Grocery subsidy to expand to more remote stores, with government saying families could save up to 50%

The federal government says more remote First Nations communities will gain access to cheaper groceries and household essentials under an expansion of the Low-Cost Essentials Subsidy Scheme, a program designed to reduce prices in remote stores where everyday items can cost substantially more than in major centres.

In a ministerial media release, the government said the expansion will broaden access by enabling more stores to participate, with the aim of lifting the number of eligible remote outlets across the country. The release states: “The Albanese Government is delivering more cost of living support for remote First Nations communities by expanding access to the Low-Cost Essentials Subsidy Scheme.”

The scheme targets 30 essential products and aims to bring prices closer to urban benchmarks. The ministerial release says: “Under the Scheme, the cost of 30 essential items has been reduced, so they are comparable to prices in urban areas. Remote consumers are seeing savings of up to 50%.” It lists items including canned fruit, tinned vegetables, rice and pasta, as well as non-food necessities such as nappies, soap and toilet paper.

The government said 113 remote stores have already signed up, and that the additional $27.4 million investment means an estimated 225 remote stores across Australia can apply to join. The release adds that the expansion is intended to support independently managed stores (which it says make up about half of remote stores) to participate.

Minister for Indigenous Australians Senator Malarndirri McCarthy said the intent is direct, household-level relief. “Our investment is about delivering cost of living relief to more remote communities and making sure more families can access cheaper essential items,” she said. McCarthy also pointed to strong take-up since applications opened last July, noting stores across the Northern Territory, Western Australia, South Australia and Queensland have already joined.

Participation will require eligible stores to sign up to a National Code of Practice for Remote Store Operations, which the release says sets minimum standards aimed at strengthening governance, operations and health outcomes. The government has framed the subsidy as part of its broader Closing the Gap commitments, positioning affordable food and essentials as a practical lever to improve health and reduce pressure on families.