The Illicit Tobacco Market Must Be Wiped Out

During the February Estimates hearings, I pressed the government and the Illicit Tobacco Commissioner on the ineffectiveness of their strategy to combat the illicit tobacco market. Tobacco excise revenue is projected to fall to just $1.9 billion leading into 2029-30, far below the $16 billion-plus previously collected. A clear sign the government does not expect its enforcement efforts to meaningfully reduce the black market. The Commissioner’s own report lists 10 drivers of illicit tobacco yet fails to directly acknowledge that high excise and the resulting price gap are major contributors, despite everyday Australians, including police officers, confirming this reality. Independent data from Roy Morgan shows smoking rates have increased from 16.8% to 17.1% following recent excise hikes, contradicting the government’s claim that higher taxes reduce smoking. Without knowing the true size of the black market, boasting about a 34% increase in seizures of illicit product is meaningless. We cannot measure success when you don’t know the scale of the problem. The government continues to act without reliable data, ignores evidence that contradicts its assumptions, and refuses to confront the policy settings driving the illicit tobacco growth. This is a failure that Australians should not be forced to tolerate. It's costing taxpayers billions in lost revenue. One Nation will take drastic action until the illicit market is wiped out, then return duty to a much lower, more sensible and sustainable rate. — February | Senate Estimates Transcript: https://www.malcolmrobertsqld.com.au/the-illicit-tobacco-market-must-be-wiped-out/