Australia's largest home improvement retailer will require customers to hold a paid membership for all in-store transactions above $50, ending more than three decades of free public access under a landmark restructuring of its retail model.
Bunnings Warehouse, the Wesfarmers-owned hardware giant that has become synonymous with the Australian weekend ritual, will from 1 July 2026 require all customers making in-store purchases exceeding $50 to hold an active 'PowerPass' membership, the company confirmed in a statement released Tuesday evening. The annual fee of $79 will grant unlimited in-store access, exclusive pricing on a curated catalogue of 3,400 products, and priority service at trade desks.
The announcement, which caught both industry analysts and loyal customers off guard, represents the most significant operational change in Bunnings' 130-year history. The company cited rising operational costs, supply chain pressures, and the need to fund a $2.1 billion store modernisation program as the primary drivers behind the decision.
"This is about investing in a better experience for the Australians who rely on Bunnings most. PowerPass members will receive faster service, guaranteed stock availability on key lines, and pricing advantages that will more than offset the annual fee for any regular shopper."
— Michael Schneider, Managing Director, Bunnings Warehouse
The $79 annual fee places Bunnings' new model in direct comparison with Costco's membership structure, though analysts note the scope of Bunnings' customer base — the chain services approximately 14 million customer visits per month — makes the transition far more operationally complex. Wesfarmers' share price rose 3.4 per cent following the announcement, closing at $74.20 on the ASX on Tuesday.
Consumer advocacy groups moved quickly to condemn the announcement. The Australian Consumers Association described the policy as "a regressive tax on home ownership," noting that lower-income households who rely on Bunnings for essential maintenance and repair materials would be disproportionately impacted. The organisation has called on the ACCC to investigate whether the move constitutes anti-competitive behaviour given Bunnings' dominant market position.
"Bunnings controls approximately 47 per cent of the Australian home improvement market. When you hold that kind of market share, introducing a mandatory fee for basic retail access is not a neutral business decision — it's a structural barrier. We'll be writing to the competition regulator this week."
— Sandra Fellowes, Chief Executive, Australian Consumers Association
The reaction on social media was swift and overwhelmingly negative, with the hashtag #BunningsGate trending nationally within hours of the announcement. Former Prime Minister Scott Morrison, no stranger to hardware store photo opportunities, described the decision as "deeply un-Australian," while several state premiers indicated they would seek urgent briefings from consumer affairs ministers.
Wesfarmers defended the decision, noting that 2.3 million Australians already hold active PowerPass trade accounts and will be automatically grandfathered into the new system. The company estimates a further 4.5 million household memberships will be taken up within the first 12 months, generating an estimated $355 million in new recurring revenue annually.
Hardware industry analyst Peter Coulson from Morgans Financial said the membership model, while controversial, had proven resilient in comparable international markets. "Bunnings' UK operation under the Homebase brand attempted a similar model in 2019 with mixed results, but the Australian market is structurally different — there's no real alternative for the majority of consumers," Coulson said. "Whether customers are angry enough to change behaviour is the real question, and history suggests they won't be."
"The sausage sizzle will remain free. That was a non-negotiable for the board. We're not monsters."
— Michael Schneider, Managing Director, Bunnings Warehouse
The federal government has stopped short of intervening, with the Minister for Consumer Affairs, Ged Kearney, saying she would "monitor the situation closely" and would not rule out legislative action if the ACCC identified market-distorting behaviour. The ACCC itself is yet to comment publicly.
Memberships will be available for purchase online from 1 May 2026, with a promotional founding-member rate of $59 available for the first 500,000 applicants. Bunnings confirmed that its iconic $3.50 sausage sizzle, operated by local community groups and charities, would remain free and open to all customers regardless of membership status.