Australia’s illegal tobacco market has cost the government A$3.3 billion ($2.1 billion) in excise revenue, with organized crime controlling much of the trade, the Australian Criminal Intelligence Commission (ACIC) said in a report today (November 6). About one in five cigarettes sold is illicit, as high legal prices push consumers to cheaper alternatives, it said.
The broader impact, including healthcare and productivity losses, totals A$4 billion ($2.6 billion) annually, with at least three deaths and 200 firebombings linked to “tobacco wars.” The ACIC said the A$4 billion estimate was “almost certainly an underestimate,” as it did not include e-cigarettes and illegal vapes.
New South Wales Premier Chris Minns called for a federal review of excise rates, while Treasurer Jim Chalmers rejected lowering prices. Illicit tobacco is part of a growing A$82.3 billion ($53.5 billion) organized crime burden, alongside illegal vapes, according to the report.