Tragically, tobacco tax opened the door to organised crime

May 29, 2026 — 2:39pm

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Tobacco is a cancer, so too is organised crime. Yet good intentions have turned them into a deadly combination.

The Senate Legal and Constitutional Affairs References Committee inquiry into the illegal tobacco crisis has heard evidence on how a combination of rising government cigarette duties and lax law enforcement delivered Australia’s multibillion dollar market to organised crime.

By some estimates, 65 per cent of tobacco sales are now on the black market - up from 16 per cent in 2020. Meanwhile, businesses registered to sell tobacco products of the illicit or legal variety since 2015 has soared.

The near-tripling in the excise on tobacco over the past decade has pushed the price of a packet of cigarettes at Coles to almost $50, while an illegal version can cost less than $20 if bought under the counter at a shopping centre tobacconist.

Billions of dollars a........

© The Sydney Morning Herald