Record illicit tobacco seizures over past year sees market shrink by 24 per cent in enforcement win

The Albanese government is hailing an almost 500 percent increase in seizures of illegal cigarettes over the past year as proof it’s winning the fight against illicit tobacco, pushing back against calls to also slash Australia’s high taxes for legal products.

Labor has released figures from the Illicit Tobacco and E-cigarette (ITEC) Commissioner which it says show the country’s illicit tobacco market is now smaller than it was last year, because of stronger enforcement and record border interceptions.

According to the government, the total volume of the illicit tobacco market shrank by as much as 24 per cent in the past 12 months, reversing an average annual growth of 22.6 per cent over the previous five years.

Authorities seized more than 2300 tonnes of illicit tobacco and 13.2 million vaping devices, along with a 496 per cent increase in cigarette stick seizures, and a 232 per cent increase in loose-leaf tobacco seizures, compared with the previous financial year.

Assistant Customs Minister Julian Hill claims a close to $100 million investment to support states and territories with street level enforcement and illegal shop closures has meant legal tobacco sales are rising and more smokers are calling the Quitline.

“The Government’s investment in enforcement to crack down on illegal tobacco along with public health measures to curb demand is showing results, with record seizures reversing years of growth in the illicit market,” he said.

“Every illicit cigarette seized, every store closed and every network disrupted sends the same message to criminals: we know who you are, we know how you operate, and we’re coming after you and your profits.”

A new Australian Border Force-led National Disruption Group (NDG), established 12 months ago, is being credited for coordinating 607 enforcement operations across 486 targets within Australia.

“In its first year, the National Disruption Group has built a national coordination model and supported hundreds of operational and follow-on actions by partner agencies,” Assistant Commissioner Customs Compliance and Enforcement Tony Smith said.

Mr Hill also highlighted comments from New Zealand’s Customs agency which has suggested the National Disruption Group model could be followed in that country.

“We have welcomed the opportunity to engage with the ABF, understand Australia’s experience, and draw on elements of the NDG model in shaping our own enforcement response to illicit tobacco,” New Zealand Customs Assistant Comptroller Intelligence and Investigations, Terry Brown said.

“The challenges posed by illicit tobacco are increasingly transnational, and effective responses require equally connected enforcement partnerships. By sharing intelligence, insights and operational experience, our agencies are enhancing our collective ability to identify, disrupt and deter the criminal networks that profit from illicit trade across our region.”

In recent months both the Coalition and One Nation have advocated slashing Australia’s high levels of tobacco excise, arguing smokers are instead turning to illegal products that profit organised crime, but Mr Hill has again rejected the idea.

“Now is the time to double down, not back down as the Coalition and One Nation want to do by letting vapes rip — risking young Australians getting hooked on nicotine and condemned to smoking related diseases and early death,” he said.

“The Albanese Government will not surrender our nation’s health policy to organised crime.”