AACS: AUSTRALIANS MORE WORRIED THAN EVER ABOUT TOBACCO CRIME

February 25, 2019: Australians are more worried than ever about tobacco criminals selling illegal smokes in the community, demanding Government do more to crack down on black market cigarette crooks, according to new independent research released this month.
Such is the level of concern in the community, the issue of illicit tobacco could even influence the majority of people’s votes, according to the research commissioned by the Australasian Association of Convenience Stores (AACS) and involving approximately 3,400 Australians of voting age nationally.
A follow-up of the research initially undertaken in September 2016, which was the most comprehensive ever undertaken in Australia on the illicit tobacco issue, the new research measures people’s concerns about the illicit tobacco trade, whether they think Government should be doing more and if so what, and whether they feel strongly enough for it to influence their vote.
In September 2016, 50% of Australians felt more urgent action was needed by Government given the litany of problems illicit tobacco crimes cause in communities around Australia. Today, that number is up to 55%.
According to the Illicit Tobacco in Australia 2017 Full Year Report produced by KPMG LLP, the proportion of illicit tobacco consumption rose from 14.3% of total tobacco consumption in 2016 to 15% in 2017. It cost the Government a staggering $1.91 billion in excise in 2017 that would have otherwise been collected from legal tobacco sales. The 2018 numbers are likely to tell a similar story.
To crack down on the illicit trade of tobacco, the new AACS research shows majority support from both smokers and non-smokers for freezing the legal tobacco excise to prevent illegal cigarettes becoming even more attractive to consumers due to their lower price. Freezing the legal tobacco excise received 80% support among smokers and 59% support among the total population.
In all, 55% of Australians feel strongly enough about the issue of illicit tobacco in the community for it to influence their vote, depending on the different strategies the major parties may propose to tackle this crime. If the major parties differ on policy, 51% of people will actually consider shifting their vote based on these policies.
It all adds up to the need for all political parties to take illicit tobacco crimes seriously and come up with a coordinated response combining zero tolerance with demand minimisation, AACS CEO Jeff Rogut says.
“The new research shows that people want more preventative action at a Customs level and also when it comes to setting legal tobacco policy, in order to minimise both the supply and demand for illegal tobacco,” Mr Rogut says.
“They also want tougher penalties for people caught buying and selling illicit tobacco products.
“Given that legal tobacco accounts for approximately 38% of a typical convenience store’s sales, the spike in illegal tobacco crimes has hit our sector, which is primarily comprised of small businesses, especially hard.
“It’s an election year and the research shows this issue is increasingly important to Australians. Criminals at the community level selling illegal smokes of unknown ingredients to anyone, including minors, is obviously a major concern.
“It’s time to make the trading environment for these criminals much tougher, by making their products less attractive price-wise and ensuring those caught engaging in the illicit trade meet the full force of the law,” Mr Rogut says.
The top-line research report into the illicit trade of tobacco in Australia is available to AACS members. A breakdown of the key findings is included overleaf.
Further information:
Jeff Rogut
Chief Executive Officer
Australasian Association of Convenience Stores
Ph: +61 467 873 789