Leading public health experts, the Australian Medical Association and Labor have rejected Angus Taylor’s plan to cut tobacco excise by 80%, labelling the move to curb soaring illegal cigarette sales as a backward step on tobacco control. Taylor and Nationals leader Matt Canavan on Thursday announced plans for an 80% cut to excise, as well as moves to legalise and regulate vapes and nicotine pouches. The announcement comes weeks after One Nation leader Pauline Hanson proposed a 75% cut.
The opposition leader said the cut would reduce the excise on a standard packet of 20 cigarettes from about $30 to about $6, arguing it would undermine illicit tobacco dealers, who currently control more than half of all sales in Australia. A Coalition government would spend $200 million on a law enforcement push against illicit sales, with increased funding for the Australian Border Force, federal police and other agencies. Labor has resisted calls to cut the excise rate, arguing there is no clear price point which would reverse the boom in black market sales.
World Health Organisation expert Benn McGrady said WHO recommends governments around the world raise taxes on tobacco products, and prices relative to real incomes, to ensure affordability is reduced over time. Reduced affordability reduces demand, lowering the burden of disease. These require a continued commitment from government and are the most important factor in ensuring compliance.” Australian Medical Association president Danielle McMullen said the Coalition’s plan would undermine decades of public health efforts and even drive more Australians back to smoking.
She said countries including Canada had seen an increase in smoking rates, including among young people, after excise cuts. If cars killed as many people as tobacco, people would be outraged about the road toll. Pike has advised nicotine industry-linked organisations.
The trio wrote to Prime Minister Anthony Albanese on Thursday, urging him to adopt the excise cut and warning increased accessibility of illegal cigarettes had undermined tobacco control strategies.
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