Tasmania’s independent retailers are calling on the Australian government to overhaul its tobacco excise strategy, warning that the black market has spiraled “beyond control.” Tasmania Independent Retailers (TIR), representing 80 IGA and IGA-branded stores, said illicit cigarettes are being sold for as little as A$10 per pack ($7), compared with A$40–50 ($28–35) for legal products, fueling organized crime and undercutting legitimate retailers.
TIR chair Michael Baxter criticized the government for persisting with high excise rates and heavy enforcement spending while failing to curb illegal sales, citing unregulated menthol products and weak age checks as risks to youth. Federal excise revenue has dropped from over A$16 billion ($11.2 billion) in 2019 to about A$7.4 billion ($5.2 billion) currently, and 2025 research by FTI Consulting estimates that illicit tobacco now accounts for roughly half of all cigarettes consumed in Australia. Baxter called for recalibrated excise settings and more targeted enforcement, labeling current policy “a disaster” that has left the government effectively losing control of the market.