Australians are paying double for essentials—here’s what the government is doing about it

The cost of everyday essentials has been a growing concern for many Australians, but for some, the price gap is far more extreme than most realise.

What seems like a routine grocery run in one part of the country can turn into an overwhelming financial burden elsewhere.

Now, a new government plan aims to address this long-standing issue—but will it be enough to make a real difference?


Prime Minister Anthony Albanese pledged to address the stark price disparities faced by Australians in remote communities.

He vowed to match the cost of essential goods with those in major cities.

During his Closing the Gap statement on 10 February, he detailed plans to lock in city pricing for 30 essential products across 76 remote stores.


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Albanese vows to cut remote grocery costs. Image source: Wikipedia


His commitment followed a report by consumer advocacy group CHOICE.

The report found that First Nations communities in Western Australia and the Northern Territory were often charged more than double for groceries compared to urban areas.

To strengthen supply chains, Mr Albanese also announced an expansion of warehouse capacity.

‘We are also tackling issues of access to affordable food in remote communities,’ he said, as reported.

‘Food insecurity can have serious health impacts, including cardiovascular and kidney disease.’


The list of essential products covered under this initiative includes flour, milk, canned tuna, rice, bread, beef, chicken and eggs.

It also includes some fresh produce, toilet paper, nappies, toothbrushes, toothpaste and menstrual products, according to the national broadcaster.

In November, CHOICE highlighted the staggering cost gap.

It revealed that a set of nine essential grocery items cost $99.38 in four remote First Nations communities across the Great Sandy Desert, the Pilbara, the West Daly region and the Tiwi Islands.

The same items were priced at just $44.70 in major supermarkets such as Woolworths, Coles, Aldi and IGA in capital cities.


Back in 2020, the price of frozen lamb loin chops in Palm Island, a remote Indigenous community in far north Queensland, sparked public outrage.

They were priced at $82.27—almost double the average cost at the time.

Australians living in remote areas often pay more than twice as much for groceries as those in metropolitan regions.

Last week, the Albanese government secured an $842.5 million funding agreement to enhance service delivery for Indigenous communities in the remote Northern Territory.

This record-breaking federal investment, spanning six years, is set to generate approximately 570 jobs, with over 270 designated for First Nations Territorians.


Since taking office, Labor has prioritised advancing Closing the Gap targets.

These targets encompass 17 socio-economic goals aimed at improving health, safety and housing outcomes for Indigenous Australians.

While most targets are set for completion by 2031, only a handful have seen substantial progress, and several have been revised since the initiative was first introduced in 2008.


Watch the video below to learn more.



Key Takeaways
  • The Albanese government pledged to address extreme price disparities in remote communities by matching the cost of essential goods to city prices and expanding warehouse capacity to improve supply chains.
  • A CHOICE report revealed that First Nations communities in WA and the NT often pay more than double for groceries, with a 2020 incident highlighting the issue when lamb chops in Palm Island were priced at $82.27.
  • A government initiative will lock in city pricing for 30 essential products, including staple foods and hygiene items, across 76 remote stores.
  • The government also secured an $842.5 million funding deal to improve service delivery in the NT, creating 570 jobs, as part of ongoing efforts to meet Closing the Gap targets, though progress has been slow.

Have you or someone you know experienced the high cost of living in these areas? Share your thoughts in the comments below.
 

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More Government control is not the answer and smells of a failure to understand cost realities and also ignores the result of the recent Voice referendum. it is nothing but a political move destined to lose him votes. The delivery cost to such remote areas is much, much higher than to a local supermarket. Not many refrigerated trucks are willing to go to such places without proper compensation. In comparison with city deliveries which are regular and rather short in distance costs are far greater. What is the incentive for truckers to undertake those tasks?
This is political pandering again because of the upcoming election.
 
I think that what Albanese has done for the Aboriginal people is good, but there are other sectors that need help too. Stop showing favoritism for one and not the others. Not fair.
I totally agree. Go to small country towns all over WA where they run local co-ops and you can see that the prices are significantly higher due to the freight costs.
Do not indigenous, as well as white families in these areas also deserve some relief.
People in the city are struggling and we pay somewhere between 50 to 75% more.
Our only other option is to drive to a larger country town, petrol is excessive, and groceries are still higher than the city.
Woolworths CEO earns $8million a year, no wonder groceries are so high. How they justify these wages is beyond me.
 
You know what, Albo? I live in Kalgoorlie-Boulder WA, called a city by those who don't know better. Aldi was going to come here, but of course the last mayor refused to build a depot here so they could get stuff in faster. Same with Big W. We're losing stores, both chain and independent, literally every day! This will be another Coolgardie, but where would people go to shop, go to the doctor, etc, because everything in Kal would be closed down!

I've left message on his page over and over, but am never acknowledged. I was involved in Neighborhood Watch a long time ago. Then someone from state/national areas came to visit and of course there were no homeless, etc in sight! The council cleared the area so the officials couldn't see what really happens Here!

I've lived here 15 years. My husband is my Carer, as I'm disabled (I'm on a US disability pension *and* pay for private health cover from my pension}. He will not let me drive alone, though I could if I had to. I do not go out alone. It's just plain not safe, cars have been hijacked in broad daylight on Hannan Street. A few years back someone dragged a 16 year old was dragged out of a car by a person with a machete!
 
UhYou know what, Albo? I live in Kalgoorlie-Boulder WA, called a city by those who don't know better. Aldi was going to come here, but of course the last mayor refused to build a depot here so they could get stuff in faster. Same with Big W. We're losing stores, both chain and independent, literally every day! This will be another Coolgardie, but where would people go to shop, go to the doctor, etc, because everything in Kal would be closed down!

I've left message on his page over and over, but am never acknowledged. I was involved in Neighborhood Watch a long time ago. Then someone from state/national areas came to visit and of course there were no homeless, etc in sight! The council cleared the area so the officials couldn't see what really happens Here!

I've lived here 15 years. My husband is my Carer, as I'm disabled (I'm on a US disability pension *and* pay for private health cover from my pension}. He will not let me drive alone, though I could if I had to. I do not go out alone. It's just plain not safe, cars have been hijacked in broad daylight on Hannan Street. A few years back someone dragged a 16 year old was dragged out of a car by a person with a machete!
Good old Kalgoorlie. It's a bit like the wild west.
I lived there for 5 years, 32 years ago. But wasn't so bad then. Each year we go back on my mother in law's birthday to place flowers on her grave and each year it has gradually gone from bad to worse.
So many shops closed down. So much antisocial behaviour.
It doesn't sound like the council is doing much to help the situation.

It's not the only place though
I also lived in Geraldton for a few years. What should be a beautiful beachside area has also gone to the pack.
Again so much antisocial behaviour. Shops windows boarded up what once we're very nice homes look like the city dump.
Would not go back to either of these places to live.
 
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It isn't only in regional or "outback" mainly indigenous population areas. In one particular town there is only one supermarket and the other closest one is a few hours drive away. The owner decided he had no competition so he could charge what he liked. One small item was $6.25 in Adelaide, $9.00 in the outback town and the price was increased to $12.00 Following a change in ownership I believe some of the prices have dropped to a reasonable price.
 
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We have a "cost of living crisis," but it's artificial. The #duopoly, Woolworths and Coles, run it in order to create $billion quarterly profits.

Yet, when it comes to Christmas and other commercial ventures, Australians are said to be spending $billions! Am I the only person who considers this a massive anomaly?

We don't need Govts feeding the the greed with more money. We need legislation limiting the amount of mark-up grocers can charge. Prices can be lower. Profits don't need to be $billions every quarter.

Grocers are ripping us off. Simple as that.
 
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Reactions: Cheezil
I totally agree. Go to small country towns all over WA where they run local co-ops and you can see that the prices are significantly higher due to the freight costs.
Do not indigenous, as well as white families in these areas also deserve some relief.
People in the city are struggling and we pay somewhere between 50 to 75% more.
Our only other option is to drive to a larger country town, petrol is excessive, and groceries are still higher than the city.
Woolworths CEO earns $8million a year, no wonder groceries are so high. How they justify these wages is beyond me.
Woolworths CEO earns $8million a year, no wonder groceries are so high. How they justify these wages is beyond me.

Those salaries cannot be justified! We consumers are the ones who pay for these greedy individuals.
 
Yes and he is using our taxes to further something that peoplethe referendum clearly did not support.
The Voice was not about helping indigenous people living remotely with groceries, it was about having a voice in Parliament in having a say in everything that affects them. If it was non indigenous people Albanese had announced he was helping would you agree to his plan.
 
We have a "cost of living crisis," but it's artificial. The #duopoly, Woolworths and Coles, run it in order to create $billion quarterly profits.

Yet, when it comes to Christmas and other commercial ventures, Australians are said to be spending $billions! Am I the only person who considers this a massive anomaly?

We don't need Govts feeding the the greed with more money. We need legislation limiting the amount of mark-up grocers can charge. Prices can be lower. Profits don't need to be $billions every quarter.

Grocers are ripping us off. Simple a
Albosleazy dribbles more shit than a paddock full of bulls with severe diarrhoea. Now he's just scamming for votes.
That a useful comment
 
Woolworths CEO earns $8million a year, no wonder groceries are so high. How they justify these wages is beyond me.

Those salaries cannot be justified! We consumers are the ones who pay for these greedy individuals.
The previous CEO earned that with bonuses. The current one a bit less but still way too much.
 
dvanted people in AustraliaI think that what Albanese has done for the Aboriginal people is good, but there are other sectors that need help too. Stop showing favoritism for one and not the others. Not fair.
For 200 years aboriginal people were not helped, in fact they were being punished for who they were. Indigenous Australians are the most disadvantaged in Australia.
 
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More Government control is not the answer and smells of a failure to understand cost realities and also ignores the result of the recent Voice referendum. it is nothing but a political move destined to lose him votes. The delivery cost to such remote areas is much, much higher than to a local supermarket. Not many refrigerated trucks are willing to go to such places without proper compensation. In comparison with city deliveries which are regular and rather short in distance costs are far greater. What is the incentive for truckers to undertake those tasks?
This is political pandering again because of the upcoming election.
Pandering to what?
 

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