APPALLED by a recent rise in smoking, particularly amongst young people, Member for Monash Mary Aldred MP has called for a cut in the excise tax on legal cigarettes.
“The Federal Government needs to get its head out of the sand over the illegal tobacco trade,” said Ms Aldred.
“They should look at lowering the tobacco excise to a price point that doesn’t drive people towards the growing black market.”
Smoking rates for factory-made cigarettes have increased markedly since the ban on vaping sales was introduced in mid-2024, particularly for 18-24 year olds.
Mary Aldred said Australia has a major problem with the illegal tobacco trade.
“The tobacco excise tax has gone up nearly threefold since 2013,” said Ms Aldred.
“It is putting lives at risk, increasing smoking rates, driving profits to organised crime and short-changing the Australian Taxation Office.
“The policy intention of an excise tax is to reduce the number of people, particularly young people, who take up smoking. Because of the financial impost, legal cigarettes are already taxed at among the highest levels in the world.
“All of us want to see a reduction in the number of people smoking and the number of people who take it up; the unintended policy consequence has been a surging black market in illegal tobacco.”
Taskforce Lunar arrested a number of people across the Bass Coast earlier this year following a series of alleged commercial burglaries where cigarettes and alcohol were stolen and service stations and grocery stores were targeted.
Mary Aldred said the illegal tobacco trade was leading to an escalation in violent crime.
“The Albanese Federal Government needs to do better than sit on its hands while gangland thugs direct their cartels from here and abroad, terrorising small business owners, assaulting retail staff and
short-changing the tax office.”
Ms Already said adjusting the tax excise on tobacco may not be a silver bullet, but it could strip away the existing incentive for a black market in tobacco.
“It might save some lives as well,” said Ms Aldred.
“I’ve heard from many people across the Bass Coast and South Gippsland Shire areas who are seriously concerned about the rise of illegal tobacco operators and the risk they pose to our community.
“That’s why I’ve listened locally and stood up nationally because we need to act now.
“I’m also standing up for the safety of retail staff and small business owners who have been assaulted during violent attacks and continue to experience break-ins and threats.
“Both the Victorian and Federal Labor Governments need to get real about the ongoing violent crime this issue is driving,” said Ms Aldred.
Responding to Mary Aldred’s suggestion to lower the tax excise on cigarettes, Federal Health Minister Mark Butler said he would be concerned it could make smoking even more attractive.
“It’s going to have to be a massive cut to the price of legal cigarettes to be able to compete with criminals. It might sound attractive at first blush, but it’s not practical.”