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.
Tag: Tasmania
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Tasmania’s New Bill Aims at Illicit Tobacco, Vapes
Days after retailers called on the government to change tactics that it said were largely ineffective, Tasmania introduced new legislation to crack down on illegal tobacco and vaping products. The Public Health Amendment (Prohibited Tobacco and Other Products) Bill 2026, introduced in Parliament by Health Minister Bridget Archer yesterday (March 24), creates new offences and increases penalties for selling illicit products, grants authorities powers to close non-compliant businesses, bans vending machine sales and public displays of smoking paraphernalia, and strengthens enforcement against sales to minors.
Police Minister Felix Ellis emphasized the need for tough action to prevent organized crime linked to illegal tobacco, while calling for a coordinated national approach to complement Tasmania’s measures.
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Tasmanian Retailers Demand Tobacco Tax Overhaul
Tasmania’s independent retailers are calling on the Australian government to overhaul its tobacco excise strategy, warning that the black market has spiraled “beyond control.” Tasmania Independent Retailers (TIR), representing 80 IGA and IGA-branded stores, said illicit cigarettes are being sold for as little as A$10 per pack ($7), compared with A$40–50 ($28–35) for legal products, fueling organized crime and undercutting legitimate retailers.
TIR chair Michael Baxter criticized the government for persisting with high excise rates and heavy enforcement spending while failing to curb illegal sales, citing unregulated menthol products and weak age checks as risks to youth. Federal excise revenue has dropped from over A$16 billion ($11.2 billion) in 2019 to about A$7.4 billion ($5.2 billion) currently, and 2025 research by FTI Consulting estimates that illicit tobacco now accounts for roughly half of all cigarettes consumed in Australia. Baxter called for recalibrated excise settings and more targeted enforcement, labeling current policy “a disaster” that has left the government effectively losing control of the market.