Question Time AU

Matter of Public Importance

Tobacco Control

House of Representatives · Tuesday 8 September 2026

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

At a glance

The debate centred on whether high tobacco excise rates are driving an illicit tobacco market that fuels organised crime and violence, or if they are successfully reducing smoking rates. Coalition members argued that the government's policy has created a lucrative black market, leading to firebombings and murders, and proposed an 80 per cent excise cut alongside increased law enforcement funding. Labor members countered that smoking rates have reached historic lows, warning that reducing prices would reverse public health gains and that legalising vapes would increase youth addiction. The discussion highlighted conflicting views on the effectiveness of current enforcement versus the need for tax reform to dismantle criminal supply chains.

Outcome

The matter of public importance was debated without a vote being taken.

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

How the debate unfolded

Opened the debate

Hastie argued that the government's tobacco excise policy has created a national organised-crime crisis, citing over 200 firebombings in Victoria and six murders linked to the trade. Hastie stated that four-fifths of the tobacco used in Australia is illegal, with the illicit market valued between $4.1 billion and $6.9 billion each year, while legal excise revenue has halved since 2019-20. Hastie claimed the large price gap between legal and illegal cigarettes incentivises consumers to buy from criminal networks, which fund other illicit activities. Hastie proposed slashing the tobacco tax by 80 per cent, lowering the tax part of a packet from around $30 to $6, to destroy the black market's price advantage. This would be supported by a $200 million law enforcement surge and the legalisation and regulation of vapes and nicotine pouches for adults.

Government response

Hill argued that smoking rates have continued to fall, reaching record lows of 5.8 per cent among adults, and that vaping rates have stabilised. Hill contended that the opposition's policy would drive up smoking rates, increase hospital admissions, and divert health funding, describing it as a surrender to organised crime and big tobacco. Hill stated that illicit tobacco is a global issue driven by criminal syndicates, not solely by Australian tax policy, and highlighted record levels of border disruptions and seizures. Hill warned that even if excise were removed, illegal cigarettes would remain cheaper due to global production costs, and that the opposition's plan lacked modelling on health impacts. Hill emphasised that the government is acting on all fronts to disrupt criminal syndicates before, during, and after border crossings.