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Australia news live: Michelle Rowland to make repayment for 2023 family trip found to breach entitlements | Australia news

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Tom McIlroy

The federal government has taken the next step on plans to stop supermarkets from price gouging their customers.

Promised during the federal election campaign, the new ban is designed to prohibit retailers including Coles and Woolworths from charging prices that are excessive when compared to the cost of the supply plus a reasonable margin.

The new ban, delivered through the Food and Grocery Code, will come into effect on 1 July next year. The competition watchdog, the Australian Competition and Consumer Commission, will police the laws.

If Coles and Woolworths breach the laws, they face penalties of whatever amount is greater: $10m or three three times the value of the benefit derived, or 10% of the company’s turnover during the past year.

“These changes give the regulator the powers and the penalties it needs to hold supermarkets to account,” Treasurer Jim Chalmers said.

“Whether it’s boosting funding for the regulator, banning price gouging or making the food and grocery code mandatory, we’re doing everything we can to ease pressure on Australians.

“One of the best ways to ease the cost of living for Australians is to help people get fairer prices at the checkout and that’s what this is all about.”

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