ILLICIT TOBACCO IS HARMING AUSSIE COMMUNITIES

Australia’s tobacco black market is now one of the largest in the developed world. Around four in every five nicotine products used in Australia are bought illegally.

Criminal syndicates are fighting turf wars over tobacco shops, and the legal, licensed retailers who play by the rules are losing their customers to criminals.

Legal tobacco sales in convenience stores fell 28.8% in 2025 – a loss of more than $750 million in a single year and about $1.6 billion over three years (AACS State of the Industry Report 2025).

The ABS estimates around 80% of nicotine consumed in Australia in 2025 was illicit. Tobacco excise revenue has fallen from $16.3 billion in 2019–20 to a forecast of about $4.1 billion in 2025–26, and the Australian Border Force seized more than 2,300 tonnes of illicit tobacco in 2025–26 alone.

High prices haven’t stopped people smoking – they’ve handed the market to organised crime. We need a reset of tobacco excise to a level that removes the black market’s price advantage, and properly funded enforcement to shut down illegal sellers.

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Tell your federal MP the current approach isn’t working. High prices haven’t stopped people smoking – they’ve handed the market to organised crime.

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Now is the time to act. Illicit tobacco is hurting legitimate retailers and funding organised crime.

Tell your local federal MP what you think.

Review and edit the text of your letter below before sending it to your local MP.

Dear (MP name)

I am writing as a constituent to express my concern about the growth of the illicit tobacco market in Australia and the damage it is doing to legitimate retailers like me and to our community.

1. Legal retailers are being pushed out. The AACS 2025 State of the Industry Report found legal tobacco sales in convenience stores fell 28.8% in 2025, a loss of more than $750 million in one year and $1.6 billion over three years. That trade hasn’t disappeared – it has moved to illegal sellers who don’t check ID, don’t pay tax and don’t follow the law.

2. The policy is failing on its own terms. The ABS estimates around 80% of nicotine consumed in 2025 was illicit. Tobacco excise revenue has fallen from $16.3 billion in 2019–20 to around $4.1 billion this year – billions of dollars that should be funding health, housing and cost-of-living relief are now going to organised crime.

3. Criminal syndicates are profiting. Illicit tobacco is funding organised crime, and the fight for control of the trade has led to arson attacks on shops and danger for workers and the public.

4. Prohibition-style pricing doesn’t work. We have seen the same thing happen with vapes. When legal products become unaffordable or unavailable, a black market fills the gap and sells to anyone, including children.

5. Enforcement must be properly funded. Record seizures by the Australian Border Force show the scale of the problem, but enforcement at the border and in our streets needs to be sustained and properly resourced.

I urge you to support a reset of tobacco excise to a level that removes the black market’s price advantage, alongside stronger, well-funded enforcement against illegal sellers. I would welcome the opportunity to meet with you to discuss the impact this is having on my business.

Yours sincerely,

ILLICIT TOBACCO IS HARMING AUSSIE COMMUNITIES

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