What’s Happening?
Federal Member for Bowman Henry Pike has backed the Coalition’s plan to tackle Australia’s illegal tobacco and vape trade. He highlighted illegal tobacco shops operating and opening across the Redlands.
The proposal seeks to reduce the price gap between legal and illegal tobacco. It would also increase enforcement against organised crime and legalise, regulate and tax vapes and nicotine pouches for adults.
Why It Matters
Mr Pike said illegal tobacco businesses were connected to a criminal industry generating substantial profits from Australians. He said those profits were helping fund other serious organised crime. “These businesses are not harmless black-market operators. They are part of a sophisticated criminal industry making billions of dollars from Australians, with those profits helping fund other serious organised crime,” said Mr Pike.
He said legitimate businesses were also facing pressure as criminal groups competed for control of the illegal tobacco market. “Local businesses already under pressure from rising costs are now being forced to look over their shoulders as criminal gangs fight for control of the illegal tobacco trade,” Mr Pike said.
Mr Pike said the scale of Australia’s illicit tobacco market showed the current approach was failing. “The illicit tobacco trade has been linked to extortion, firebombing’s and organised criminal networks involved in drug trafficking, money laundering and other offences,” said Mr Pike.
Local Impact
Mr Pike highlighted instances of illegal tobacco shops operating and opening across the Redlands. He said the effects of the illicit trade had already been experienced locally. “We’ve seen this take place in the Redlands and the community is entirely sick of it.”
He said the Coalition’s approach would address the illegal market through taxation changes and stronger enforcement. “The Coalition’s proposed approach would tackle both sides of the problem by reducing the enormous price gap between legal and illegal tobacco while giving law enforcement greater resources to target the criminal networks behind the trade,” said Mr Pike.
“For the Redlands, this is about fixing our economy and protecting our way of life,” said Mr Pike.
By The Numbers
- $4.1 billion to $6.9 billion is the estimated profit organised crime groups make from illicit tobacco.
- 80 per cent is how much the Coalition proposes to cut tobacco excise and reduce the price gap.
- $260 million would support enforcement and public awareness, including $200 million for enforcement and $60 million for education.
Zoom In
The Coalition’s plan proposes a cut to tobacco excise. It would also legalise, regulate and tax vapes and nicotine pouches for adults. The proposed nationwide law enforcement surge would target illegal shops and intercept illicit tobacco. It would also target criminal networks behind the trade. A national public awareness and education campaign would run for three years.
The Coalition says its approach would target profits from illegal tobacco and vapes. “The answer cannot simply be to keep increasing taxes while organised criminals take over more of the market,” Mr Pike said. “We need to remove the enormous profit incentive that has allowed this criminal industry to flourish, while giving police and other law enforcement agencies the resources they need to shut down the criminals who remain.”
Zoom Out
Illicit tobacco now accounts for a dramatically increasing share of tobacco consumption. Meanwhile, tobacco excise revenue has fallen substantially as consumers move away from the legal market. The Coalition argues that stronger action against organised crime networks must accompany efforts to reduce the financial incentive.
“That means targeting the illegal shops, seizing their products and cash, disrupting their supply chains and following the money back to the organised crime groups behind them.” The proposal combines tobacco taxation changes with enforcement against illegal retailers and their wider supply networks.
What To Look For Next?
If the Coalition’s proposal progresses, it would combine tobacco excise changes with regulated access to vapes and nicotine pouches for adults. It would also increase resources for law enforcement and public education.
Mr Pike’s focus remains on illegal shops and the criminal networks supplying them. The proposed enforcement measures would target shops, products, cash and supply chains linked to the illicit market. The plan would also seek to reduce organised crime profits while supporting enforcement against remaining illegal operators.
