Illegal Tobacco Trade Costs Australia $6.9 Billion in Revenue, Federal Budget Reveals

The government allocates $157 million to combat the black market, but entrenched organized crime and high taxes complicate enforcement efforts.

The Australian federal budget has recorded a $6.9 billion shortfall in tobacco excise revenue over five years due to the booming illegal tobacco trade.
High excise taxes on legal cigarettes have driven consumers to cheaper black market alternatives, significantly reducing government revenue.
The government has announced $157 million in funding over two years to strengthen law enforcement and border control to address the issue.
The illegal tobacco trade is linked to organized crime, with reports of violence, arson, and territorial disputes escalating across the country.
Analysts warn that the scale and infrastructure of the black market may limit the effectiveness of enforcement efforts, raising concerns about long-term impacts on revenue and public safety.