Australians are spending less to consume more nicotine as illegal tobacco trade explodes
Summary
Australians are using more nicotine now than eight years ago, but they are spending less money on it because most cigarettes smoked are cheap, illegal products. The illegal tobacco market has grown a lot, making it harder for the government to collect taxes and fight health problems.Key Facts
- Nicotine use in Australia increased by 40% from 2017 to 2025.
- Population growth in the same period was 14%.
- Illegal tobacco went from 12% of total consumption in 2017 to 80% in 2025.
- Legal cigarette prices tripled, but illegal cigarette prices stayed steady.
- Government tax revenue from legal tobacco dropped to the lowest in 14 years, causing a $6.9 billion budget gap.
- New South Wales and Victoria have introduced strong penalties, including heavy fines and prison time, for selling or possessing illegal tobacco.
- There is debate about whether lowering taxes on legal tobacco would help reduce illegal sales or if tougher law enforcement is better.
- The ABS used new methods, including wastewater testing, to estimate illegal tobacco use for the first time.
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