Tobacco Control

Polley highlighted the government's commitment to cracking down on illicit tobacco, noting $346 million in funding for the Australian Border Force since 2023-24 and the appointment of an illicit tobacco commissioner. Polley detailed enforcement successes, including the seizure of 14 million vape products and over a billion illicit cigarettes since January 2024. Polley emphasised the establishment of the National Disruption Group to coordinate efforts across jurisdictions and argued that vapes are not safe alternatives, linking them to increased smoking rates among users.

Roberts argued that continuous tax increases had failed to stop smoking and instead fuelled the black market, diverting funds from the government to organised crime. Roberts cited wastewater testing data indicating a 150 per cent increase in smoking rates over seven years and claimed tobacco excise revenue had fallen to $3.5 billion. Roberts proposed a 75 per cent excise reduction, drawing parallels to Canada's successful policy, and criticised the World Health Organization's influence on Australian tax policy.

O'Sullivan stated that the illicit tobacco trade yields revenue ranging from $4.1 billion to $6.9 billion for criminal organisations, funding further violence and drug trafficking. O'Sullivan outlined the Coalition's plan to cut excise by 80 per cent, reducing the tax on a standard packet from around $30 to just over $6, to narrow the price gap with illicit goods. O'Sullivan added that this would be supported by a $200 million law enforcement surge and a $60 million public health campaign, claiming the Parliamentary Budget Office estimated the package would improve the budget by $8 billion over four years.

Stewart argued that the illicit tobacco market existed before the current government took office and that enforcement had fallen behind under the previous administration. Stewart highlighted the passage of the Combating Illicit Tobacco Bill, which increased penalties and strengthened law enforcement powers, and noted the success of state-level closure orders in Queensland and South Australia. Stewart rejected the Coalition's excise cut proposal, stating there was no evidence it would reduce crime and warning it would surrender health policy to organised crime and the tobacco industry.

Steele-John advocated for evidence-based solutions, including stronger enforcement, better data sharing, and a national track-and-trace system, while rejecting excise reductions. Steele-John cited Senate inquiry evidence suggesting that lowering taxes would likely increase the illicit market and benefit tobacco corporations. Steele-John pointed out that the Liberal Party had received significant donations from Philip Morris and American British Tobacco, questioning the motives behind their policy proposal.

Cadell criticised the government for failing to curb the influx of illicit tobacco, describing the situation as worsening from a 'drip' to a 'rush' over four years. Cadell cited specific instances of violence, including firebombings in Melbourne and shootings in New South Wales, and argued that high prices drive consumers to the illegal market where products may contain harmful substances like arsenic. Cadell contended that the current prohibition model fails to protect young people, who switch to cheaper illicit cigarettes, and called for removing the profit motive for criminals.