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Liberal leader vows to ‘smash’ crime with tobacco tax cut
The Coalition says the cuts would undercut illegal sellers and pair with $200 million in enforcement against organised crime.
On Thursday, Opposition Leader Angus Taylor unveiled a proposal to slash tobacco excise by 80 per cent, aiming to undercut the black market with $200 million in joint federal and state support targeting organised crime.
Taylor defended the policy on Sunrise, arguing Australia faces a "national organised crime crisis" fueled by illicit tobacco trade where illegal cigarettes sell for as little as $10 a pack.
The Coalition proposal also seeks to legalise, regulate, and tax vapes and nicotine pouches while introducing a $60m national public awareness campaign on organised crime links to illegal tobacco.
Labor senators questioned whether the excise cut would reduce criminal supply, citing a lack of credible modelling, while health authorities warned expanding vape access could reverse Australia's long-term decline in smoking.
Recent Senate committee figures estimated illegal products accounted for 80 per cent of nicotine consumed nationally in 2025, while the Australian Criminal Intelligence Commission linked illicit tobacco competition to more than 200 firebombings.