Fair Trading (Fuel Pricing Information Penalties) Amendment Bill

Fair Trading (Fuel Pricing Information Penalties) Amendment Bill

Introduction and First Reading

The Hon. M.E. BROWN (Florey—Minister for Police, Minister for Correctional Services, Minister for Consumer and Business Affairs) (15:54): Obtained leave and introduced a bill for an act to amend the Fair Trading Act 1987. Read a first time.

Second Reading

The Hon. M.E. BROWN (Florey—Minister for Police, Minister for Correctional Services, Minister for Consumer and Business Affairs) (15:54): I move:

That this bill be now read a second time.

I am pleased to introduce the Fair Trading (Fuel Pricing Information Penalties) Amendment Bill 2026. This bill proposes to amend the Fair Trading Act 1987 to improve the compliance framework. The Fair Trading (Fuel Pricing Information) Regulations 2021, under the Fair Trading Act 1987, were introduced in 2021 to establish the fuel pricing information scheme in South Australia. The scheme, administered by Consumer and Business Services, sets the requirements for fuel retailers to report their prices to a central database as close in time as possible to the price changing at the pump but not more than 30 minutes after that time. Additionally, if a type of fuel becomes unavailable, they must report this to the aggregation system.

Motorists can then access fuel price information for free through one of the existing fuel price apps and websites such as the RAA, Petrol Spy and Fuel Radar, and report any discrepancy to CBS for investigation. Where the prices reported do not align with the price at the petrol station, CBS can then take appropriate actions for a breach of the Fair Trading Act. The scheme has delivered meaningful financial benefits, with annual average savings of approximately $117 per driver and a total statewide saving of around $58 million.

In recent months, there have been substantial challenges for consumers as Australia is currently experiencing significant volatility in petrol prices and growing concerns regarding fuel supply security, driven primarily by global geopolitical conflict. Fuel prices are not controlled by state or commonwealth governments in Australia and consequently fuel retailers are free to set their own prices. Although the Australian commonwealth government maintains that overall national fuel supply remain stable in the short term, the country is still heavily reliant on imports, making it highly exposed to international supply shocks. The recent changes to the market have led to an even more significant rise in public use of fuel tracking tools, making it even more vital at this time to ensure reporting is timely and accurate.

Since its introduction, CBS has monitored compliance of the scheme with over 4,000 inspections undertaken in metropolitan, regional and remote suburbs of South Australia. In this time, the compliance and enforcement approach taken by CBS under the Fair Trading Act has resulted in over 70 expiations issued and more than 450 warning letters. In response to these global geopolitical conflicts, the Malinauskas government recently allocated an additional $1.2  million over the next four years to hire compliance staff. It is anticipated that this funding will result in 100 more inspections per month, or 1,200 per year.

This bill considers an important issue that lies at the core of ensuring responsible and accountable business conduct by fuel retailers: the enforcement of compliance through appropriate penalties. Compliance in a regulatory framework extends beyond legal obligation; it is a measure of integrity, fairness and accountability. The bill will increase penalties for noncompliance with the scheme under the Fair Trading Act. The bill will increase expiations to $5,000 from $550 and the maximum penalty which can be issued by a court to $20,000 from $10,000.

Whilst enhancing the scheme under this bill may not result in a decrease in petrol prices, it will affect consumer decisions. Consumers will benefit from these reforms because fewer instances of incorrect pricing at petrol stations will reduce incidents of consumers feeling misled when they arrive at the petrol station.

Increasing current penalties for breaches under the Fair Trading Act is not intended as a way to punish businesses. Stronger penalties and enforcement powers reinforce the standards of the scheme, particularly in such uncertain times, by providing a meaningful deterrent to breaches. The particularly significant increase to expiations will allow minor offences to be resolved without the time, expense and procedural complexity of court proceedings. CBS can proactively tackle the current issues in relation to fuel pricing with immediate outcomes to address misconduct and the ability to seek further enforcement options where required.

In determining the appropriate compliance and enforcement action to take, CBS will consider a range of factors such as the nature and severity of the offence and previous compliance history. The bill seeks to embed a culture of responsibility across industries by encouraging businesses to prioritise compliance training and accurate reporting. The increased penalties provided to CBS enhance the regulator's ability to encourage compliance and customer protection while remaining fair, proportionate, and in the public interest.

I commend this bill to the house and I seek leave to have the explanation of clauses inserted in Hansard without my reading it.

Leave granted.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Amendment of Fair Trading Act 1987

3—Amendment of section 45F—Scheme may be established by regulation

This clause increases the penalty provisions and expiation fees.

Debate adjourned on motion of Mr Teague.