Dodgy darts might be twice as prevalent in Australia than legal ones, as excessive excise rates fuel the black market for smuggled cigarettes, the nation’s illicit tobacco watchdog has revealed.
The latest estimates put the market share for illegal tobacco sales between 25 per cent and 65 per cent, illicit tobacco and e-cigarette commissioner Amber Shuhyta told a Senate estimates hearing on Tuesday night.
Rising tobacco taxes have driven the average price of a pack of over-the-counter cigarettes towards $50 and incentivised criminal gangs to set up shop.
Now who could have predicted that would happen?
In stark contrast, a pack of black market cigarettes bypassing legal import channels can be easily found for about AU$15 (NZ$17.17).
Not just tobacco either. Despite what you’ve been brought up to believe, the fact is illegal drugs are cheaper then legal drugs such as alcohol.
The result is a steep decline in taxation revenue and sales for legitimate retailers.
Foot. Gun. Shot.
Organised crime groups’ efforts to control the illicit tobacco and vape market have led to murders, extortion and hundreds of fire bombings across the country.
[…] In the past five years, Australia’s tobacco tax take has dropped from a peak of 0.8 per cent of national income to below 0.3 per cent, blowing a $69 billion (NZ$79 billion) black hole in the federal budget.
[…] Treasurer Jim Chalmers has consistently dismissed calls to lower the tax excise, instead boosting compliance resources by more than AU$340 million (NZ$389.2 million) in the past two budgets.
And why would he when it would be an admission he was wrong? Nope, much better to double down and try and make it look you’re doing something and standing tough against the gangs.
Enforcement agents had seized more than 2.5 billion individual cigarettes at the border during the last financial year, Australian Border Force Commissioner Gavan Reynolds said.
[…] The amount of loose tobacco leaf intercepted at the border increased 38 per cent, amounting to 439 tonnes, which was equivalent to $4.4 billion (NZ$5 billion) worth of tobacco duties that would have been evaded.
“But of course, it’s not just on the border,” Commissioner Reynolds said.
“We’re also working with our international partners to disrupt the illicit tobacco trade before it gets to Australia. So it’s pre the border, it’s at the border and post the border, with the newly established national disruption group.”
Sure, whatever. All a mere drop in the ocean.
But One Nation Senator Malcolm Roberts questioned how Border Force was confident its efforts to reduce the amount of illicit tobacco entering the country were effective, without knowing the total reduction in illegal tobacco to pass through the border.
That is a fair question and an impossible one to answer. You can also bet that no research was done nor questions asked as to the likely effects of dramatically increasing tax on tobacco (a form of virtual prohibition). I can only imagine all the other questions the senator wants to ask.
“It’s only through breaking the criminal syndicates that we can reduce the scourge of illicit tobacco,” Commissioner Reynolds responded.
Check out the language being used here: “The scourge of illicit tobacco.” Illicit tobacco is only a scourge because it’s illicit.
Senator Roberts said he knew police officers in Queensland who were themselves buying illicit tobacco because legitimate cigarettes were too expensive.
“Some people would argue that it’s only by cutting excise back to sensible levels that would break that because people now find it’s worth going to the criminals to get their tobacco,” he said.
When even the cops are giving the law the finger you know there’s something seriously wrong.
Imagine a mother and child getting killed in broad daylight as a result of being in the crossfire of two feuding gangs fighting over tobacco. It’s not their fault they were in the wrong place at the wrong time. But if I die from smoking, I’ve got no one to blame to but myself.
The whole thing would be hilarious if it weren’t for the innocent deaths and millions (billions?) of dollars wasted and virtually handed over to criminal gangs.
One giant clusterfuck.
Source: https://www.1news.co.nz/2025/12/03/extent-of-illegal-cigarette-sales-in-australia-revealed/
