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Australia's illicit tobacco market shrinks for first time after years of growth

1h

Summary

  • Australia's illicit tobacco market has fallen for the first time after five years of growth averaging 22.6 per cent a year, new figures show.
  • The Illicit Tobacco and E-cigarette Commissioner estimates the market dropped from a peak of 5,972 tonnes to 5,893 tonnes, possibly as low as 4,453 tonnes.
  • The government credits stronger border and criminal enforcement, record seizures including 730 tonnes in three months, and the closure of 1,300 stores.
  • The National Disruption Group, spanning 31 agencies, has run more than 600 operations since October 2025, seizing 24 million illicit cigarettes and 3.6 tonnes of loose-leaf tobacco.
  • The Coalition and One Nation have proposed slashing the tobacco excise by 80 per cent and 75 per cent; Labor warns this risks undoing the progress.
  • Up to four in five nicotine products smoked in Australia are illegal, and daily smoking has fallen to a record low of 5.8 per cent.

Reactions

  • Assistant Minister for Customs Julian Hill said every seizure, closure, and disrupted network sends a message that authorities know who criminals are.
  • New Zealand Customs assistant comptroller Terry Brown said illicit tobacco challenges are transnational and require connected enforcement partnerships.
  • New Zealand Customs praised Australia's multi-agency model as helping shape its own enforcement response.
  • Labor warned the Coalition's proposal to slash the tobacco excise risks undermining the gains against illicit tobacco.
  • The opposition proposed legalising and taxing vape and nicotine pouch alternatives to help regulate their content.

Timeline newest first

  1. The Coalition proposed cutting the tobacco excise by 80 per cent and One Nation by 75 per cent, while Labor warned the cuts risk undermining progress against illicit tobacco.

Sources newest first

  • Volume of illegal tobacco shrinks after years of rapid growthabc.net.au· 1h

    An ABC News report by Ewa Staszewska says Australia's illicit tobacco market has shrunk for the first time after five years of growth averaging 22.6 per cent a year, falling from a peak of 5,972 tonnes. The government credits stronger enforcement, record seizures including 730 tonnes in three months, and 1,300 store closures, while the Coalition and One Nation propose slashing the tobacco excise.