Australia’s drinks industry has welcomed the Albanese Government’s move to strengthen protections against unfair trading practices impacting small businesses.
The government recently announced an extension of safeguards following reports that thousands of small businesses have suffered significant harm when dealing with larger corporations. Given that Australia’s liquor and hospitality sector consists of numerous small businesses, the announcement has been met with widespread approval.
Retail Drinks Australia CEO Michael Waters expressed enthusiasm about collaborating with the government on the reforms, emphasizing the need to ensure new regulations do not impose unnecessary burdens on small businesses.
“We look forward to participating in Treasury’s upcoming review on the design of unfair trading protections for small businesses. Our goal is to ensure any amendments to Australian Consumer Law are clear, practical, and fair,” Waters told The Shout.
While he noted that unfair trading practices do not appear widespread in liquor retailing, Waters stressed the industry’s commitment to maintaining high standards. “We have promoted best practices that go beyond existing consumer laws, including the Online Alcohol Sale and Delivery Code of Conduct.”
The Australian Hotels Association (AHA) also endorsed the initiative, highlighting that it aligns with its longstanding commitment to protecting members from unfair trading.
“A core reason for the AHA’s establishment was to shield members from such practices,” AHA National CEO Stephen Ferguson stated. “Having legislative backing reinforces our ability to uphold fair trading standards.”
Meanwhile, the Independent Brewers Association (IBA) called for a broader review of Australia’s beer market to ensure equitable access for small brewing businesses. CEO Kylie Lethbridge underscored the importance of confidential consultations, given concerns about potential retaliation against small brewers who speak out.
“Our members often fear raising their concerns publicly due to possible repercussions,” Lethbridge said. “With major brewers controlling 83% of the market and dominating on-premise sales, losing retail placements could be devastating for small businesses.”
Australian Grape & Wine (AGW) also backed the reforms, emphasizing the need for tailored protections that address unfair practices affecting grape growers and winemakers in dealings with larger commercial entities.
“This is a crucial step in ensuring that small businesses in our sector can compete fairly,” AGW CEO Lee McLean stated. “We have long advocated for a more level playing field, and this commitment is a step in the right direction.”
McLean stressed that any new framework must consider the wine sector’s unique characteristics. “While we support measures to prevent unfair trading, the final protections must balance fairness, competition, and commercial flexibility.”
The Treasury Department has confirmed plans to conduct consultations this year on the design of the new protections, including whether a principles-based prohibition should apply and which specific unfair trading practices should be targeted to safeguard small businesses.
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