Supermarkets could be broken up under Coalition plan

Opposition Leader Peter Dutton announced the policy on Tuesday, in a move that will put further pressure on the Albanese government amid a cost-of-living crisis.

"Divestiture powers will address serious allegations of land banking, anti-competitive discounting, and unfairly passing costs onto suppliers," Mr Dutton said.

"The time for this policy has come."

Mr Dutton said a supermarket commissioner would be appointed under his leadership.

The powers would only apply to supermarkets and hardware stores and must be proven in court to lead to a substantial improvement in competition.

The policy would address land banking, including instances where one major supermarket buys up land around it to keep competitors out, Mr Dutton said.

Nationals leader David Littleproud said the powers would act as a deterrent for big businesses in those sectors.

"It won't mean that tomorrow or when we get into government that we're going to break up the supermarket straightaway," he said.

"This is a deterrent. It is a deterrent to make sure they work within the regulatory guidelines."

Shadow treasurer Angus Taylor said the divestment would also need to pass a public interest test.

"There's been criticism around that this could result in loss of jobs or significant loss of shareholder value," he said.

"The public interest test ensures that that is not possible."

The Greens have been pushing for divestiture powers for supermarkets, similar to those in the US and the UK.

In June, the Albanese government introduced changes to the Food and Grocery Code aimed at cracking down on price gouging by Coles, Woolworths, Aldi and Metcash, which owns IGA.

Under the changes, supermarkets that seriously breach the mandatory code of conduct will face maximum penalties of the largest of $10 million, three times the benefit gained or 10 per cent of 12 months' turnover.

The federal government also committed to an anonymous complaints mechanism within the ACCC to allow suppliers to raise concerns.

Mr Dutton said a Coalition government would go further by introducing a supermarket commissioner to act as an impartial avenue for farmers and suppliers and refer complaints to the Australian Competition and Consumer Commission.

The commissioner would help support suppliers who fear retribution from supermarkets after speaking out, the Coalition says.