More Commonwealth cash for illicit tobacco crackdown

Federal Budget

Shaun Hollis

Senior Journalist

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Tobacco shops in Mossman and Port Douglas have been shut down in the past year. Picture: Shaun Hollis

The Federal Government will continue to commit more money to trying to stamp out the multiple spotfires of illegal tobacco importation and sales.

This includes $14m to “boost the states’ and territories’ capabilities to disrupt the illicit tobacco and e-cigarette markets – including for transport, storage and disposal of seized tobacco and e-cigarettes”, according to last week’s Federal Budget. 

A pair of tobacco shops in Douglas Shire have been shut down by Queensland health authorities since the recent crackdown on illicit tobacco sales - one in Mossman and one in Port Douglas.

The December mid-year Federal estimate of the amount of money the Government was expected to make on tobacco taxes was $5.45 billion, but the eventual amount has been predicted to be $4.13 billion, down about $1.3 billion.

By comparison, the amount the Government made on beer tax was $2.72 billion, spirits $3.27 billion and other alcoholic beverages such as mix cans like UDLs $1.81 billion.

The Government said in the Budget it would provide $20.3m from July to combat the illicit tobacco market. 

This funding includes: $5.2m over four years from 2026–27 to undertake regular data collection, analysis and monitoring to understand nicotine and tobacco product use and markets, and $1.1m in 2026–27 to meet Australia’s international tobacco control obligations, including support for Pacific partners.

“The Government will strengthen and enhance law enforcement powers to investigate illicit tobacco‑related offending through amendments to Treasury and Home Affairs portfolio legislation,” the budget papers state. 

“These include increased monetary and imprisonment penalties for illicit tobacco offences, nationally consistent protective order power for restraining order applications, and expanded law enforcement powers to target proceeds of crime, unexplained wealth and tainted property.”