Question Time AU

General Debate

Illicit Tobacco

Senate · Thursday 10 September 2026

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

At a glance

Liberal senators moved a motion condemning the government's tobacco excise policy for fueling an illicit market controlled by organised crime. They argued that high taxes have caused revenue collapse and increased violence against legitimate businesses. The opposition proposed an 80 per cent excise cut, increased law enforcement funding, and public education campaigns. They cited international examples and local incidents to support their multi-pronged approach.

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

How the debate unfolded

Opened the debate

Duniam argued that the government's repeated tobacco excise increases have driven consumers to the illegal market, benefiting criminal syndicates. Duniam stated that legal cigarette prices averaging between $40 and $60 contrast sharply with illicit packs costing $10 to $15. Duniam highlighted the social harm, including firebombings, extortion, and deaths, which he attributed to the current policy settings. Duniam proposed an 80 per cent excise reduction for two years, alongside $200 million for law enforcement and $60 million for education. Duniam referenced Canada's experience, noting that combining tax adjustments with enforcement reduced illicit consumption from 28 per cent to 11 per cent.