TODAY’S FEDERAL ILLEGAL TOBACCO LAWS A GREAT START, BUT MORE NEEDS TO BE DONE

MEDIA RELEASE
15 February 2018
The Australasian Association of Convenience Stores today welcomed the announcement by the Federal Government of tougher penalties for illegal tobacco farms, saying it was a great first step.
“Taxpayers lose $1.6 billion in excise each year as a result of illegal tobacco, and that money is literally diverted from hospitals and schools to criminals,” said the Association’s CEO, Jeff Rogut.
“That is 1.6 billion dollars up in smoke, and it is great that the Federal Government, and Revenue and Financial Services Minister, Kelly O’Dwyer, are giving this issue legislative attention.”
Laws flagged today would see maximum fines for excise offences grow from $105,000 to $315,000, and jail terms from two to 10 years, which is a significant deterrent for illegal tobacco farms.
The laws would also make it easier to prosecute, because investigators would no longer have to prove whether illicit tobacco was grown domestically or imported, before applying the offences.
Almost 120 tonnes of illicit tobacco was reportedly seized and destroyed by the Australian Taxation Office in the last 18 months, with an excise value worth around $91 million.
“Illicit money is illegally grown, illegally imported or illegally obtained, and while this legislative package is a great start, it only really applies to one of those elements,” Rogut said.
“We need a more comprehensive approach to attack this scourge, which stretches beyond any one legislative package.
“It is not a criticism, it’s a fact when I say the excise on tobacco has made it extremely expensive, and therefore extremely valuable, and is stimulating a growing illegal trade.
“In practice that means people are growing it illegally, they are selling it illegally, they are importing it illegally, and it encourages sometimes terrifying break ins at shops like my members and other legitimate retailers.
“Further, the issue is policed by multiple departments and all three levels of government, meaning that even when you do report illegal activity, often nothing is done because ‘it’s not my problem’.
“So while I think that this legislation is a really decent and commendable effort, we need to start moving towards a national, coordinated effort to stamp out illegal tobacco.
“Everyone from the shop owners who can’t compete with illegal tobacco, the shopkeepers who are robbed, and the taxpayers who are missing out on the revenue, are being affected.
“I’m more than happy to meet with the Minister to further detail these concerns, which are shared by retailers across Australia.”
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