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Tag: Australia

  • 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.” 

  • 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.