Tag: Australia

  • South Australia Closes 100 Stores for Selling Illicit Tobacco, Vapes

    South Australia Closes 100 Stores for Selling Illicit Tobacco, Vapes

    Since June 5, South Australia has issued 100 28-day closure orders to stores selling illicit tobacco and vapes, seizing products valued at approximately A$50 million ($32.5 million), including 41 million cigarettes, 140,000 vapes, and 13,585 kg of loose tobacco. The closures are part of a state-led crackdown, supported by a A$16 million ($10.4 million) illicit tobacco taskforce targeting both metropolitan and regional outlets. Two long-term closures have already been issued, with five more pending in the Magistrates Court.

    The Malinauskas Government emphasized that the crackdown disrupts organized crime networks and enforces penalties of up to A$6.6 million ($4.3 million) for large-scale illicit sales, while landlords knowingly allowing such sales can face fines up to A$50,000 ($32,500).

  • NSW to Punish Landlords Who Enable Illegal Tobacco Sales

    NSW to Punish Landlords Who Enable Illegal Tobacco Sales

    Australia’s Minns Labor Government introduced the Public Health (Tobacco) Amendment (Landlord Offences) Bill 2025, creating a new offence for commercial landlords who knowingly allow tenants to sell illicit tobacco or illegal vapes. “These penalties ensure we target landlords who knowingly permit illegal activity while protecting legitimate businesses and communities,” said health minister Ryan Park.

    Once enacted, landlords who are aware of illicit activities but fail to act or report them could face up to one year in prison, a $165,000 fine, or both.

    The move follows months of enforcement action, with New South Wales Health and Police seizing over 11.8 million cigarettes, 2,000kg of tobacco, and 170,000 illegal vapes valued at nearly A$19 million ($12.4 million) between January and October 2025. Courts have imposed $597,200 ($388,180) in fines across 17 prosecutions, with 27 more cases pending.

    The legislation complements recent reforms introducing multi-million-dollar fines and prison terms for possession and sale of illicit tobacco, closure orders for offending premises, and new powers for lease termination and license fraud offences.

  • Illegal Tobacco Costs Australia Billions, Fuels Crime

    Illegal Tobacco Costs Australia Billions, Fuels Crime

    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.

  • Australia Sees Record Surge in Illegal Tobacco and Vape Seizures

    Australia Sees Record Surge in Illegal Tobacco and Vape Seizures

    Australia’s border authorities have reported a sharp rise in the interception of illegal tobacco and vapes, with the Australian Border Force (ABF) seizing 586 million cigarettes and more than 3 million vapes between July and September, the highest quarterly total in recent years. Officials say the spike reflects both growing criminal activity and enhanced border intelligence.

    ABF Illicit Tobacco and Vape Enforcement Commander Greg Dowse said the results highlight how syndicates are becoming more sophisticated, but “not beyond the reach of border intelligence.” He credited the agency’s success to stronger cooperation with international partners, enabling authorities to identify high-risk shipments before arrival.

    Major seizures were reported nationwide, including two tons of undeclared tobacco in Queensland, over 4 million cigarettes in Western Australia, and 95,000 vapes hidden in a Port Botany shipment. Dowse said continued collaboration and intelligence sharing remain crucial to preventing illicit tobacco and vape products from reaching Australian consumers.

  • Australia Launches National Taskforce to Combat Illicit Tobacco Crisis

    Australia Launches National Taskforce to Combat Illicit Tobacco Crisis

    With Australia’s demand for black-market tobacco surging in recent years, driven by steep tax hikes on legal products, authorities have announced a new multi-agency taskforce set to target the organized criminal networks behind it. The Illicit Tobacco National Disruption Group, led by the Australian Border Force, will unite federal, state and territory police with agencies including AUSTRAC, the Australian Criminal Intelligence Commission, the ATO, and Services Australia.

    Backed by almost A$190 million ($124 million) in new funding aimed at dismantling smuggling and distribution operations, the crackdown will examine every stage of the supply chain, from pre-border smuggling to warehouse storage and local street sales. The taskforce will focus on mid-level criminals who import, distribute, or sell illegal tobacco, while also targeting financial flows that sustain the trade. Home Affairs Minister Tony Burke said the coordinated approach was vital as illicit tobacco networks were increasingly tied to broader organized crime.

    “The same criminal groups are involved in organized tobacco, arson and the drug trade,” Burke told the ABC’s Insiders program. “If there’s a cohesion of threats and a convergence of threats, there needs to be a convergence of protection in responding.”

  • Economist Puts Australia’s Illicit Tobacco Crisis Squarely on Tax Rate

    Economist Puts Australia’s Illicit Tobacco Crisis Squarely on Tax Rate

    Australia’s illicit tobacco market has gone over the “Laffer Curve,” where excessive taxation leads to lower overall revenue, according to numerous experts, including U.S. economist Dr. Arthur Laffer. “It’s not working at all. Your taxes are way too high,” he told 7.30 News. “Australia has raised its tax rates on tobacco so high that people have found illicit products.”

    According to internal industry data, illicit products now account for 64% of all tobacco and 82% of total nicotine consumed in Australia. The black market is valued at nearly $10 billion, coinciding with a sharp drop in federal tobacco excise revenue—from $16 billion in 2020 to $7.4 billion in 2025.

    The federal government, however, has rejected calls to lower tobacco taxes, arguing that high excise rates and plain packaging have been effective in cutting smoking rates to 10.5% in 2024, down from 25% in the 1990s.

    The term “Laffer Curve” was made famous 50 years ago after Laffer drew it on a napkin at a meeting with then Ford Administration officials Dick Cheney and Donald Rumsfeld. Laffer said the concept wasn’t new, dating back to 14th-century writings.  

  • Australia’s Tobacco Policies Spark Harm and Chaos, Industry Expert Says

    Australia’s Tobacco Policies Spark Harm and Chaos, Industry Expert Says

    In a candid keynote at the Global Tobacco and Nicotine Forum (GTNF), Theo Foukkare, CEO of the Australian Association of Convenience Stores, delivered a scathing assessment of Australia’s tobacco and nicotine policies, saying the country is saddled with “harm and chaos.” Speaking under the theme “The Australian Experience: From Global Leader to Global Failure,” Foukkare outlined how once-successful public health strategies had collapsed under the weight of excessive taxation, poor enforcement, and the rise of organized crime.

    “Australia has become the model of what not to do. By any measure, it’s an absolute failure,” he said. “And believe it or not, our government still claims to have world-leading standards. We’re dealing with an absolute tsunami of illegal nicotine products entering the country. I call it ‘Tobacco Wars.’ It’s actually playing out in real life every day. The illegal nicotine market is now bigger than the next five organized crime categories combined.

    “Through bad policy, we’re actually creating harm,” he said, noting that smoking rates have remained virtually unchanged in the past decade despite mounting taxes and restrictions.

    “We had the most aggressive excise policy any government in the world had undertaken,” Foukkare said, with a legal pack of cigarettes now costing between $45 and $50. “They killed the golden goose, because the consumers said, “Enough is enough. Why would I pay this when there are cheaper options?”

    According to Foukkare, Australia’s extreme excise policies pushed consumers to the black market, eroding legal sales and fueling criminal activity. Organized crime groups, he added, have even begun taking over farms to grow illicit tobacco, while state governments scramble to form task forces.

    “There’s so much threat and intimidation,” he said. “Some store owners are paying $5,000 a month in protection money. Pay or they’ll burn your shop down. One store owner got a handwritten note saying he needed to meet with the [crime] boss. He took the note to the police, the next day, a car drove through the front of the store, and now it’s closed.”

    Foukkare criticized the government for ignoring early warnings about policy failures and dismissing data because it was industry-funded. Now, with estimates suggesting up to 60% of tobacco consumption is illicit, officials are finally acknowledging the scale of the problem. Foukkare also condemned the government’s anti-vaping stance, arguing that public messaging has convinced most Australians that vaping is more dangerous than smoking.

    Despite the creation of new penalties—million-dollar fines, landlord accountability clauses, and police powers to shut down stores—Foukkare said the measures have done little to fix the underlying issue. “We’ve spent a billion dollars and haven’t done anything to reduce smoking or keep people safe,” he said.

  • NSW Tobacco Licensing Enforcement Kicks In

    NSW Tobacco Licensing Enforcement Kicks In

    The three-month grace period for Australian retailers and wholesalers in New South Wales to apply for a license to sell tobacco and smoking products ends today (October 2). Enforcement of the Minns Labor Government’s new Tobacco Licensing Scheme begins tomorrow, meaning all businesses selling tobacco or non-tobacco smoking products must hold and display a valid license. Those trading without one risk heavy penalties, although applicants who lodged a valid application before the deadline can continue operating until their outcome is confirmed.

    The new Center for Regulation and Enforcement within NSW Health will oversee compliance, working with state and federal agencies. Under recently passed reforms, penalties for unlicensed sales will increase dramatically, with fines of up to A$660,000 ($435,600) for individuals and A$880,000 ($580,800) for corporations. New offenses also target illicit tobacco trade, carrying maximum penalties of A$1.54 million ($1 million) and/or seven years’ imprisonment.

  • Health Minister: Tobacco Black Market ‘Thriving’ Across Australia

    Health Minister: Tobacco Black Market ‘Thriving’ Across Australia

    Australia’s illicit tobacco trade has spiraled out of control, Health Minister Mark Butler warned, describing it as the country’s biggest threat to public health. He said organized crime has seized control of the multi-billion-dollar market, with violence, arson, and gang turf wars now common, and that the illegal trade also bankrolls other criminal activity, including drug and sex trafficking.

    The surge comes amid a decade of steep cigarette tax increases, which pushed the duty on a pack from A$10.62 in 2015 to A$28 ($7.01 to $18.48) today. While intended to reduce smoking, the policy has backfired according to officials: federal excise revenue has fallen, and the Australian Medical Association warns that smoking rates may be creeping up again. Experts say the black market now dwarfs legitimate sales, leaving policymakers struggling to strike a balance between public health and crime prevention.

    Butler said enforcement, rather than tax policy, is the real challenge, pointing out that criminal gangs can produce cigarettes for a fraction of the legal price, leaving Australia caught between soaring taxes and a thriving underground market. State leaders and opposition politicians are calling for urgent action. NSW Premier Chris Minns described repeated tax hikes as “feeding the illicit tobacco market,” while Shadow Health Minister Anne Ruston accused the federal government of weak leadership.

    “It is his government who has sat on its hands and allowed the black market to thrive due to their inaction and weak leadership,” Ruston said. “It is a clear indictment on the health minister, and his government, that it has taken this long for them to realize the extent of the problem.”

  • NSW’s New Laws Aimed at Curbing Illegal Tobacco Trade

    NSW’s New Laws Aimed at Curbing Illegal Tobacco Trade

    The New South Wales (NSW) Parliament passed sweeping new laws to crack down on the illegal tobacco trade, with offenders now facing some of the harshest penalties in Australia. Under the legislation, those convicted of selling illicit tobacco could face fines of up to A$1.5 million ($1 million), prison sentences of up to seven years, and the closure of their businesses. The measures will work alongside the state’s new tobacco licensing scheme, designed to make it easier to identify and remove rogue operators, and will be enforced by NSW Health’s newly established Centre for Regulation and Enforcement.

    The government said the reforms are aimed at protecting public health and safeguarding legitimate retailers, while disrupting the operations of criminal syndicates profiting from tax evasion, addiction, and youth exposure to tobacco.