Overview
- On Wednesday the Opposition unveiled a policy to slash the tobacco excise by 80%, legalise and tax vapes and nicotine pouches, and subject the cut to a two‑year review.
- The package includes a $60 million public awareness campaign and a $200 million nationwide law‑enforcement surge to target illegal tobacco sellers and organised crime networks.
- The Parliamentary Budget Office modelled the plan and estimated about $8 billion in additional tax revenue over the first four years based on assumptions about consumers shifting from illicit to legal purchases.
- Public health experts and the Labor opposition warn the cut could raise smoking and vaping rates and say there is no clear evidence that lower legal prices will eliminate the illicit market.
- Key practical questions remain over whether tobacco companies and retailers will pass savings on to shoppers, how illegal sellers would respond on price and supply, and how enforcement will be measured.