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Tag: Australia

  • Australian Party Calls for 80% Tobacco Tax Cut

    Australian Party Calls for 80% Tobacco Tax Cut

    Australia’s federal opposition is calling for tobacco excise to be cut by up to 80% to undermine organized crime networks that it says now control much of the country’s tobacco market. A coalition task force report released today (Aug. 26) said as much as 80% of tobacco consumed in 2025 was illicit, up from 12% in 2017.

    Sen. Richard Colbeck and Monash MP Mary Aldred said high tobacco taxes have helped fuel an underground market linked to firebombings and arson attacks. “Criminals had taken ‘almost complete control of Australia’s tobacco market,’” the report said. Colbeck said the issue is no longer simply about smoking but “who controls a billion-dollar market in our economy: the Australian government or organized crime?”

    The report said tobacco excise revenue fell from about A$16 billion ($11.2 billion) in 2019-20 to A$8 billion ($5.6 billion) in 2024-25 and is projected to fall to A$4 billion ($2.8 billion) in 2025-26 and A$2 billion ($1.4 billion) by 2029-30. One Nation has proposed a 75% cut, while the Nationals and NSW Premier Chris Minns have also backed lower taxes. The Albanese government has opposed reducing the excise.

  • China, Australia Bust $64M Tobacco Syndicate

    China, Australia Bust $64M Tobacco Syndicate

    Australian and Chinese authorities worked to dismantle an international syndicate accused of shipping illegal tobacco into Australia, with more than 60 people arrested in China. The Australian Border Force said the syndicate shipped more than 90 containers of tobacco to Australia between January and May. Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco, with the tobacco valued at more than A$92 million ($64.4 million) based on the taxes allegedly evaded. Chinese authorities said the tobacco was likely manufactured and moved through Southeast Asia before being concealed in legitimate cargo bound for Australia.

    Ninety-one of the 112 containers flagged by Chinese authorities were found to contain illegal tobacco. Shipments left Shanghai concealed among goods including printers and lamps and largely arrived at Sydney port.

    Australia has experienced a sharp increase in illicit tobacco consumption in recent years. The Australian Bureau of Statistics estimates that 80% of tobacco and other nicotine products consumed in the country are now illicit, compared with 12% in 2017.

  • Australia Launches Nationwide Illegal Tobacco Crackdown

    Australia Launches Nationwide Illegal Tobacco Crackdown

    Australian authorities announced the launch of a major operation targeting the distribution of illegal tobacco, with more than 100 service stations raided across New South Wales, Victoria, Queensland, South Australia, Western Australia, and the ACT on Aug. 11. Operation Shorthand involved about 250 federal, state, and territory officers and was based on shared intelligence and agency referrals, according to Assistant Minister for Customs Julian Hill.

    The raids come amid growing concern over Australia’s illicit tobacco market. The Australian Bureau of Statistics estimates illicit tobacco, vapes and loose-leaf tobacco accounted for about 80% of tobacco and nicotine consumption in 2025, compared with 12% in 2017.

    The operation remains ongoing, with authorities saying further outcomes will be announced. Hill said the government was targeting both sellers and suppliers of illegal tobacco and nicotine products, while the Australian Border Force said any decisions to temporarily close businesses suspected of selling illicit products would be made by the relevant state or territory authorities.

  • Australia Tightens Import Controls on Nicotine Pouches

    Australia Tightens Import Controls on Nicotine Pouches

    Australia strengthened regulation of nicotine pouches under new rules that took effect over the weekend, placing the products under the Therapeutic Goods Administration’s therapeutic goods framework. The changes restrict the import of unapproved nicotine pouches, extending Australia’s strict regulatory approach beyond nicotine vaping products to another smoke-free nicotine category.

    The new rules do not prohibit all nicotine pouch use but require products to meet regulatory approval requirements before they can be legally imported or supplied. The move aligns nicotine pouches with Australia’s existing controls on nicotine products and reflects the country’s continued focus on regulating emerging nicotine alternatives through therapeutic product oversight.

  • Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Labor Premier Breaks Ranks on Australia’s Tobacco Tax Policy

    Calls are growing in Australia for the federal government to reconsider tobacco excise policy, with critics arguing high cigarette taxes are fueling the illicit tobacco market. NSW Premier Chris Minns said the “massive” excise, which adds about A$30 ($21) to a 20-pack of cigarettes, has created a price gap that benefits illegal sellers. He said the policy needs to be reviewed while emphasizing his opposition to smoking and tobacco companies.

    Former law enforcement officials and lawmakers also warned that seizures alone are not addressing the scale of the illicit trade. Former Australian Federal Police and Australian Border Force officer Rohan Pike said enforcement efforts are only capturing a small portion of illegal tobacco entering the country, while Liberal MP Mary Aldred said the black market is contributing to organized crime concerns. The federal government has rejected lowering excise and said it remains focused on enforcement and border seizures.

  • Australia’s Tobacco Use Down, Pouches & Black Market Up: Survey

    Australia’s Tobacco Use Down, Pouches & Black Market Up: Survey

    Australia’s latest National Drug Strategy Household Survey shows daily smoking continues to decline, with the number of daily smokers falling by more than half since 2001 to about 1.3 million Australians, while 68.7% of people aged 14 and older report never having smoked. The 2025 survey also found daily e-cigarette use has largely plateaued since 2022, with frequent vaping among 18- to 24-year-olds dropping from 11.3% to 5.8%.

    However, researchers highlighted emerging challenges, including rising illicit tobacco use and nicotine pouches. The survey found one in three smokers now purchase black-market cigarettes — double the proportion reported in 2022 — while use of three or more nicotine products has tripled since 2019, signaling growing concern over poly-nicotine use despite overall declines in smoking.

  • Authorities Seize $7M in Illegal Tobacco, Vapes in Tasmania

    Authorities Seize $7M in Illegal Tobacco, Vapes in Tasmania

    Tasmanian authorities seized nearly A$10 million ($7 million) worth of illicit tobacco and vaping products during the 2025-26 financial year, including 5.43 million cigarettes, 2,535 kilograms of loose tobacco, and nearly 30,000 illegal vapes, following intensified enforcement efforts and closer cooperation between the Department of Health and Tasmania Police. The seizures come as the state implements tougher laws targeting illicit tobacco and vape sales, including higher penalties, new business closure powers, and restrictions on vending machine sales. At the same time, Tasmanian officials are urging Australia’s federal government to reduce tobacco excise taxes, arguing that high cigarette prices are fueling black market growth, reducing excise revenue, and strengthening organized crime despite continued declines in smoking rates.

  • Australia’s ‘Tobacco Wars’ See 10 Businesses Set Ablaze

    Australia’s ‘Tobacco Wars’ See 10 Businesses Set Ablaze

    Melbourne’s ongoing “tobacco wars” escalated today (July 6) after a suspected ram raid and arson attack destroyed a tobacco shop in Abbotsford and damaged about 10 neighboring businesses. Fire Rescue Victoria deployed 80 firefighters and 25 trucks after crews arrived to find the building fully engulfed in flames, bringing the fire under control by 6 a.m. Victoria Police said unknown offenders drove a vehicle into the shop before setting it alight and fleeing. No injuries were reported, but a crime scene has been established, and an investigation is underway, while road and tram closures disrupted traffic in the area.

  • Australian Economist Calls to Eliminate Tobacco Excise

    Australian Economist Calls to Eliminate Tobacco Excise

    Prominent Australian economist and public policy expert Richard Holden called for the temporary elimination of Australia’s tobacco excise, arguing that only a dramatic tax reduction can effectively dismantle the country’s rapidly expanding illicit tobacco market. Holden, a professor at the University of New South Wales and columnist for the Australian Financial Review, said reducing excise rates incrementally would be insufficient and that taxes should be cut to zero for as long as necessary to make illegal tobacco sellers uncompetitive. He argued that enforcement efforts alone are unlikely to succeed given the scale of the illicit market and the limited resources available to police agencies, and that undercutting the illicit process was the best way to eliminate it.

    Holden’s comments come as new data from the Australian Bureau of Statistics estimated that about 80% of nicotine products consumed in Australia in 2025 were sourced from the illegal market, up from 12% in 2017. He noted that the tobacco excise on a single cigarette has risen from 26 cents ($0.18) to approximately A$1.53 ($1.09), adding more than A$30 ($21.30) in tax to a pack of 20 cigarettes. The proposal goes beyond recent calls by Australian politician Pauline Hanson to halve tobacco excise and freeze indexation, highlighting growing debate over whether Australia’s high-tax tobacco policy is contributing to the expansion of a black market estimated to be worth billions of dollars annually.

  • NSW Premier Backs Review of Tobacco Excise Tax

    NSW Premier Backs Review of Tobacco Excise Tax

    New South Wales Premier Chris Minns called for a rethink of Australia’s tobacco excise policy, arguing that repeated tax increases are fueling the growth of the illicit tobacco market. Minns said the excise was “actually creating a black market for cigarettes,” making illegal products cheaper and more accessible than intended under tobacco control measures.

    His comments align with those of politician Pauline Hanson, who this week urged the federal government to cut tobacco excise rates to undermine criminal groups profiting from illicit cigarette sales. Hanson argued that continued excise increases are creating incentives for organized crime and called for stronger customs enforcement.

    The debate follows new data from the Australian Bureau of Statistics estimating that nicotine consumption rose nearly 40% between 2017 and 2025, driven largely by growth in illicit cigarettes, e-cigarettes, and other nicotine products. The report estimated illicit products accounted for 80% of nicotine consumption in 2025, up from 12% in 2017.

    The issue has become increasingly prominent as Australia faces an ongoing illicit tobacco-related crime wave. More than 125 firebombings in Victoria have been linked to disputes over the illegal tobacco trade. Meanwhile, federal budget projections show tobacco excise revenue falling from A$7.8 billion ($5.5 billion) in 2024-25 to A$4.1 billion ($2.9 billion) in 2025-26, despite excise rates continuing to rise. Australia’s tobacco excise increased again in March to A$1.53 ($1.09) per cigarette stick, with a further increase scheduled for September.