The Federal Government recently wrapped up a consultation process on supermarket unit pricing. While it might sound like a purely consumer issue, the changes could have significant commercial impacts for businesses that supply products into the grocery sector.

On 1 September 2025, Treasury opened consultation on strengthening the Retail Grocery Industry (Unit Pricing) Code of Conduct. Submissions closed just a few weeks later, on 19 September 2025, marking the end of a very short window for stakeholders to have their say.

A quick recap

Unit pricing allows shoppers to compare costs per standard measure (for example, $/100g or $/litre) across different pack sizes and brands. Since 2009, large supermarkets have been required to display this information to help customers identify better value.

Until now, compliance costs have been relatively low and penalties limited. However, the Government’s review signals that tighter and more enforceable rules may soon be introduced.

Why now?

The Australian Competition and Consumer Commission (ACCC) recently conducted a supermarket inquiry that highlighted ongoing issues with transparency. While unit pricing helps consumers make better choices, there are still gaps.

The major concern is shrinkflation — when pack sizes quietly reduce while prices stay the same or even increase. With cost-of-living pressures dominating headlines, the Government is keen to rebuild consumer trust through clearer and fairer pricing.

What might change?

Proposals considered in the consultation paper include:

• Shrinkflation alerts – supermarkets may need to clearly flag when a product becomes smaller without a corresponding price reduction.
• Clearer displays – requiring larger, more prominent unit prices both in-store and online.
• Wider coverage – expanding the rules beyond major supermarkets to smaller retailers and online sellers.
• Standardised measures – eliminating confusing “per roll” versus “per sheet” comparisons.
• Civil penalties – introducing financial penalties for non-compliance.

The commercial impact

For suppliers, packaging decisions could soon come under closer scrutiny. For retailers, costs may arise from updating shelf labels, software, or e-commerce systems.

However, there are also opportunities. Businesses that embrace transparency and proactively adjust pricing and labelling systems may strengthen customer trust and stand out in a competitive market.

What you should do

Now that the consultation period has closed, Treasury will review submissions and the Government is expected to announce its response later this year.

Businesses in food, grocery, and household goods should remain alert — the final shape of the reforms could affect pricing, packaging, and compliance obligations across the sector.

At Indigo Financial, we can help you model potential compliance costs, assess financial impacts, and prepare for regulatory changes before they take effect.

Contact Indigo Financial on (08) 8212 8585 if you need help with any of your accounting and taxation needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.