesale signatories towards their suppliers. 

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The recommendations, to be implemented in full, include significant fines for supermarket chains that fail to adhere.

The federal government announced that supermarkets with more than A$5bn in annual revenue will be mandated to comply with the code, which was previously voluntary. 

The supermarkets could face penalties of up to 10% of their annual turnover for breaching the code, which primarily governs interactions with suppliers. 

The government will also create an anonymous supplier and whistle‑blower complaints mechanism within the ACCC. 

Woolworths, Coles, Aldi and Metcash will all be affected by the new regulations.  

Woolworths reported A$48bn in Australian food sales in 2023, Coles A$37bn and Metcash A$10bn. ALDI’s earnings are not publicly disclosed.