
What Businesses Can Do Amid the Push for Government Price Controls đľ
In Australiaâs 2025 federal election, pricing has done something unusualâitâs 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. Itâs about trust, fairness, public accountabilityâand 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 âprice gouging,â 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 stanceâgranting 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 theyâre 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 ACCCâs year-long inquiry into supermarket pricing didnât find hard evidence of illegal price gougingâbut that doesnât 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 upâeven as Australians tighten their belts. And behind the scenes, suppliers say theyâre 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.
Whatâs 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. Itâs not just about what you chargeâitâs about why. And if you canât explain that in a way that feels fair, people may not wait for regulators to act. Theyâll vote with their walletsâor worse, demand government intervention.
The Cost of Getting It Wrong
Letâs take a hypothetical example.
Imagine a mid-sized energy retailer in Queensland. Their costs have gone upânetwork 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? Itâs not. In an election cycle where pricing is a hot-button issue, this kind of backlash can spread fast. And itâs not just about fines or inquiries. Itâs 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 canât tell what theyâre paying for, or how the price is set, theyâll assume the worst.
Poor communication: Sudden changes, no explanations, and reactive messaging create distrust.
Overreliance on competitors: âEveryone else is doing itâ doesnât hold up under scrutiny. Just because the market tolerates a price doesnât mean the public will.
Ignoring perception: The value of your offering isn’t just whatâs on the invoiceâitâs 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.
Hereâs how:
Be transparent, not defensive: Break down pricing in simple terms. If your costs are up, explain why. People appreciate honestyâeven if they donât 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 youâre trying.
Build pricing into your brand story: Your prices should reflect your values. Whether thatâs sustainability, quality, or accessibilityâlet 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 itâs on the campaign trail, in the news, and at the heart of everyday conversations.
The 2025 federal election shows us just how emotionalâand politicalâpricing has become. Itâs no longer just about economics. Itâs 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?
Theyâll earn not just profitsâbut trust.
So, if pricing now shapes headlinesâand trustâwhat does that mean for your business? Itâs 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, weâre here to help. Letâs chat about where pricing meets politics in your worldâand how to make sure youâre 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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