Australia’s tobacco wars have become a national organised crime crisis.
Federal Member for Hinkler David Batt MP said the Coalition has today launched a major law and order policy to crush the organised crime gangs that are making billions from illegal cigarettes and vapes.
Mr Batt says the centre of the Coalition’s plan will be an 80 per cent cut to tobacco excise, and the legalisation, regulation, and taxation of vapes and nicotine pouches for adults, backed by a $200 million nationwide law enforcement surge to shut illegal shops, intercept illegal tobacco, and dismantle the criminal networks behind the trade.
The Coalition will attack the source of the problem by taking away the extraordinary profits that organised crime are making by selling illegal tobacco and vapes.
Mr Batt said this is a national law and order crisis that needs to be confronted head-on. “Organised crime is waging a campaign of economic terrorism across Australia, including here in Hinkler,” Mr Batt said.
“Gangs are profiting from illegal tobacco and vapes, while expanding their criminal empires into drug trafficking, scams and money laundering. A legal packet of cigarettes costs around $50, with more than $30 of that coming from tobacco excise, while illegal packets can sell for under $20.
Local retailers who are doing the right thing, tell me that they’re losing up to two thirds of potential sales due to the black market.”
Our strong plan will attack the gangs where it hurts by taking away their massive price advantage, taking away their customers, and taking away their profits.
Tobacco consumption has gone up around 30 per cent since the end of 2021 while taxes have kept rising, clearly showing that the Government’s current approach has failed. Australians are getting the worst of all worlds: tobacco consumption is up, criminals are controlling most of the market, and taxpayers are losing billions in revenue. Labor has allowed a criminal industry to thrive on our streets. We will take back control. We will shut it down.”
The Government estimates organised crime groups are making between $4.1 billion and $6.9 billion in profit from illicit tobacco, money that is simply ploughed back into trafficking, scams and money laundering.
Under the Coalition’s plan:
- Tobacco excise will be cut by 80 per cent, slashing the excise on a standard packet of 20 cigarettes from around $30 to around $6, dramatically reducing the price advantage enjoyed by the black market. The rate will be reviewed after two years with a view to ensuring the illegal market cannot rebuild.
- A $200 million nationwide law enforcement surge will back more raids, arrests, seizures, and investigations to shut illegal shops, intercept illegal tobacco at the border and dismantle the criminal networks behind the trade. Border Force, the AFP, the Australian Criminal Intelligence Commission and AUSTRAC will be given stronger marching orders to target the gangs, their supply chains and their money.
- Vapes and nicotine pouches will be legalised, regulated, and taxed for adults, replacing Labor’s failed pharmacy-only vape model and total ban on nicotine pouches with a regulated legal market while maintaining strong protections for children. Vapes will attract a low rate of excise of 50c per mL of e-liquid, while nicotine pouches will attract equivalent excise of 2.5 cents per milligram of nicotine.
- A $60 million, three-year national public awareness and education campaign will expose the organised crime behind illegal tobacco and vapes and warn Australians where the money from illegal products ends up and the dangers of smoking.