A packet of 25 cigarettes will cost nearly $50 after Labor announced the excise on tobacco products would be increased by 5 per cent a year over the next three years, providing a $3.3 billion boost to the federal budget.

Announcing a crackdown on vaping products being marketed at young people, Health Minister Mark Butler said from September 1 the government would also begin to tax loose-leaf and roll-your-own tobacco products in the same way as cigarettes.