This bill did not become law and is no longer proceeding.
Law, justice & rights
Big supermarket retailers and wholesalers with more than $5 billion in annual turnover would have to follow the grocery code, making supplier conduct rules compulsory at the top end of the market.
Rising food prices and the voluntary grocery code left suppliers exposed to a significant power imbalance with major supermarkets. The bill makes the code mandatory for retailers and wholesalers over $5 billion, adds heavy penalties, and lets the ACCCThe competition regulator that would audit big supermarket retailers and wholesalers to check they are complying with the code. audit compliance.
Australia’s grocery supply chain was already governed by a voluntary Food and Grocery Code of ConductThe supermarket supplier rules that already exist as a voluntary code, and which this bill would make mandatory for the biggest businesses., but food prices had risen 12.3 per cent over the previous two years and the bill’s backers argued that the voluntary system left suppliers exposed to the market power of the biggest supermarket chains. The bill, introduced in November 2024, proposed to make the code mandatory for retailers and wholesalers with turnover above $5 billion, add much larger penalties and ACCCThe competition regulator that would audit big supermarket retailers and wholesalers to check they are complying with the code. audit powers, but it did not pass and lapsed when Parliament was dissolved in March 2025.
The main criticism was that the bill may not go far or fast enough to curb supermarket power, because the government acted too late and stronger penalties may still be needed to deter misconduct. That reservation was raised by Nationals leader David Littleproud while supporting the bill, so the recorded criticism was limited and focused on strength and timing rather than opposing the policy itself.
David Littleproud MP introduced this bill. Speeches supporting it came from Nationals.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
144 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
Big supermarket retailers and wholesalers with more than $5 billion in annual turnover would have to follow the grocery code, making supplier conduct rules compulsory at the top end of the market.
Smaller retailers and wholesalers would stay on the current voluntary grocery code instead of moving into the mandatory rules.
Supermarkets and wholesalers covered by the mandatory codeThe part of the Food and Grocery Code of Conduct that would apply as binding law to large retailers and wholesalers. could face court penalties as high as $10 million, three times any benefit they gained, or 10% of yearly turnover.
The Australian Competition and Consumer CommissionThe competition regulator that would audit big supermarket retailers and wholesalers to check they are complying with the code. would be able to audit major supermarket retailers and wholesalers to check whether they treat suppliers lawfully, fairly and in good faith.
The Food and Grocery (Mandatory) Code of Conduct Bill 2024 will make the Code mandatory for large retailers and wholesalers in the supermarket sector who have an annual turnover of over $5 billion. The Food and Grocery Code of Conduct will regulate the standards of business conduct in the grocery supply chain.Food and Grocery (Mandatory) Code of Conduct explanatory memorandum
The current Food and Grocery Code of Conduct will continue to be a voluntary industry code for each other retailer or wholesaler.Food and Grocery (Mandatory) Code of Conduct explanatory memorandum
The Mandatory Code will have a maximum penalty of the greatest of the following - $10 million; 3 times the value of the benefit obtained that is attributable to the contravention; and if the court cannot determine the value of that benefit – 10% of turnover during the previous 12 months.Food and Grocery (Mandatory) Code of Conduct explanatory memorandum
The Commission will also be given functions and powers to conduct audits of the supermarket retailers and wholesalers to determine whether they are dealing with suppliers lawfully, fairly and in good faith; and whether the corporations are complying with the requirements of the Mandatory Code.Food and Grocery (Mandatory) Code of Conduct explanatory memorandum
Context
Australia’s grocery supply chain was already governed by a voluntary Food and Grocery Code of ConductThe supermarket supplier rules that already exist as a voluntary code, and which this bill would make mandatory for the biggest businesses., but food prices had risen 12.3 per cent over the previous two years and the bill’s backers argued that the voluntary system left suppliers exposed to the market power of the biggest supermarket chains. The bill, introduced in November 2024, proposed to make the code mandatory for retailers and wholesalers with turnover above $5 billion, add much larger penalties and ACCCThe competition regulator that would audit big supermarket retailers and wholesalers to check they are complying with the code. audit powers, but it did not pass and lapsed when Parliament was dissolved in March 2025.
Food prices rise sharply during the cost-of-living squeeze
The explanatory memorandum says food prices rose 12.3 per cent over the previous two years, making grocery costs a major household pressure and sharpening attention on supermarket conduct.
Food and Grocery (Mandatory) Code of Conduct explanatory memorandum ↗Coalition urges an earlier grocery code review and tougher rules
In the second reading speech, the bill’s sponsor said he wrote to the competition minister in December 2022 urging the statutory review to be brought forward and offering bipartisan support for a mandatory codeThe part of the Food and Grocery Code of Conduct that would apply as binding law to large retailers and wholesalers. and higher penalties.
Second reading speech ↗Bill introduced to make the grocery code mandatory for the biggest chains
The bill was introduced proposing to replace the voluntary code for supermarket retailers and wholesalers above $5 billion turnover with a mandatory codeThe part of the Food and Grocery Code of Conduct that would apply as binding law to large retailers and wholesalers. backed by court penalties and ACCCThe competition regulator that would audit big supermarket retailers and wholesalers to check they are complying with the code. audits.
Parliamentary timeline ↗Sponsor says suppliers and shoppers need stronger deterrents now
Opening the second reading debate, the sponsor tied the bill to the cost-of-living crisis and argued that major supermarkets had used their market power against both farmers and consumers.
Second reading speech ↗Bill lapses when Parliament is dissolved
The bill lapsed at dissolution, so its proposed mandatory codeThe part of the Food and Grocery Code of Conduct that would apply as binding law to large retailers and wholesalers., larger penalties and ACCCThe competition regulator that would audit big supermarket retailers and wholesalers to check they are complying with the code. audit powers were not enacted through this measure.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
Key criticism
The main criticism was that the bill may not go far or fast enough to curb supermarket power, because the government acted too late and stronger penalties may still be needed to deter misconduct. That reservation was raised by Nationals leader David Littleproud while supporting the bill, so the recorded criticism was limited and focused on strength and timing rather than opposing the policy itself.
Recorded criticism was narrow and came from a supporter seeking tougher action.
May not be tough or timely enough
David Littleproud argued the government had missed the chance to act sooner against supermarket market power and said stronger, faster penalties and deterrents were needed, suggesting the bill's enforcement approach might not be tough enough on its own.
Further sources
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Littleproud supports the bill and argues it is needed to protect farmers and consumers from supermarket market power.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This is about fairness and transparency. This isn't about fixing prices. This is simply saying that if there is a rise in the farmgate price then you should see a commensurate rise at the check-out. If there is a reduction at the farm gate in price, you should see a commensurate reduction at the check-out. It is clear that the supermarkets have played on the ignorance of many Australians who don't understand why those farm price reductions or increases happen at the time in which they happen. They've taken advantage of the farmer and the consumer, so it's important that when there is market concentration to the extent that we see here in our grocery sector that governments reach in and put in deterrents.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Lapsed at dissolution
Lapsed at dissolution
The bill reached this recorded parliamentary step.
