Tobacco Control

Mascarenhas argued that the coalition's proposal to cut excise by 80 per cent would increase smoking and vaping rates, benefiting big tobacco and undermining public health. Mascarenhas cited data showing daily smoking had dropped to an unprecedented low of nearly six per cent and daily vaping had stabilised at nearly four per cent. Mascarenhas emphasised that the government had committed over $365 million to combat illicit tobacco, resulting in significant seizures by the Australian Border Force, and argued that enforcement, not tax cuts, is the correct response to organised crime.

Price supported the motion, stating that the illicit tobacco market generates billions for criminal gangs and devastates lawful small businesses through firebombings and unfair competition. Price noted that legal cigarettes cost over $40 while illicit ones sell for $10 to $15, creating an unlevel playing field. Price outlined the Liberal Party's plan to cut tobacco excise by 80 per cent, reduce the excise on a packet from $30 to $6, and invest $200 million in law enforcement to target criminal supply chains and profits.

Coker opposed the motion, arguing that reducing tobacco excise would undo decades of progress in reducing smoking-related deaths and social acceptance of smoking. Coker highlighted government actions since 2024, including the establishment of the National Disruption Group and the seizure of more than 2,300 tonnes of illegal tobacco and 13.2 million vaping devices. Coker contended that the fall in excise revenue reflects fewer people smoking legally, which is a public health success, and that cutting taxes would not address the criminal networks behind the illicit trade.

Venning supported the motion, claiming that tobacco consumption has risen by 30 per cent over four years and the illicit market share has grown from 10 per cent to 80 per cent. Venning argued that the large price gap between legal and illegal cigarettes sustains the black market and funds organised crime. Venning detailed the coalition's four-part plan: cutting excise by 80 per cent, investing $200 million in enforcement, legalising and regulating vapes, and funding a $60 million awareness campaign, which he stated would improve the budget by $8 billion over four years.

Roberts opposed the motion, arguing that it misdiagnoses the cause of illicit trade and proposes a dangerous cure that would reverse public health gains. Roberts stated that revenue collapse is due to criminal syndicates building an untaxed supply chain, not a need for cheaper legal cigarettes. Roberts highlighted the Combatting Illicit Tobacco Act 2026 and government investments in border enforcement and asset confiscation as the correct approach to dismantling criminal business models without subsidising them through tax cuts.