One Nation proposes 75% cut to cigarette excise to curb black-market trade

One Nation’s Pauline Hanson announced a plan to slash the tobacco excise by 75% and suspend indexation for three years, hoping to bring the price of legal cigarettes close to that of illegal ones and undercut organized crime profits. The party cites the tobacco commissioner’s estimate that over half of all cigarettes consumed in Australia now come from the black market, eroding up to $12 billion in annual tax revenue. Health Minister Mark Butler has acknowledged the surge in illicit trade and associated crimes such as arson, but the federal response remains focused on raids of more than 100 suspected retailers and increased compliance resources.

One Nation MP Barnaby Joyce echoed the view that high taxes fuel the mafia, while Senator Matt Canavan questioned the fiscal impact of such a cut. The Australian Medical Association warned that tax reductions have not proven to curb illegal trade elsewhere. Treasury Minister Jim Chalmers reiterated that a tax cut is not under consideration, emphasizing a law-and-order approach.