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Tag: Australia

  • Australia: Legal Cigarettes Plunge, Black Market Thrives

    Australia: Legal Cigarettes Plunge, Black Market Thrives

    Legal cigarette sales in Australia have dropped 22% in the past year, according to data published yesterday (September 3) from the Australian Bureau of Statistics; however, industry experts point out that not having the overall smoking rate mirror that number exposes the growing dominance of the black market and the challenges it poses for enforcement and government revenues. The Treasury expects tobacco excise collections to fall to A$7.1 billion ($4.6 billion) this year, down 57% from the 2019–20 peak of A$16.3 billion ($10.6 billion), despite years of sharp tax hikes.

    Excise increases of more than 280% since 2013 have lifted the price of a 25-pack to around A$50 ($32.50), driving many smokers toward illicit alternatives costing less than half as much. The Australian Border Force estimates organized crime controls 75% of the trade, smuggling in the equivalent of A$3 billion ($2 billion) in untaxed tobacco last year alone. More than 120 Victorian outlets have been fire-bombed since 2023 in gang turf wars.

    While smoking rates have nearly halved since 2010, health groups warn progress has slowed, even as public finances are squeezed.

  • NSW Introduces Harshest-Ever Crackdown on Illicits

    NSW Introduces Harshest-Ever Crackdown on Illicits

    The New South Wales government today (August 6) introduced sweeping new legislation to Parliament aimed at tackling the illegal tobacco and vaping trade, including some of the toughest penalties in Australia. Under the proposed laws, selling tobacco without a license could result in fines of up to A$660,000 ($429,000) for individuals and A$880,000 ($572,000) for corporations.

    Other key measures include:

    • New offenses for commercial possession or sale of illicit tobacco, carrying maximum penalties of over A$1.5 million ($975,000) and seven years’ imprisonment.
    • Closure orders for up to 90 days (short-term) or 12 months (long-term) for premises violating the laws.
    • Offenses for breaching closure orders, including entering or operating from sealed premises.
    • Lease termination powers for landlords and proposed penalties for those knowingly leasing to illegal sellers.
    • New laws against impersonating licensed sellers, resisting product seizure, or attempting to reclaim confiscated goods.

    The crackdown follows the recent rollout of a tobacco licensing scheme, designed to improve regulatory oversight and reduce black market activity.

  • Australia’s Illegal Tobacco Trade Surges to 50%

    Australia’s Illegal Tobacco Trade Surges to 50%

    “Australia’s illegal tobacco problem has made the proverbial transition from tragedy to farce,” wrote Alan Kohler for ABC Radio New Zealand, commenting on a new report that suggests Australia’s crackdown on tobacco through high excise taxes and strict regulations has backfired, with illegal cigarettes now making up half of all the nation’s sales.

    A study published earlier this year by FTI Consulting said 39.4% of cigarettes sold in the country were illicit in 2024, up from 14% six years ago. However, the firm updated its numbers in June and put the new figure at 50%.

    “We can now conclude that the strategy of taxing and banning nicotine addiction out of existence is a complete failure,” Kohler wrote. “The result is that organized crime is making about A$10 billion ($6.5 billion) a year in revenue. Who needs narcotics? With them, you risk lengthy jail time; with smokes and vapes, it’s a fine, but only if you’re very unlucky.”

    The federal government has seen tobacco excise revenue collapse from A$16 billion ($10.4 billion) in 2019 to just A$7.4 billion ($4.8 billion) this year. Experts blame excessive taxation, menthol bans, and the lack of coordinated enforcement. Only 1% of shipping containers are inspected, and selling illegal tobacco often isn’t even a criminal offence.

  • Queensland Seizes 45M Cigarettes, 350K Vapes in Black Market Crackdown

    Queensland Seizes 45M Cigarettes, 350K Vapes in Black Market Crackdown

    Queensland Health (Australia) seized 45 million illegal cigarettes, 350,000 vapes, and over six tons of loose-leaf tobacco since November 2024, as part of a statewide crackdown on the illicit tobacco trade. Authorities say new laws introduced in May have strengthened penalties and enforcement powers, aiming to dismantle the growing illicit tobacco network.

    The surge in black market activity comes despite recent government efforts to tighten enforcement. A 2024 Brisbane Times investigation found widespread illegal sales across Brisbane, with foreign brands like Manchester, Double Happiness, and ESSE openly sold at half the price of legal products.

  • Australian Study Finds Vaping Triples Quit Rate for Smokers

    Australian Study Finds Vaping Triples Quit Rate for Smokers

    A clinical trial by Australia’s National Drug and Alcohol Research Center (NDARC) at the University of New South Wales found that nicotine vapes are significantly more effective than traditional nicotine replacement therapies (NRTs) like gum or lozenges in helping low-income adults quit smoking.

    The study, published in the Annals of Internal Medicine, followed over 1,000 daily smokers receiving government financial assistance. Participants were randomly assigned vaping products or nicotine gum/lozenges for eight weeks, along with motivational text messages.

    At the six-month mark, 28.4% of vape users had successfully quit smoking compared to 9.6% of those using gum or lozenges. However, the study also noted that 58% of quitters were still using vapes after six months, underscoring the need for ongoing cessation support to eventually wean off vaping as well.

    Lead researcher Dr. Ryan Courtney said the study’s real-world design — allowing participants to choose their own vape devices and e-liquid flavors — contributed to the impressive quit rates.

  • Study: Vape and Nicotine Replacements Help People Quit Smoking

    Study: Vape and Nicotine Replacements Help People Quit Smoking

    A new clinical trial led by Flinders University in Australia found that offering a variety of nicotine replacement therapies—including vapes—alongside behavioral support significantly helps people leaving rehab stay smoke-free.

    The study, published in The Lancet Public Health, tracked over 360 adults exiting detox programs. Participants received either 12 weeks of vapes or traditional nicotine therapies like patches and gum, plus Quitline counseling. After nine months, 10% of both groups remained smoke-free, deemed a success for a population with typically high-smoking and low-quit rates.

    Lead author Billie Bonevski said the findings highlight the need to integrate smoking cessation fully into addiction recovery, noting that the type of nicotine aid matters less than consistent support and choice.

  • Australian State Mandating Tobacco Licenses

    Australian State Mandating Tobacco Licenses

    New South Wales, Australia, is implementing a new mandatory tobacco licensing scheme starting July 1, requiring all retailers and wholesalers selling tobacco and non-tobacco smoking products to hold a valid annual license. The annual license will cost A$1,100 ($726), with applications opening July 1. Businesses must apply by October 1 to continue trading while their applications are assessed.

    After October 2, only approved license holders can legally sell smoking products. Penalties for non-compliance include fines of up to A$11,000 ($7,260) for individuals and A$220,000 ($145,200) for corporations.

    Click here for information about the application.

  • South Australia Shuts Down 5 Stores Under New Tobacco Laws

    South Australia Shuts Down 5 Stores Under New Tobacco Laws

    Five CBD stores have been shut down for selling illicit tobacco and vapes under South Australia’s tough new laws. Four stores received 28-day closure orders, and one was closed for 3 days after raids by the Consumer and Business Services task force. Officials had given stores a grace period but warned that there would be zero tolerance once the laws went into effect on June 5.

    The new laws allow for up to 12-month closures and fines ranging from A$700,000 ($455,000) for an individual to A$6.6 million ($4.3 million) for a “large commercial” business. Landlords may also face penalties if they allow illegal sales on their premises.

    Since July 1, authorities have seized A$34 million ($22.1 million) in illegal products during over 500 inspections.

  • Australia’s Pharmacy-Only Vape Law Backfires

    Australia’s Pharmacy-Only Vape Law Backfires

    Australia’s strict pharmacy-only vaping law has collapsed the legal vape market and empowered organized crime, with government data showing legal sales make up just 1 in 1,700 vape transactions, according to The Daily Telegraph.

    Documents obtained by the newspaper reveal that pharmacists report fewer than 6,000 legal vape sales per month, while over 10 million vapes flood the black market monthly—mostly Chinese disposables sold in convenience stores and smoke shops.

    The 2024 law allows nicotine vapes to be sold only in pharmacies, without a prescription but under tight restrictions: limited flavors, plain packaging, and no consumer-friendly branding. However, pharmacies were not consulted before the law passed, and as a result, fewer than 700 of 5,900 pharmacies stock the products.

    Health Minister Mark Butler claimed the legislation would “eliminate the black market,” however, since then, “Butler’s ‘world-leading’ vape restrictions—combined with Australia’s astonishingly high cigarette tax—have wiped out the legal vaping sector, expanded the already-huge black market, led to declining tobacco tax revenues, and encouraged organized crime participation in the vape market,” wrote Jim McDonald for Vaping 360.

    Experts and critics now argue that Australia’s approach has failed, calling for full legalization and consumer market regulation to displace the black market and reduce harm.

  • Australia’s Anti-Smoking Push Fuels Crime, Fails to Curb Smoking 

    Australia’s Anti-Smoking Push Fuels Crime, Fails to Curb Smoking 

    The Coalition of Asia Pacific Tobacco Harm Reduction Advocates (CAPHRA) condemned Australia’s tobacco control strategy as a “public health failure” that prioritizes ideology over evidence, fueling a A$6.3 billion ($4.1 billion)  illicit tobacco market while adult smoking rates remain stagnant. New data reveals one in four cigarettes consumed in Australia originates from the black market — CAPHRA says that is a direct consequence of the world’s highest tobacco taxes and restrictive vaping policies.  

    CAPHRA argues this crisis exposes a fatal flaw in Australia’s approach: prohibition without offering safer alternatives drives consumers to criminal networks rather than reducing harm. 

    “Australia’s tobacco policy doesn’t pass the pub test,” said Nancy Loucas, CAPHRA’s executive coordinator. “Sky-high cigarette prices haven’t made people quit—they’ve made criminals rich.

    “The government’s own figures show smoking rates flatlined at 11% since 2019 despite taxing a pack to A$50 ($32.50). Meanwhile, organized crime syndicates pocket A$2.3 billion ($1.5 billion) annually in evaded excise, funding drug trafficking and violent turf wars.” 

    CAPHRA’s data said Australia’s illicit tobacco trade has surged by 46% since 2020, with over 800,000 smuggled cigarettes intercepted monthly at airports. Criminal syndicates increasingly exploit international travelers, while fire bombings of non-compliant retailers exceed 220 incidents since 2023. 

    “This isn’t just about lost tax revenue—it’s about community safety,” Loucas said. “Melbourne’s ‘tobacco war’ has seen shops torched and innocent bystanders endangered. The government transformed a health issue into a national security crisis by ignoring basic economics: punitive taxes without alternatives breed black markets.”