The Queensland Government has released a consultation paper to industry that proposes opportunities for the government’s planning framework to enhance competition in the supermarket sector.
Consultation is in direct response to the Supermarket Price Inquiry, led by Bundaberg MP Tom Smith, earlier this year.
The following opportunities are proposed to be consulted on to encourage competition in the supermarket sector.
Development of guidance will be consulted on to assist local governments in implementing updated supermarket provisions such as definitions and/or a new ‘competition test’ for certain types of grocery retailers.
Making State policy changes will also be consulted on to make grocery competition a State interest.
Amendments to planning legislation are included in the paper and could include:
- new definitions to acknowledge alternative grocery retailer typologies such as municipal markets, corner stores, neighbourhood supermarkets.
- Establish State-wide capped category of assessment for different scales of grocery retail uses such as prescribing that lower categories of assessment are to be given to grocery retail uses in centre zoned land.
- Establishing a competition test to be used in the development assessment process.
- ‘Use it or lose it’ development approvals whereby the State could legislate a maximum time frame for grocery retail use development approvals before they lapse and/or limit the ability for extensions to these development approvals.
Limit ability to appeal on commercial grounds will also be explored, investigating the provisions outlined in the Planning and Environment Court Rules 2018 to stop vexatious appeals.
The market share within the grocery sector in Australia is largely held by Woolworths and Coles, who have a combined market share of 65 per cent. Woolworths holds a 37 per cent market share, while Coles follows closely behind with a 28 per cent market share.
Aldi holds 10 per cent of the market share and IGA holds 7 per cent market share.
The remaining 18 per cent of the market share is made up of smaller independent retailers.
In Queensland, these retailers include, but are not limited to Foodworks, Harris Farm Markets, Fresh and Save Warehouse, Costco and speciality organic and international stores.
“There is more to do to encourage competition in the grocery sector, to drive down prices at the checkout,” said Premier Steven Miles.
“We’ll seek feedback from industry and from Queenslanders on how we can best leverage our powers to do what matters.”
Feedback is being sought from the supermarket industry, local governments, land use developers and the public on matters relating to the Queensland planning framework and the role it plays in creating healthy competition in the supermarket industry through land use planning and development.
Consultation begins online today and will be open until 12 November 2024.
The Government’s response to the Supermarket Pricing Select Committee report can be found here.