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Chris Richardson

How a $10 billion tobacco tax became a smuggler’s jackpot

Our tobacco policies haven’t made it more expensive to smoke. They’ve actually made it cheaper to smoke and led to a state-sponsored boom in organised crime.

Australia has been on a mission to make it much more expensive to smoke. We’ve hugely increased the tax on cigarettes, starting with a big bang under Kevin Rudd, followed by further round under this government.

The plan was simple: we were going to improve the nation’s health and its fiscal finances at the same time. Two birds, one stone.

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Chris Richardson is an independent economist.

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    Original URL: https://www.afr.com/politics/federal/how-a-10-billion-tobacco-tax-became-a-smuggler-s-jackpot-20250326-p5lmmt