Nationals unveil plan to target illicit tobacco trade

By Melissa Blewitt

A major overhaul of Australia’s tobacco laws could have implications for Condobolin residents, with the Nationals and the Liberals proposing an 80 per cent cut to tobacco excise as part of a plan to undermine the illicit market and target organised crime.
Federal Member for Parkes Jamie Chaffey, along with his Coalition colleagues, is promoting a plan which would combine a major reduction in tobacco excise with increased law enforcement and a regulated market for vapes and nicotine pouches.
The proposal includes an 80 per cent cut to tobacco excise, reducing the excise component of a standard packet of 20 cigarettes from about $30 to just over $6.
The Coalition said the measure is intended to narrow the price gap between legal and illegal tobacco and reduce the profits available to organised crime.
The plan would also provide $200 million for a nationwide law enforcement surge, targeting illegal tobacco retailers, imports and the criminal networks involved in the trade.
The Australian Border Force, Australian Federal Police, Australian Criminal Intelligence Commission and AUSTRAC would be given stronger direction to target the supply chains and finances of organised crime groups under the proposal.
The Coalition has also proposed legalising, regulating and taxing vapes and nicotine pouches for adults, replacing the current pharmacy-only model for vapes and restrictions on nicotine pouches.
Under the proposal, nicotine vapes would attract an excise of 50 cents per millilitre of e-liquid, while nicotine pouches would be taxed at 2.5 cents per milligram of nicotine.
The Nationals argue that Australia’s current approach has contributed to a growing black market.
The policy states that legal tobacco prices have increased substantially since 2016, while illegal tobacco prices have remained comparatively stable.
It cites estimates that illicit tobacco accounted for about 10 per cent of consumption in 2017, compared with an estimated 80 per cent in 2025.
The Government has also estimated organised crime groups are making between $4.1 billion and $6.9 billion in profits from illicit tobacco.
The Coalition says those profits are being channelled into other criminal activities, including drug trafficking, scams and money laundering.
Mr Chaffey said the issue was a national law and order crisis.
“You don’t bring organised crime to its knees by protecting its business model,” Mr Chaffey said.
“You have to destroy the business model, and that’s what the Coalition’s policy will do in the Parkes electorate.”
The proposal includes a review of the tobacco excise rate after two years, with the stated aim of maintaining a legal market while preventing the illicit market from rebuilding.
A $60 million, three-year public awareness campaign would also be established to highlight the organised crime links to illegal tobacco and vapes and warn about the risks associated with smoking.
The Coalition says strong protections for children would remain part of its proposed regulated market for nicotine products.

Last Updated: 14/10/2026By

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