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Sydney tobacco and drug bust bolsters Minns’s call to revisit federal excise

Seizures of millions of illicit cigarettes, including over 300kg of narcotics, in Sydney underscore the unintended organised crime profits from high federal tobacco excise.

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Four men arrested on the front yard of a home in Wetherill Park
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Overview

  • Law enforcement agencies arrested seven men, seizing 20 million smuggled cigarettes alongside more than 300 kg of cocaine and liquid methamphetamine in a coordinated Sydney operation.
  • Premier Chris Minns has intensified calls for a federal review of the “massive” tobacco excise, arguing the levy has pushed consumers into the black market without reducing smoking rates.
  • The Australian Border Force estimates organised crime syndicates control about three-quarters of Australia’s illicit tobacco trade, profiting from cheaper smokes.
  • Federal tobacco excise revenue has fallen from $16.3 billion in 2019-20 to an estimated $7.1 billion next year, with the treasury forecasting a further $6.9 billion shortfall by 2029.
  • Although the federal budget included a $157 million increase for compliance and enforcement, officials warn that policing remains under-resourced and may require reassigning officers from other crime priorities.