One Nation Wants Tobacco Tax Slashed

One Nation is proposing a major cut to Australia’s tobacco excise, arguing lower legal cigarette prices could reduce demand for illicit tobacco and disrupt organised crime.

The party says it would cut the tobacco excise by 75 per cent and pause indexation for three years, alongside increased enforcement targeting the illegal tobacco trade.

Under the proposal, One Nation estimates a legal packet currently costing about $46.50 could fall to around $21 or $22 if the full excise reduction is passed on to consumers.

The policy comes amid an ongoing illicit tobacco trade, which has been linked to a series of arson attacks, extortion and violent crime, particularly in Victoria.

One Nation cited Victoria Police figures of 193 tobacco-related arsons and six homicides, as well as declining Commonwealth tobacco excise revenue, as evidence the current approach is not effectively containing the illegal market.

Large Gap Between Legal And Black Market Cigarettes 

The party also pointed to evidence presented to a Senate inquiry that illicit cigarette packets can sell for between about $12 and $25, creating a substantial price difference between legal and illegal products.

Alongside the excise reduction, One Nation is proposing stronger border enforcement, faster closure of businesses selling illegal tobacco, tougher penalties for traffickers and people organising attacks, and increased seizure of criminal assets and unexplained wealth.

The proposal represents a significant shift from Australia’s longstanding use of tobacco taxation as a public health measure designed to discourage smoking.

One Nation says the policy is intended to make legally sold tobacco more competitive with illicit products rather than encourage tobacco consumption.