CANBERRA, Australia — Australia’s federal government is using the final sitting day of the parliamentary week to advance measures on

The Coalition and One Nation will have to prove they believe a generation that has grown up thinking cigarettes are both uncool and expensive will continue to resist when the last of those barriers disappears. 

The article explores the paradox of rising black market tobacco sales alongside declining smoking rates, prompting analysis of Australia's excise tax policies. Supermarkets report a 43% annual decline in tobacco sales, with Woolworths highlighting the significant drop. Coles' data suggests tobacco sales are dragging overall growth, indicating a shift in consumer behavior. The piece questions the effectiveness of excise taxes in curbing smoking, noting that while black market darts (cigarettes) are increasing, traditional smoking rates are falling. This contradiction challenges policymakers, as the excise plan's impact remains unclear. The author emphasizes the need for nuanced approaches, balancing public health goals with economic realities. The article also references broader debates on tobacco taxation, linking the issue to Australia's slower smoking rate decline compared to New Zealand and the role of vaping. Ultimately, it underscores the complexity of addressing tobacco use in a changing market landscape.

Opposition Leader Angus Taylor has defended an 80 per cent cut to Australia’s tobacco excise as a key strategy to dismantle the illegal tobacco market fuelled by organised crime. The policy, part of the Coalition’s broader plan to address the illicit trade, involves slashing the excise by 80 per cent to make legal cigarettes more competitive with black-market products. This move is accompanied by a $200 million joint federal and state initiative targeting organised crime and illegal tobacco. Taylor argued that the current approach has failed, allowing criminal networks to profit from the illegal market, which he linked to a series of arson attacks. While acknowledging public health concerns over cheaper cigarettes, Taylor conceded the illegal market is already entrenched, with packs available for as low as $15. He stressed the need to replace the illegal market with a legal one, destroy the business model of criminal gangs, and enforce stricter laws. However, critics questioned whether the savings would actually reach consumers, with Sunrise host Natalie Barr noting the lack of immediate evidence. Taylor defended the proposal, citing consultations with the Parliamentary Budget Office, and expressed confidence that the 80 per cent cut would render the illegal trade unsustainable.