Major supermarkets face fines worth billions of dollars for mistreating suppliers under a new mandatory code of conduct to be confirmed by the federal government today.

The new food and grocery code of conduct will apply to supermarkets with annual revenue of $5 billion. They will face fines worth up to $10 million, or 10 per cent of revenue if they are found to be mistreating suppliers.

Under the reforms, there’ll be a new anonymous complaints process so these suppliers can go to the competition watchdog if they don’t think they’re being treated fairly as well as a new independent arbitrator.

These were the main recommendation of a review led by former Labor minister Craig Emerson who handed down his interim report in April.

Treasurer Jim Chalmers told Today this morning shoppers would see cheaper prices as a result of the changes, which the federal government was seeking to put into law as soon as possible.

“This is all about a fair go for farmers and families. It’s about ensuring that the big supermarket chains do the right thing by their supplier and also by their customers.

“And it’s all about making sure that if we have supply chains which are fairer and supermarkets which are more competitive.”

“It’s really all about making sure that the food and grocery code is mandatory, that there are big penalties for people who do the wrong thing, and that there are better avenues for people to make complaints and resolve disputes.”

Chalmers confirmed the government had no plans to break up the major supermarket chains.