What Businesses Can Do Amid the Push for Government Price Controls 🕵

In Australia’s 2025 federal election, pricing has done something unusual—it’s jumped from the spreadsheet to the national stage. What used to be a quiet concern for pricing teams, finance departments, and procurement managers is now front and centre in election campaigns. From supermarket shelves to social media threads, pricing is no longer just about margins or market share. It’s about trust, fairness, public accountability—and the growing debate over government price controls. This shift signals a major change in how pricing needs to be approached.

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Why Government Price Controls Are Hitting the Checkout

It started with frustration. Grocery bills have gone up. Rent is tight. Energy costs sting. And in households across the country, people want someone to blame.

Enter the politicians.

Prime Minister Anthony Albanese pledged to crack down on supermarket “price gouging,” proposing new laws and a dedicated ACCC taskforce to enforce them. His goal? To hold big retailers accountable for what people are calling unfair markups. The opposition responded quickly. Peter Dutton offered a tougher stance—granting the government divestiture powers to forcibly break up supermarkets that abuse their market power.

Both parties are tapping into something real: the public feels squeezed, and they’re demanding answers. Pricing has become political because it affects everyone, every day. But while supermarkets are the immediate target, this moment has implications far beyond the grocery aisle.

Coles, Woolies, and the Case for Government Price Regulation

The ACCC’s year-long inquiry into supermarket pricing didn’t find hard evidence of illegal price gouging—but that doesn’t mean all is well.

Their final report revealed that Coles and Woolworths are among the most profitable supermarket chains in the world. Over the past five years, product margins have quietly crept up—even as Australians tighten their belts. And behind the scenes, suppliers say they’re feeling the pressure too. Especially in fresh produce, many face a classic “monopsony” problem: there are too few buyers, giving big supermarkets the upper hand.

The report recommended over 20 reforms, calling for clearer unit pricing, stronger buyer codes, and more support for alternative grocery retailers. But beyond the policy suggestions, the message is clear: the era of quiet pricing power is ending.

Price Interventions Can Spread to Other Industries

If you run a business outside of retail, you might think government price controls don’t concern you. But think again.

What’s happening to Coles and Woolies could soon happen to energy providers, pharmaceutical companies, telcos, and even digital platforms. Any industry where pricing feels opaque, or where competition is perceived to be weak, is now vulnerable to public and political pressure.

The narrative has shifted. It’s not just about what you charge—it’s about why. And if you can’t explain that in a way that feels fair, people may not wait for regulators to act. They’ll vote with their wallets—or worse, demand government intervention.

The Cost of Getting It Wrong

Let’s take a hypothetical example.

Imagine a mid-sized energy retailer in Queensland. Their costs have gone up—network charges, wholesale prices, compliance fees. To stay afloat, they raise prices. But they do it quietly, with little explanation. Customers start complaining. A few news articles frame it as profiteering. A local MP seizes the issue and demands an investigation.

Sound far-fetched? It’s not. In an election cycle where pricing is a hot-button issue, this kind of backlash can spread fast. And it’s not just about fines or inquiries. It’s about reputation, loyalty, and long-term value.

Common Mistakes Businesses Make with Pricing

Many businesses treat pricing as a math problem. Set a target margin. Mark up the product. Job done.

But amidst increasing clamor for government price controls, that approach falls short. Here are a few common missteps:

Lack of transparency: If customers can’t tell what they’re paying for, or how the price is set, they’ll assume the worst.

Poor communication: Sudden changes, no explanations, and reactive messaging create distrust.

Overreliance on competitors: “Everyone else is doing it” doesn’t hold up under scrutiny. Just because the market tolerates a price doesn’t mean the public will.

Ignoring perception: The value of your offering isn’t just what’s on the invoice—it’s how people feel about what they paid.

Smart Business Moves in a Climate Pushing for Government Price Controls

So how can businesses respond? The companies thriving in this new environment are rethinking not just how they price, but how they communicate and justify those prices.

Here’s how:

Be transparent, not defensive: Break down pricing in simple terms. If your costs are up, explain why. People appreciate honesty—even if they don’t like the number.

Think beyond margins: A short-term bump in profit might cost you long-term goodwill. Ask: what will this price move say about us?

Involve your audience: Use feedback to shape offerings. Highlight affordability efforts, bundle smartly, and show you’re trying.

Build pricing into your brand story: Your prices should reflect your values. Whether that’s sustainability, quality, or accessibility—let your pricing prove it.

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Adapting to a Market Shaped by Government Price Controls

Pricing used to be a backroom decision. Now it’s on the campaign trail, in the news, and at the heart of everyday conversations.

The 2025 federal election shows us just how emotional—and political—pricing has become. It’s no longer just about economics. It’s about values, fairness, and visibility. With growing public pressure for government price controls, the spotlight on business pricing has never been brighter. Businesses that cling to old pricing mindsets will struggle to adapt. But those who embrace transparency, engage with stakeholders, and make pricing part of their customer promise?

They’ll earn not just profits—but trust.

So, if pricing now shapes headlines—and trust—what does that mean for your business? It’s a good time to pause, reflect, and ask whether your pricing still matches what your customers value. Whether you want to sense-check your strategy, respond to rising costs, or build more trust into your pricing, we’re here to help. Let’s chat about where pricing meets politics in your world—and how to make sure you’re on the front foot.

For a comprehensive view of integrating a high-performing pricing team in your company, Download a complimentary whitepaper on How to Improve Your Pricing Team Performance.

Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

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