Australia’s Labor government has introduced a package of tougher laws aimed at dismantling the illegal tobacco trade, as the Coalition and One Nation press for steep cuts to tobacco excise.
The proposed Combatting Illicit Tobacco Bill would create new offences for large-scale activity linked to organised crime and increase penalties for importing, possessing, buying, selling, producing or manufacturing illicit tobacco.
It would also give prosecutors more scope to establish that tobacco had been imported unlawfully. Suspiciously low prices, missing supply records, concealed products and packaging that breaches Australia’s plain-packaging rules could all be taken into account.
Assistant Minister for Customs Julian Hill said existing offences were designed for an earlier era, when individuals sought to evade a relatively small amount of tax.
“Today, the scale, complexity and sophistication of organised crime demands a new approach to go after the criminals — anyone involved in the illicit tobacco trade,” Mr Hill said.
The legislation would strengthen proceeds-of-crime powers, allowing authorities to pursue assets and profits linked to the trade. It would also classify serious illicit tobacco offences in a way that could enable law enforcement agencies to seek telecommunications interception warrants.
Mr Hill said the measures would make it easier to target not only major importers but also distributors, warehouses, companies and retailers holding illegal cigarettes.
“What really hurts these criminals is to take their cash, their cars, their houses, their boats and their toys,” he told the ABC.
The government says cigarette seizures increased by more than 320 per cent over the past four years, while ministers have committed more than A$365 million to tackling illegal tobacco since early 2024.
Health Minister Mark Butler has rejected calls for a major reduction in excise, arguing that cheaper legal cigarettes could undermine Australia’s long-running efforts to reduce smoking. The Coalition has proposed an 80 per cent cut, while One Nation has backed a 75 per cent reduction.
Mr Butler said the government was open to practical ideas but insisted enforcement remained the central response to organised crime in the tobacco market.
“There is no question we have a very serious challenge on our hands as a country with the scale of the illegal market,” he said earlier this week. “The scale of the illegal market here has exploded over the last three or four years, and that’s a huge law enforcement challenge for us.”
