Question Time AU

Bill Debate · Second Reading

Combatting Illicit Tobacco Bill 2026; Second Reading

House of Representatives · Thursday 4 June 2026

Continued from Thursday 14 May 2026.

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The debate focused on the scale of the illicit tobacco market in Australia and the need for stronger legal measures to combat it. Claire Clutterham supported the bill, arguing that increased penalties and enhanced proceeds of crime powers were necessary to deter organised criminal syndicates and recover lost tax revenue. Michael McCormack also supported the legislation, highlighting the significant shortfall in expected excise collections and the dominance of illegal products in the domestic market. Both members emphasised the negative impact of illicit trade on community services and legitimate businesses.

Outcome

The bill was commended to the House by the lead member.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Continued the debate

Clutterham argued that the bill aimed to increase penalties for illicit tobacco offences to match the harms caused and to enhance the effectiveness of the Proceeds of Crime regime. Clutterham stated that illicit tobacco, including unlicensed cultivation and untaxed imports, is dominated by organised crime syndicates who exploit unsuspecting landowners and retailers. Clutterham noted that the illicit market had grown to account for up to 80 per cent of tobacco products sold, resulting in a tobacco tax gap estimated at $2.7 billion in the 2023 financial year. Clutterham explained that the bill would amend several acts to increase penalties and allow telecommunications interception for serious tobacco offences. Clutterham also highlighted reforms to unexplained wealth orders to disrupt the financial benefits of criminal activity.