Tobacco Excise Cuts Sharpen Australian Political Debate

Date

Spread the love

Arabic version: تخفيضات ضريبة التبغ تحتدم في الجدل السياسي الأسترالي

According to The Guardian, tobacco industry lobbying has returned to prominence as the Coalition and One Nation pledged substantial cuts to Australia’s tobacco excise. Pauline Hanson proposed a 75% reduction, while opposition leader Angus Taylor promised an 80% cut and $200m for stronger law enforcement against organised crime.

Tobacco manufacturers have sought major reductions in excise for decades, and their case has intensified as illicit cigarettes have expanded. The illicit trade now accounts for 80% of tobacco consumption, the report said. During a parliamentary inquiry in May, Philip Morris executives appeared in a private hearing at Parliament House, a move described as a departure from longstanding bipartisan practice of dealing with cigarette manufacturers transparently.

Public-health advocates said a lower excise could aid tobacco companies and undermine efforts to reduce smoking. University of Sydney expert Becky Freeman said the industry had become increasingly visible after previously operating more quietly. David Hill argued that cheaper legal cigarettes would not necessarily substantially reduce organised crime, because illegal producers could still lower prices while making a profit.

The Nationals remain the only major party accepting tobacco-company donations. In 2024-25, the party received $225,500 from two large manufacturers. Nationals leader Matt Canavan said tobacco firms were legal businesses free to donate and argued that insufficient engagement with the legal industry had contributed to a major policy failure.

Support for an excise cut includes economist Richard Holden, former deputy chief medical officer Nick Coatsworth and former border force official Rohan Pike. However, the Public Health Association of Australia warned of a possible rise in daily smoking, which fell to 5.6% in 2025. The Cancer Council and Australian Medical Association also raised concerns about nicotine addiction. The World Health Organization reiterated that taxes should continually reduce tobacco affordability and demand.

About the Author

More
articles