Supermarkets could soon be forced to disclose their intention to buy real estate, in a bid to block land-hoarding and make the sector more competitive and price-friendly for customers.

Announcing a $30 million boost for the consumer watchdog to investigate unfair practices on Tuesday, Treasurer Jim Chalmers said the government would work with states and territories to prevent grocery chains land-banking.

The move follows concerns supermarkets are buying retail blocks with no intention of developing them, to prevent competitors snapping up the location.

Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said it was voluntary for supermarkets to inform the watchdog if they acquired land, and backed calls for it to become mandatory.

“We can test the competitive significance of the land acquisitions that are being undertaken,” she said.

‘We do not get notified when there is an acquisition of land for a supermarket or of a shopping centre that contains a supermarket. We’re not assured of that.”

An interim report by the watchdog said it had received concerns about alleged land-banking practices, which were increasing barriers for other companies to enter the market.

Woolworths had interests in 110 sites for future use and Coles intended to use 42 sites, the report said, while Aldi had 13 undeveloped locations.

The watchdog was aware of the need for competition in the supermarket sector, Cass-Gottlieb said.

“We are very conscious in our competition assessments to look at what are the features of the local areas in which the competition is taking place and where competition may be changed and lost,” she said.

“This is such a critical time for consumers with cost-of-living pressures when it is important to be able to rely on pricing and the functions and qualities of products.”

A crackdown on land banking would lead to cheaper groceries at the checkout and allow for smaller players in the sector to expand, Chalmers said.

“This is all about … more sites for potential competitors to the big supermarkets, we want to make sure people are getting a fair go at the checkout,” he said.

“I’ll also work closely with states and territories to progress reform of planning and zoning regulations as fast as possible so we can boost competition in the supermarket sector by opening up more sites for new stores.”

The $30 million boost will aid the commission in monitoring behaviour and investigating concerns about falsely justifying higher prices.

Customers needed to be able to get the best value when they shop, Prime Minister Anthony Albanese said.

“We want supermarkets to do the right thing, now if they don’t do the right thing voluntarily, we’ll mandate to make sure they do the right thing,” he said in Melbourne.

The extra funding for the consumer watchdog comes a week after it said it would take Coles and Woolworths to court over alleged misleading specials.

The commission claims the major supermarkets made millions in revenue by jacking up prices for dozens of goods only to lower them slightly – but above their original price – and then designate them as “specials”. The big retailers have been accused of fuelling inflation with the contentious tactics.

Coles and Woolworths make up 67 per cent of the supermarket sector in Australia.

Albanese said supermarkets had been put on notice for their “dodgy practices”.

“We don’t want to see ordinary Australians, families and pensioners being taken for a ride by the supermarkets, and we’re taking steps to make sure they get a fair go at the checkout,” he said.

Last week, the government released for consultation a mandatory Food and Grocery Code, which would impose multimillion-dollar penalties on companies for serious breaches.

The code, which was previously voluntary, had governed the relationship between supermarkets and suppliers.

Tuesday’s announcement also follows the release of research that shows that Australian shoppers are paying more at the checkout than many families in Britain, Ireland and New Zealand.

-with AAP