Nationals Leader backs regulating vapes to crush ‘black market’

David Littleproud says a $6 billion tax windfall could be used for harm reduction measures to address the growing problems surrounding vaping.

Nationals Leader David Littleproud has called for a highly regulated legal vape industry, admitting his government “got it wrong” by pushing a “failed” prescription model.

Mr Littleproud’s comments come after The Daily Telegraph revealed that taxing nicotine vapes could inject up to $6 billion to the state’s bottom line by 2026.

“I backed the prescription model, but I’ve got to be big enough I’ve got it wrong,” Mr Littleproud said.

He said vapes should be regulated similar to cigarettes.

“We’re letting a black market take over and its just got out of control,” he said.

It comes after research from the Australian Taxpayer Alliance suggested regulating and taxing vapes could generate billions in tax revenue.

The Nationals leader said that money should be spent on “better health outcomes and better health education, particularly for regional Australians”.

Illegal vapes seized by NSW Health. Picture: NCA NewsWire

Health Minister Mark Butler is still refusing to say when a promised ban on all disposable vapes will come into force, but the government will seek to move an import ban through parliament this year.

According to new research, as many as 1.6 million Australian adults are now vaping – a total of 7.9 per cent of the over-18 population.

Since December, 308,000 more people have started vaping, representing an increase of 23 per cent – according to a new Roy Morgan poll from last month.

Health Minister Mark Butler is pressing ahead with a ban on all non-prescription vapes. Picture: NCA NewsWire

The poll found that vaping has grown by 347 per cent over the last five years.

It comes after a Redbridge poll found a whopping 90 per cent of people think that regulated nicotine products should be sold through licensed outlets like tobacco and alcohol.

A costing prepared by the independent Parliamentary Budget Office (PBO) in June, commissioned by Nationals Senator Matthew Canavan, found that imposing a 20 per cent tax on vapes sold in Australia would generate $429 million in extra revenue for the government.

However, the PBO noted that the costing should be treated with “caution” because of the assumption made.

The Australian Taxpayers Alliance has done its own modelling, accusing the PBO of undercooking the money a vape tax could raise.

Regulating and taxing vapes could generate up to $6 billion in tax revenue, according to the Taxpayers Alliance Picture: NCA NewsWire

The Alliance forecast that legalising and taxing vapes could raise almost $6 billion by 2026.

ATA executive director Brian Marlow said a ban would only fuel the black market, where “criminals selling unregulated products” would continue to target kids.

“The only solution is to provide consumers with access to vape products that are regulated, taxed and sold in the same way we sell cigarettes and alcohol,” he said.

“You can then use the tax revenue to properly fund law enforcement to take on the criminal syndicates selling illicit vapes.”

The Taxpayers Alliance, and its offshoot Legalise Vaping Australia, have accepted money from tobacco and vaping companies.

Australian Association of Convenience Stores (AACS) CEO Theo Foukkare said that the Roy Morgan research reveals 92 per cent of vapers are already buying illegal products, and a ban would be ineffective.

“Australia doesn’t have a youth smoking or drinking crisis because the government strictly controls these products and ensures they are sold to adults by licensed retailers,” he said.

Convenience stores have previously warned that illegal vapes – and illicit tobacco – are costing the budget billions of dollars.

Australian Association of Convenience Stores CEO Theo Foukkare said regulating vapes would help stop the youth vaping crisis.

Mr Foukkare said cigarette sales are down 20 per cent, which has cost the budget “$1 billion in excise year alone”.

Meanwhile, experts have warned that an outright ban on nicotine vapes will actually make the problem worse.

Queensland Network of Alcohol and Other Drug Agencies CEO Rebecca Lang said regulating nicotine vapes would “absolutely” make the products safer, because authorities would be able to control the amount of nicotine in products.

“When alcohol was prohibited, high alcohol content drinks were more common and people experienced greater harms. As soon as alcohol prohibition was ended, people moved back to lower strength alcoholic drinks. You will see the same thing if liquid nicotine was regulated like tobacco is regulated,” she said.

Regulation to ban the import of non-nicotine vapes is set to go through parliament by the end of this year.

Mr Butler’s spokeswoman would not say when the bans would come into force.

“The Albanese Government is taking strong action to reduce smoking and stamp out vaping – particularly among young Australians – through stronger legislation, enforcement, education and support,” Mr Butler said.

Recent studies in New Zealand – where vaping is strictly regulated – has shown new restrictions have decreased the numbers of kids taking up the habit.

New Zealand’s laws include limits on nicotine levels, and from next year vapes cannot feature cartoon-like pictures.