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NSW Premier Urges Excise Cut to Curb Illegal Tobacco Trade

Jim Chalmers rejects lower tax option, pledging extra funding for enforcement

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Overview

  • Chris Minns says doubling of federal tobacco excise since 2019 has driven smokers into a black market that cut legal revenue from A$16 billion to about A$9 billion in NSW.
  • Treasurer Jim Chalmers and Health Minister Mark Butler contend cheaper cigarettes won’t deter organised crime, arguing enhanced compliance is the more effective response.
  • The federal budget adds A$157 million to the fight against illicit tobacco, topping up a previous A$188.5 million package for border enforcement.
  • Australian Border Force figures indicate criminal syndicates control roughly three-quarters of the illegal tobacco trade, which has fuelled violent incidents and arson attacks.
  • Victoria’s Enver Erdogan calls for a unified national strategy to address the price gap that is propelling consumers toward illicit cigarettes.