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Tag: Australia

  • Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns 

    Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns 

    A tobacco tax that’s helped drive Australian cigarette prices to world-leading highs won’t be lowered despite suggestions it has aided a rampant black market. Treasurer Jim Chalmers ruled out changing the tobacco excise Wednesday (June 4), dismissing New South Wales’ (NSW) Premier Chris Minns’ call that lower prices could help curb surging levels of illegal tobacco in the community.

    Federal excise taxes are A$1.40 (91 cents) per cigarette, driving the average cost of a pack of 20 to A$40 ($26). In the last six years, the excise taxes increased from A$16 to A$28 ($10.40 to $18.20) per pack, but the revenue collected by the government has still gone down as smokers turn to a flourishing black market, according to Minns. Tobacco tax revenue peaked at A$16.3 billion ($10.1 billion) in 2020 but has dipped to a projected A$7.4 billion ($4.8 billion) this year.

    Minns said police have better things to do than tobacco enforcement, and the “commonsense option” would be for the federal government to acknowledge the excise was not working. NSW Treasurer Daniel Mookhey insisted he would raise the issue with his federal counterpart despite the flat rejection.

    “We can’t ignore the fact there’s an interaction between the federal exercise and the emergence of illegal tobacco,” Mookhey said.

  • Australia’s Latest Tobacco Regs Looming

    Australia’s Latest Tobacco Regs Looming

    Australian officials sent reminders to retailers that the nation’s harsh new tobacco regulations will be in full effect beginning July 1. The new regulations were announced in October 2024 and gave manufacturers five months to comply. Retailers were then given a three-month transition period to phase out old stock that will end in June.

    The new rules include banning certain flavors and ingredients that mask the taste of tobacco; using words like “smooth” or “gold” that make the product seem safer; having 20 sticks per pack and 10 packs per carton; making each cigarette the same size; and updating health warnings that will be printed on the packaging and products.

    According to the Daily Mail, cigarette prices in Australia are among the highest in the world due chiefly to heavy taxation. A standard 20-pack costs more than A$50 ($32.50), depending on the brand, with 70% of the retail price, A$35 ($22.75), going to the government as excise tax. Despite the tax increases, government revenue from tobacco dropped 39% as the tax hikes created a booming black market, with millions of Australians now buying illegal, counterfeit cigarettes sold in convenience stores. The Australian Tax Office estimates that nearly 20% of cigarettes smoked in the country come from criminal syndicates that evade taxes and sell at deep discounts.

  • Australian Police Seize $14M in Tobacco Smuggling Bust

    Australian Police Seize $14M in Tobacco Smuggling Bust

    South Australian police said two men were arrested as they seized more than 7 million cigarettes, 3.9 tons of loose tobacco, and A$9 million ($5.8 million) in cash, combing for what officials said totaled a A$22 million ($14.1 million) bust.

    On May 6, Eyre Western Police stopped a vehicle containing a large quantity of illicit tobacco products. Further investigation led detectives to search an industrial premises in Adelaide’s northern suburbs, which was allegedly being used as a statewide distribution warehouse supplying retail outlets with illicit tobacco products.

    Detective chief inspector Brett Featherby said the confiscation of products, assets, and cash would result in a “significant disruption to the criminal syndicates operating in South Australia.”

    The bust follows a $1.5m seizure of illegal tobacco and $444,000 in cash in Mid North and Eyre Peninsula raids in April.

  • Australian State Ups Penalties for Illicit Tobacco 

    Australian State Ups Penalties for Illicit Tobacco 

    Australia’s New South Wales government has introduced major reforms that are expected to be phased in by July 1 to combat illicit tobacco sales. They include a new licensing scheme for retailers and significantly increased penalties for offenders. NSW is following the lead of Queensland, which recently enacted similar measures.

    Under NSW’s new laws, businesses will need to obtain a tobacco retailing license or face fines of up to A$220,000 ($140,000) for corporations and A$44,000 ($28,000) for individuals. Retailers with a current Retailer Identification Number (RIN) will receive information on how to apply for a license. 

    Heavier penalties are now in effect for offenses such as selling single cigarettes or in packs of less than 20, tobacco products without health warnings, or using prohibited packaging. Corporations caught committing these offenses face fines of up to A$770,000 ($493,000), while individuals can be fined A$154,000 ($98,600). 

    The new laws have also strengthened penalties for both individuals and corporations caught selling tobacco products to minors. Individuals can be fined up to A$22,000 ($14,000) for their first offense and A$110,000 ($70,400) for subsequent offenses, while corporations face fines of up to A$110,000 for a first offense and A$220,000 for further offenses.

  • Illegal Tobacco Stressing Australian Emergency Responders

    Illegal Tobacco Stressing Australian Emergency Responders

    As illegal tobacco sales continue to increase across Australia, so too are violent crimes as organized syndicates get more brazen in their push for market share. There have been more than 100 fire bombings in Victoria in the last two years, with similar tactics being used in New South Wales and now spreading to Queensland.

    The Australian Medical Association Queensland warns that in addition to the obvious dangers of the fire bombings, the increase in violent attacks on tobacconists is also putting further pressure on overworked emergency departments, including police, fire, paramedics, and hospitals.

    “We are also concerned that a growing black market could see increased violence leading to avoidable emergency department presentations and pressure on our doctors and nurses,” said Nick Yim, president of the medical association.

    Queensland is attempting to battle the illicit market with more regulation, increasing fines tenfold. Individuals selling illegal products can now be fined A$32,260 ($20,646) while corporations can be fined A$161,300 ($103,232). Authorities now also have the option to close offending businesses for up to six months.

    The federal government announced in March it would pump A$157 million ($100 million) into federal health, crime, and tax agencies across two years to strengthen enforcement and target crime gangs.

    “This is a national issue that requires a national response, which is why the Albanese Labor government’s $156.7 million investment to tackle the tobacco black market is so critical,” said Mark Bailey, a spokesman for Shadow Health.

  • Australia: Smoking Costs Increasing Burden on Low-Income Households 

    Australia: Smoking Costs Increasing Burden on Low-Income Households 

    Disadvantaged households have higher rates of smoking, putting pressure on their household budgets, University of Queensland researchers have found. Professor Coral Gartner from UQ’s School of Public Health said reducing smoking among households in lower-income areas was important because of the enormous health and financial toll.

    “The increasing price of tobacco has assisted many households in all income groups to quit smoking,’’ Gartner said. “But for those who haven’t quit, tobacco smoking is a growing source of financial strain.

    Researchers studied household tobacco expenditure by socioeconomic status from 2006 to 2022, a period that included substantial tobacco tax increases (2010-2020). Overall average annual household tobacco expenditure decreased to A$972.70 ($603), reflecting a decrease in the number of people purchasing tobacco because of higher prices. In households that purchased tobacco, however, spending increased by A$1,092.20 to A$4,931.70 ($677 to $3,058).

    For people who continued to smoke, the increased financial burden of tobacco products meant less spending on other items such as health, food, insurance, and education.

    “Australia is a world leader in tobacco taxation and has implemented tax policy in line with levels recommended by the World Health Organization,’’ Gartner said. “However, our findings underscore the need for comprehensive policy approaches to reduce tobacco smoking in Australia through both price and non-price-related measures.”

  • Australia’s New Packaging Warnings Take Effect

    Australia’s New Packaging Warnings Take Effect

    Beginning today (April 1), Australia’s new cigarette packaging laws have gone into effect, including that each individual cigarette has a health warning printed on it. Warning phrases include “causes 16 cancers,” “damages your lungs,” and “poisons in every puff.” Canada is the only other country in the world to have such requirements.

    The new laws that went into effect also introduced 10 new graphic health warnings that will be printed on tobacco packaging as well as 10 new inserts that will be placed inside packaging, providing information on the benefits of quitting smoking.

    Sarah Durkin from the Cancer Council said that the graphic health warnings on tobacco packaging have proven effective in educating Australians about the harms of smoking but that the effectiveness of the warnings has decreased over time. 

    “We also have new scientific information that extends our knowledge of the health effects of tobacco use,” she said. “The new graphic health warnings feature some of these harms of smoking that people may not be aware of, such as diabetes, erectile dysfunction, cervical cancer, DNA damage, and the impact of second-hand smoke on children’s lung capacity.”

  • Queensland Cracks Down on Illicit Trade

    The Queensland government is intensifying efforts to combat the illegal trade of tobacco and vapes, which it claims is being exploited by criminal gangs. Health Minister Tim Nicholls revealed that 350-400 stores, including repeat offenders, are under surveillance, with recent raids seizing millions of illicit cigarettes, tons of loose tobacco, and tens of thousands of illegal vapes. Nicholls emphasized the need for stricter financial penalties, arguing that current fines, capped at $3,200 for individuals and $10,000 for corporations, are insufficient to deter the lucrative trade. Discussions are underway with the attorney-general to introduce harsher penalties.

    Meanwhile, the government faces mounting pressure to release the delayed Mid-Year Fiscal and Economic Review (MYFER). Labor’s Shannon Fentiman criticized the delay, suggesting the government is buying time to address fiscal mismanagement and accusing the LNP of stalling after their October election victory. Nicholls defended the postponement, citing efforts to uncover past Labor overspending and ensure an accurate portrayal of state finances. He dismissed opposition criticism as desperation, maintaining that the government is prioritizing transparency and accountability in its economic reporting.

  • Australia’s New Vape Rules Take Effect

    Australia’s New Vape Rules Take Effect

    Image: alexlmx

    Australia’s new vape rules take effect today.

    As of Oct. 1, 2024, people aged 18 years and older can buy vapes from participating pharmacies with a nicotine concentration of 20 mg per milliliter or less without a prescription, where states and territory laws allow, according to the website of the Australian government’s Department of Health and Aged Care.

    Prior to purchasing, consumers must speak with a pharmacist, discussing the product and dosage, along with other options to quit smoking and/or manage nicotine dependence. Consumers must also provide proof of age.

    Pharmacies may sell only one month’s supply to a given customer over the course of one month.

    People under 18 years need a prescription to access vapes, where state and territory laws allow, to ensure they get appropriate medical advice and supervision.

    People who need vapes with a higher concentration of nicotine than 20 mg per milliliter also need a prescription, regardless of their age.

    Flavors are restricted to mint, menthol and tobacco, and vapes must adhere to plain pharmaceutical packaging standards. 

    The law targets commercial and criminal supply of vapes. Individuals, including people under 18 years, who have a small amount of vapes/vaping products for personal use will not be targeted under the law.

  • The View From Down Under

    The View From Down Under

    Sometimes it seems that vaping regulations in Australia are more changeable than the weather.
    (Photos: George Gay)

    Impressions from Australia, one of the world’s most hostile countries for the nicotine business.

    By George Gay

    It is my belief that luggage is evolving at a faster rate than the travelers who use it. At least this was the main observation I made while people-watching at the end of May as I waited to complete the formalities necessary before I could board my flights from Britain to Australia via Singapore. Luggage, seemingly to suit every conceivable travel need, was being carried, dragged, rolled and even ridden by travelers, most of whom it was difficult to imagine fulfilling any need. Frankly, these travelers looked devoid of agency as they moved robotically, heads lowered, slavishly submitting to the instructions being delivered by the cell phones they wrongly believed were acting in their service.

    There was a time when it was said that people came weighed down with baggage of one sort or another, but now, it seems, luggage comes lumbered with human baggage. But for how much longer I wonder? Surely it would be more humane to cut out the middleman and woman and let the luggage, suitably AI enchanced, go traveling on its own, relaying its tourist or business experiences back to its owners safely ensconced at home. Given an AI uplift, luggage could certainly negotiate better than humans the automated bag-drop formalities at London airport and the immigration computers in Sydney. After all, it would be interacting with its own kind in a way that humans no longer do.

    Why do people travel to other countries? Is it, as I have sometimes heard, “to broaden the mind?” Perhaps this was once true, but it is looking increasingly threadbare as a reason or excuse. Nowadays, with high-speed travel the norm, flying is more likely to cause jetlag, damaging the brain and draining the mind of memory, and, in any case, all the information you need to know about far-away places is available to you while sitting at the kitchen table with a computer and a cup of coffee.

    But perhaps, as I have also heard, people travel “to get away from it all?” Well, I’ve got news for the people who think that way. Globalization and modern communications have conspired to make it impossible to get away from it all, except for the weather, if that is what you mean by “it all.” These days, people are incapable of getting away and enjoying new vistas because they are trapped within the horizons set by their phones or limited by their mental baggage.

    Once in Australia, I did try to get away from it all by reading various newspapers, but, after a while, I found myself buying each day the same paper, the Sydney Morning Herald (SMH), whose world view seemed to be aligned with the newspaper I read in the U.K., The Guardian. It was comforting, too, that the letter writers to the SMH seemed to share the same, generally caring attitudes exhibited daily in the pages of The Guardian.

    And soon I realized that not only was I reading a paper with similar views but also that the news itself was little different to what I had thought I had left behind. There were reports of housing shortages, debates about immigration and concerns about energy provision and the climate crisis and about a cost-of-living crisis that meant less money was being donated to charities. Violence against women was in the news as was a lack of care facilities for the elderly, waiting times for medical treatment, a lack of some prescription drugs, increasing cases of whooping cough, a rising need for food banks, infrastructure cost overruns and bird flu. I had left a relatively rich country where child poverty levels were scandalously high and arrived in another relatively rich country to be greeted by an advertisement for The Smith Family’s Winter Appeal in which it was stated that one in six Australian children lived with poverty.

    But it wasn’t all the same. I couldn’t help noticing, for instance, that whereas magpies in the U.K. mostly issue harsh, scolding cries, in Australia, they are more melodious. Perhaps the incidence of passive smoking among magpies is higher in the U.K., a more crowded country than Australia.

    At Singapore airport (left) there are comfortable smoking areas in the terminal, but, at Sydney, smokers and vapers are out in the cold and dark.

    Confused and Conflicted

    Australia and the U.K. have different approaches to tobacco smoking and trying to ensure the safety and health of their citizens more generally, but both approaches, in my opinion, are often confused and conflicted. Australia seems to be trying to take a comprehensive view when warning of the dangers of certain activities, so, for instance, televised public health announcements call on Australians to beat cravings, one at a time. But such announcements, like the adverts they mimic, work only if they create a craving—In this case, a craving to live a healthier lifestyle. Not all cravings are bad—some are essential for life.

    And even if the people responsible for public health announcements don’t feel they are conflicted, some of those hearing the messages might well feel that way. Announcements about the use of cameras to make sure that drivers are wearing their seat belts are no doubt well-meaning but might run into opposition from those on the libertarian wing of society. And I would imagine there will be a long debate over the calls being heard for social media health warnings.

    In Australia, with long stretches of little-used country roads, it was common while I was there to see on television public health announcements warning drivers to be careful when approaching train level crossings. But, at the same time, you can see roadside hoardings advertising beer, and it cannot but cross one’s mind that perhaps if the hoardings were taken down, there would be less need for the railway crossing safety warnings.

    Beer advertisements appear on television during the breaks in broadcasts of football games, where presenters sometimes seem blokeish to the point of caricature. But on the other hand, alcohol in Australia is not sold alongside food in supermarkets as it is in the U.K., and I guess you could argue until the cows came home what it is that normalizes drinking in the minds of the young—its connection with sport and blokeishness or its connection with supermarkets and the everyday.

    Gambling advertisements on television seem to come with their own warnings. At least one advertisement I saw ended with a written suggestion that those watching should imagine what other things money destined for gambling could be spent on. But are such warnings effective? An SMH piece by Charles Livingstone, a gambling researcher and associate professor at Monash University, seemed to suggest not and to show up the conflict of interests that abound when habits are risky to those who partake of them but profitable to those who make them available.

    “But whatever happens, the cozy relationship between gambling, sport, government and broadcasting is as solid and entrenched as it could be,” he wrote. “The damage to the community, especially young people, and to the integrity of sport appears to matter little when everyone’s pockets are full.” Everybody’s pockets but those of most of the gamblers, I presume.

    Do people understand the risks they are taking, active and passive?

    Relative Risks

    One of the visits I made in Australia was to a long-standing friend who many years ago concluded that people were evolving in the direction of becoming more stupid and who seems not to have changed his mind. Is he right, I wonder? In Queensland one day, sitting at a delightful pavement cafe just across from a beautiful beach, the driver of a large utility vehicle parked in front of the cafe, started the vehicle’s engine and then got out of the cab and proceeded to perform a few tasks, including tying down his load. Predictably, the wind off the sea wafted the diesel fumes over the diners, but nobody seemed to mind, and I wondered what level of fuss those people would have made if somebody had started to smoke or vape. Are people stupid? Some certainly don’t seem to understand risk.

    Well, certainly relative risk. But then, can you blame them? A public health broadcast on television showed a youngish man from the 1970s smoking and coughing up blood, followed by a contemporary image of a youngish man vaping and coughing up blood. The message was clear. There was no difference between smoking and vaping. The risks were the same. Are people stupid? Perhaps the question should be: Are they being encouraged to be stupid?

    Australia seems to have had and to have a strange relationship with tobacco and nicotine. The country can claim to be the birthplace of graphic warnings on tobacco products, and I saw very few people smoking or vaping while there, but tobacconists, sometimes sophisticated-looking businesses selling “smokes and vapes,” were highly visible on high streets and in malls, so I guess there is a reasonable demand for their products. These tobacconists seemed not to be overrun with customers when I looked in, however, partly, I take it, because of the significant illegal trade in tobacco and nicotine products, which was the subject of at least one television news report while I was in the country.

    One tobacconist I came across was called a Tobacco Station, and, as I understand it, after I left Australia—and with a nod to the Australian poet and journalist Banjo Paterson, perhaps—there has been movement at the station. From July 1, all nicotine vapes in Australia have been regulated as therapeutic goods, so smokers wanting to buy vapes have had to do so from pharmacies. But, from Oct. 1, those over 18 will no longer have to comply with the government’s much-criticized requirement and find a doctor willing to give them a prescription for vapes—at least those up to a maximum nicotine content of 20 mg per mL. I am sure there will be much debate about how wise such moves are—how smokers and vapers will react.

    Is there a lesson here? Has the nicotine industry helped to bring about this move? Given that it always emphasizes the uniquely therapeutic roll of vaping as providing a safer substitute for smoking, the sale of vapes in pharmacies only has a certain logic. As I have said before, it is long overdue that the industry jettisons this baggage and accepts publicly that vaping is a habit separate from, but similar to, smoking (and drinking)—one that will attract some people who have never smoked. It is a consumer product not a medicine.

    George Gay is Tobacco Reporter’s European editor, but his territory spans the globe. Based in London, George has covered the tobacco industry since 1982, initially for a U.K.-based publication and since 2004 for Tobacco Reporter. George’s understanding of industry issues, combined with his keen sense of observation and dry wit, have earned him a loyal following among Tobacco Reporter’s readers.