Prime Minister announces remote community grocery prices to be brought in line with ‘city’ prices

The Prime Minister’s proposition of a grocery price cap on essential items in remote communities is “great news” – but not all are convinced. Find out why.

CANBERRA, AUSTRALIA - NewsWire Photos - February 10, 2025: Prime Minister Anthony Albanese acknowledges the 17th anniversary of the National Apology to Australia's Indigenous Peoples and Closing the Gap Annual Report and Implementation Plan at Parliament House in Canberra. NewsWire / Martin Ollman

A proposed remote community grocery price cap by the Prime Minister is being heralded as “great news”, but one health service provider says “the challenges go beyond the cost” for residents living hundreds of kilometres out of Alice Springs.

On Monday, Prime Minister Anthony Albanese used his Closing the Gap speech at Parliament House to announce of the cost of 30 “essential products” in 76 remote communities would be capped to the same price people would “pay in the city”.

Prime Minister Anthony Albanese delivers the Closing the Gap Annual Report in Canberra. NewsWire / Martin Ollman

Warehouse capacity will also be boosted in a bid to shorten freight distances, Mr Albanese said, but did not name which communities would benefit.

The essential products are flour, toilet paper, nappies, some fresh produce, milk, canned tuna, beef, chicken, rice, bread, and more.

Central Land Council chief executive Les Turner called the announcement “great news for our people”.

“They have been crying out about unaffordable food and other essentials in their communities. For many years they have struggled with prices that are 40 per cent higher than at the major supermarkets in town,” he said.

“We can’t beat the epidemic of diabetes, kidney disease and rheumatic fever that is shortening our lives if we can’t afford healthy food.”

Out in Kintore, Pintupi Homelands Health Service chief executive Dr Leander Menezes called the announcement a “positive step toward addressing affordability” and looked forward to seeing it implemented.

Kintore-based Pintupi Homelands Health Service chief executive Dr Leander Menezes. Picture: Supplied

“However, in a community like Kintore, located 530 km west of Alice Springs, the challenges go beyond cost,” he said.

“Reliable supply chains, consistent stock availability, and the long-term sustainability of this initiative will be critical in ensuring real, lasting benefits for remote communities.

“Any measure that reduces financial strain on families and improves food security is a step toward closing the health gap, but it must be done in a way that is practical, sustainable, and responsive to community needs.”

An aerial view of Canteen Creek, a remote community 267km southeast of Tennant Creek.

Mr Albanese used his speech to reference an investigation by consumer group Choice, whose investigation in grocery pricing in remote communities in October last year found residents were paying more than double what residents would pay in the city.

Choice determined a basket of groceries – averaged across Coles, Woolworths, Aldi, and IGA – cost on average $44.70 in metropolitan areas in Australia.

Comparatively, in remote communities the same basket cost $99.38, according to Choice.

The consumer group visited four remote communities in the NT and WA – where they found the same basket of groceries cost $110.82 in a community in the West Daly region.

Originally published as Prime Minister announces remote community grocery prices to be brought in line with ‘city’ prices