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ACIC Reports $4 Billion Illicit Tobacco Hit, $3.3 Billion in Lost Excise

New intelligence points to syndicate-driven growth, prompting scrutiny of pricing policy.

Overview

  • Twin ACIC and AIC reports released Thursday say the 2023–24 illicit tobacco burden has quadrupled since 2020–21, making it the second-largest illicit commodity market after drugs.
  • The Australian Taxation Office estimates illegal product now accounts for about one in five tobacco sales nationwide.
  • ACIC links organised crime groups to more than 200 firebombings and at least three homicides since 2023, alongside widespread extortion and intimidation.
  • Federal agencies have seized more than 10 million illicit vaping products since 2024 restrictions took effect, indicating a rapidly expanding black market.
  • The findings feed a policy clash, with NSW Premier Chris Minns calling for an excise review as Treasurer Jim Chalmers rejects lowering cigarette prices.