Anthony Albanese goes shopping by announcing supermarket inquiry as he justifies stage three tax cut backflip

Anthony Albanese has revealed an inquiry into supermarket pricing as he spells out at the National Press Club the reasoning behind stage three tax cuts.

Anthony Albanese has revealed the consumer watchdog will conduct a 12-month price inquiry into the supermarket industry — which is under pressure over price gouging — as he begins selling the government’s revamped stage three tax cuts by declaring they will help millions of women, part-time workers, young people and renters.

The Prime Minister, who is under pressure to deliver more cost-of-living relief to struggling Australians, will also announce at the National Press Club on Thursday that his government will fund consumer organisation CHOICE to allow shoppers to compare the price of thousands of products across supermarkets.

Supermarket crackdown

“Today I announce that the Treasurer will be directing the ACCC to conduct a 12-month price inquiry into the supermarket industry. The ACCC has significant powers – and it is the best and most effective body to investigate supermarket prices,” Mr Albanese said.

“To look at how things like online shopping, loyalty programs and changes in technology are impacting competition in the industry. And to examine the difference between the price paid at the farm gate – and the prices people pay at the check-out. For me, it’s this simple. When farmers are selling their product for less, supermarkets should charge Australians less.

“Today, I also announced that the government will fund consumer organisation CHOICE to provide shoppers with a clear understanding of how supermarkets are performing on this score. Because across thousands of products it can be hard for people to find the best deal. We are backing CHOICE – renowned for their commitment to consumer fairness - to provide clear and regular information on prices across a basket of goods.

“This will promote transparency, enhance competition and drive value. These actions send a very clear message – our government is prepared to take action to make sure that Australians are not paying one dollar more than they should for the things they need.”

Tax cuts sell

After a major backflip on the legislated stage three tax cuts, which has led business leaders to warn tax reform is dead in Australia, Mr Albanese has attempted to win over voters on his planned overhaul by saying the government’s definition of aspiration is “bigger and broader than just the highest income level”.

He referenced the pandemic, saying cost-of-living pressures demanded different tax policy just like the pandemic required a different economic policy through measures such as JobKeeper.

“Our aspiration is inclusive, not exclusive. Because when no-one is held back and no-one is left behind – everyone is lifted up,” Mr Albanese said.

“We know, we’ve had to deal with a global pandemic, a recession, damaged supply chains, conflict in Europe and the Middle East, rapid increases in the price of food and energy and ongoing worldwide economic uncertainty.

“And if we were to simply proceed with the old plan – promoted before any of these challenges even existed it would mean middle Australia missing out on the help they need and they deserve. And it would mean leaving out millions of women, part-time workers, young people and renters, who more than ever, deserve a government that’s on their side.

“For me, our responsibility is clear. This is the right decision, not the easy decision.”

Labor’s plan

Under Labor’s stage three plan, Australians earning $150,000 or more will receive less of a tax cut than they would have under the Coalition’s legislated package.

The top tax bracket of 45 per cent will start at $190,000, down from $200,000 under the Coalition’s package, and the 37 per cent tax rate – which was due to be scrapped from July 1 – will be retained for Australians earning between $135,001 and $190,000.

A flat 30 per cent tax rate will apply to incomes of $45,001 and $135,000, while a tax rate of 16 per cent would apply to the earnings of workers on incomes of $18,201 and $45,000.

“We are choosing a better way forward, given the changed circumstances. We are doing the right thing, for the right reasons. With a plan that delivers a tax cut for every taxpayer,” Mr Albanese said.

“More help for middle Australia. More help for families under pressure with their cost of living. And a better deal for 5.8 million working women. Every woman taxpayer will get a tax cut. And 90 per cent will receive a bigger tax cut, under our plan.”