NSW Premier Chris Minns under fire after federal Treasurer Jim Chalmers rules out tobacco excise change

Illicit tobacco sales linked to organised crime are on the rise in one Australian state, but the Premier’s plea for change has come under fire.

NSW Opposition Leader Mark Speakman has slammed suggestions by Premier Chris Minns that the tobacco excise could be slashed to make cigarettes cheaper as the state grapples with a boom in illicit sales connected to organised crime.

Mr Minns this week called on the federal government to re-evaluate the excise amid concerns about the dramatic increase in under-the-counter cigarette sales and the number of tobacco stores, which ballooned in 2024 to 19,500.

The suggestion set off a new confrontation between the Labor government and the Liberal-National Coalition, who are simultaneously fighting to stop controversial workers compensation laws being passed as is in parliament on Thursday.

Mr Speakman accused Mr Minns of having allowed NSW to become the “chop-chop capital” of Australia, and his plan would not work after Treasurer Jim Chalmers ruled out any change to the tobacco excise on Wednesday.

NSW Premier Chris Minns called on the federal government to re-examine the tobacco excise. Picture: NewsWire/ Gaye Gerard

“Illegal tobacco businesses have exploded under Chris Minns, and organised criminal gangs are raking in big money because they know NSW has minimal enforcement and some of the weakest penalties in the country,” he said.

“While other states have acted to drastically increase penalties and improve enforcement, Chris Minns has been missing in action.

“Now that the federal Treasurer has ruled out changes to the federal excise, Chris Minns needs to tell people how he is going to tackle this issue.”

One key sticking point for the Coalition is the role of police.

Mr Speakman would not say on Wednesday whether he believed the tobacco crisis was a NSW Police issue, rather than NSW Health one, after Mr Minns suggested police resources might have to be reallocated to combat the trade.

NSW Police Minister Yasmin Catley erupted in parliament on Wednesday. Photo: NewsWire/ Gaye Gerard

Opposition police spokesman Paul Toole said police were being called in as the last line of defence to “pick up the slack” from NSW Health, which it was revealed had only about 30 inspectors for tobacco stores across NSW.

“The NSW Labor government is treating the NSW Police Force like a dogsbody to pick up the pieces after other agencies fail to do their job,” he said.

“The NSW Police Force is stretched paper thin and passing the buck to the police cannot be this government’s answer to every issue.”

Police Minister Yasmin Catley erupted on Wednesday during question time in parliament after she was asked by Mr Speakman whether she would “expand the remit of Taskforce Falcon to disrupt criminal gangs involved in illegal tobacco?”

The taskforce was established last month to oversee gang-related shootings, kidnappings, and arson attacks, with Ms Catley telling Mr Speakman that he “knows that” NSW Health is responsible for enforcement.

NSW Opposition Leader Mark Speakman has slammed Mr Minns over his excise comments. Picture: NewsWire/ Gaye Gerard

“He has come in here and has the audacity to come in here and say the police are not doing their job,” she said.

“Well shame on you. Shame on you.

“NSW Police are doing absolutely everything they can and I am disgusted that the leader of the opposition could come to the NSW parliament and suggest otherwise.”

Regulations around tobacco sales in NSW will change from July 1 when NSW Health will require businesses to “seek permission” for a tobacco licence that could then be refused or revoked.
A parliamentary inquiry into the illicit tobacco trade in NSW was also approved earlier this year with support from the Coalition. It is taking submissions, with the first hearings expected later this year.

Originally published as NSW Premier Chris Minns under fire after federal Treasurer Jim Chalmers rules out tobacco excise change