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.