Without Notice

Bill Debate · Second Reading

Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026; Second Reading

House of Representatives · Monday 12 October 2026

Continued from Thursday 17 September 2026.

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

At a glance

The debate centred on the Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026, with government members arguing it modernises enforcement to combat organised crime and protect public health. Opposition and One Nation members supported the enforcement provisions but contended that high excise taxes drive consumers to the black market, advocating for significant tax reductions instead. Cameron Caldwell highlighted the link between high taxes, the absence of health warnings on illicit goods, and increased violence, while Barnaby Joyce moved an amendment for a 75 per cent excise cut. The discussion emphasised the tension between public health objectives and the economic incentives fueling criminal activity.

Outcome

The debate was interrupted before a vote was taken.

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

How the debate unfolded

Continued the debate

Payne supported the bill as a necessary modernisation of enforcement tools to tackle sophisticated criminal networks. Payne argued that existing laws required proof of intent to defraud, a high bar that allowed criminals to operate with impunity. The proposed reforms would allow prosecution based on reasonable suspicion derived from observable indicators, such as non-compliant packaging or prices below tax thresholds. Payne rejected opposition calls to cut tobacco taxes, stating that illegal tobacco would remain cheaper regardless of tax reductions because criminals evade duty entirely. Payne emphasised that lowering taxes would increase smoking rates, particularly among young people, and undermine decades of public health progress.

Opposition response

Birrell stated the coalition would not oppose the bill, acknowledging it provided sensible enforcement improvements. However, he argued the government's overall response was incomplete and had failed to address the root cause of the illicit market's profitability. Birrell highlighted the extreme price differential between legal and illegal products, citing examples from his electorate where illicit cigarettes cost a fraction of the legal price. Birrell outlined the coalition's alternative policy, which included an 80 per cent excise reduction, a nationwide law enforcement blitz, and a regulated adult market for nicotine vapes. Birrell contended that this integrated approach would collapse the price incentive for the black market while maintaining health protections.

Get updates like this by email