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ACIC, AIC Report $4 Billion Illicit Tobacco Cost, Link Trade to Violent Crime

Authorities respond through a national disruption task force alongside NSW shop shutdowns.

Overview

  • The ACIC estimates $3.3 billion in tobacco excise was avoided in 2023–24, with the total impact reaching $4 billion after healthcare and productivity losses, roughly four times the 2020–21 level.
  • ACIC chief Heather Cook says the illicit market has been tied to more than 200 firebombings and at least three homicides since 2023, alongside widespread intimidation and extortion.
  • Twin ACIC and AIC reports place the economic cost of serious and organised crime at $82.3 billion in 2023–24, up $13.6 billion in a year, with illicit drugs accounting for about $19 billion.
  • The $4 billion tobacco estimate excludes vapes, yet federal agencies have seized more than 10 million illicit vaping products since 2024 as the AIC warns of a rapidly expanding market.
  • The federal government formed a multi‑agency tobacco disruption task force in October, and NSW used new powers this week to close two shops for selling illicit tobacco and vapes.