Australia’s opposition Coalition has unveiled a plan to tackle the country’s illicit tobacco and vape trade by cutting tobacco excise by 80% and committing A$200 million ($140 million) to a nationwide law-enforcement crackdown. The Coalition estimates organized crime groups make A$4.1 billion to A$6.9 billion ($2.9 billion to $4.8 billion) annually from illicit tobacco, with proceeds funding drug trafficking, scams, money laundering, and violence. Opposition Leader Angus Taylor said the plan would attack criminal gangs by narrowing the price gap between legal and illegal cigarettes while strengthening efforts to shut illegal retailers, intercept shipments, and trace criminal finances.
The proposal would cut excise on a standard 20-pack from about A$30 to just over A$6 ($21 to $4.20) and legalize, regulate, and tax vapes and nicotine pouches for adults. The Coalition says illicit tobacco now accounts for about 80% of consumption and 95.7% of e-cigarettes sold are illegal, arguing current restrictions have pushed consumers toward criminal suppliers. It also proposes A$60 million ($42 million) for public education and says Parliamentary Budget Office modelling indicates the package could improve the budget balance by about A$8 billion ($5.6 billion) over four years and more than A$20 billion ($14 billion) over a decade.
