What’s Happening?
Federal Member for Bowman, Henry Pike MP, has renewed calls for smarter federal tax policy following a surge in illicit tobacco crime across the Redlands. His statement comes after a tobacconist at Capalaba’s Kos Centre was fire-bombed for the third time in six months, forcing several nearby businesses to close for clean-up.
Why It Matters
According to Mr Pike, excessive tobacco taxes have created the conditions for the illegal market to thrive. He said legal cigarettes now cost more than $50 a packet, compared to $15 to $25 for illicit products, pushing consumers toward criminal networks. “Extortion, fire-bombings and mob turf wars have no place in communities like the Redlands,” he said, adding that “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.”
By the Numbers
• Legal cigarettes now cost around $50 a packet, while illegal ones sell for $15 to $25, showing the huge price gap driving demand.
• The Capalaba tobacconist at the Kos Centre has been fire-bombed three times in six months, disrupting nearby businesses.
• An estimated 40% of all cigarettes sold in Australia are now part of the illegal tobacco market.
• Since taking office, the Crisafulli LNP State Government has seized 45 million illicit cigarettes, 350,000 vapes, and six tonnes of loose tobacco, showing the scale of enforcement efforts.
• To strengthen compliance, 40 new enforcement officers have been recruited across Queensland.
Zoom In
Mr Pike said Australia’s tobacco excise has tripled since 2015, yet federal revenue has fallen. He argued that the tax has gone beyond effectiveness, enriching criminal gangs rather than improving public health. “It’s not stopping people from smoking and it’s not raising the revenue needed to fund health services,” he said.
He welcomed the Crisafulli Government’s tough enforcement measures, which have included seizing illegal products, closing down unlawful operators, introducing penalties for landlords who enable crime, and expanding the enforcement team.
Zoom Out
Mr Pike believes that enforcement alone will not solve the problem. He called on the Federal Government to reduce the excise to a more realistic level, making legal products viable again and cutting off the black market’s profit stream. “If we’re serious about stopping the violence and fire-bombings, the excise must come down,” he said.
Local Impact
Businesses at Capalaba’s Kos Centre have faced ongoing disruption and safety concerns following repeated arson attacks linked to illicit tobacco crime. The incidents have highlighted growing community unease over the reach of organised crime and its effect on local livelihoods.
What to Look for Next
Mr Pike said he will continue to advocate for a dual approach combining strong enforcement with fairer tax policy to protect Redlands businesses and reduce the incentives driving the illicit tobacco trade.
