A new federal government policy statement has declared that planning laws "hinder" new supermarkets and act as an "artificial barrier to entry and expansion".
The statement, released on 18 September, said that planning laws can allow big supermarkets to monopolize space. Most states have policies concentrating retail activities in one location and shopping centre owners have a strong preference to lease space to the largest retailers. This can leave independent supermarkets forced out of game.
Urban Taskforce's chief executive, Aaron Gadiel, said: "There's been strong demand by both retailers and consumers for newly-developed properties in good locations."
"But developers have been stymied by restrictive planning laws protecting existing shopping centres from competition."
Over a year ago, the Australian Competition and Consumer Commission (ACCC) and the Productivity Commission recommended the relaxation of town planning laws to create more competition, with the Productivity Commission saying that small retail tenants face an uphill battle in negotiating with "oligopolistic" shopping centre landlords.
