The illegal tobacco industry in Australia is rapidly expanding, and it’s costing taxpayers billions.
Despite its links to violent crime, including firebombings and organised criminal activity, the demand for cheaper smokes and vapes continues to rise.
The government is now set to spend $150 million to tackle the growing problem, but is it “too little, too late”?
On Tuesday morning’s episode of The Briefing, we spoke to former Australian Federal Police Officer Rohan Pike, who led one of the country’s illicit tobacco task forces.
Pike argued that the government’s high tobacco taxes are exacerbating the issue.
As cigarette prices soar, more Australians are turning to the black market for affordable alternatives, creating a nearly $7 billion hole in the federal budget.
“I tried to alert authorities then. They didn’t ramp up the enforcement response. Now they are, and it’s possibly too little, too late,” Pike said.
The issue is particularly dire in Victoria, where illegal tobacco operations have been linked to a rise in arson attacks.
In New South Wales, more than 5,000 new outlets have opened, with authorities continuing to investigate smuggling and illegal sales.
“We’ve really been touching them with kid gloves at the moment, and we need to take those off and get really serious about these criminals,” he said.
Pike said the Australian government is struggling to keep up with the scale of the problem.
“When you’ve got a choice between $10 to $15 and say $45, it’s a no-brainer that people will go for the cheaper product now.”
With new laws coming into effect in mid-2025, the penalties for selling illegal tobacco will be severe, including up to 15 years in prison and fines of up to $1.7 million for businesses.
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