How smoking makes Australians poorer – and what we can do about it |
Australia has some of the world’s highest cigarette prices. Smoking half-a-pack a day costs about A$7,000 to $12,000 per year at prices of around $38–66 a pack in the legal market. Buying from the illegal market costs about $3,500 per year.
Australia also has some of the world’s highest tobacco taxes, driven by a rapid rise in tobacco excise since 2010.
As cigarette prices have risen, so too has concern about the impact on low-income households. Critics argue tobacco taxes place an unfair burden on people with fewer resources, while contributing to a growing illicit market.
Some – including the Coalition and One Nation – have called for tobacco taxes to be slashed by 80% or 75% respectively, while others have argued for them to be abolished.
Making cigarettes cheaper may seem a logical fix. However, our study suggests it would risk making smoking-related poverty in Australia worse overall.
When smoking crowds out the essentials
A lesser known harm of smoking is what researchers call “smoking-induced deprivation”. This is when spending on cigarettes leaves people without enough money for food or other essentials, such as rent or electricity bills.
To examine this issue, we analysed data from 26,888 people who smoked at least monthly in Australia, England, Canada and the United States between 2016 and 2024.
In our new study, published in the journal Addiction today, we found the proportion of people who smoke who reported smoking-induced deprivation had increased in all four countries........