Federal budget 2023: Scourge of vaping loses out on bulk of tobacco hike
Less than a quarter of new tobacco tax allocated for anti-smoking and vaping response, no new enforcement money, as government pockets cigarette tax increase.
The government has allocated less than a quarter of the money it expects to raise through new tobacco taxes to tackle smoking and the vaping epidemic.
The budget figures show the government expects to raise $3.33bn over four years by hiking the tax on cigarettes by 15 per cent, and more heavily taxing other products such as roll-your-own tobacco.
But only $737m – around 22 per cent of the additional tax take – has so far been allocated to programs aimed at reducing levels of smoking and vaping in the community.
And there is no specific line item in the budget for increased revenue for the Australian Border Force and the Therapeutic Goods Administration, the two federal agencies that will bear the brunt of enforcing the government’s planned ban on vapes.
The tax increases, which come on top of regular indexation, will apply from September 1, with Health Minister Mark Butler saying an expensive cigarette was an unattractive cigarette, and price hikes were a known way of encouraging people to give up smoking.
But there is no date set for vapes to be banned, with an agreement required with the states and territories.
Mr Butler has promised to adequately fund the Australian Border Force and the TGA once the bans come into force at a yet-to-be-determined date. “A national approach for the regulation and enforcement of vaping needs to be agreed with states and territories,’’ a spokeswoman for Mr Butler said.
“This work is underway. States and territories will have a strong role in enforcement.
“Once the details of the approach have been confirmed, the resourcing needs of different agencies will be clearer.
“At the commonwealth level, we recognise additional resourcing will be required for the Therapeutic Goods Administration and the Australian Border Force.
“There is a commitment from the government to properly fund these activities from changes to the tobacco excise.’’
The government also appears to be expecting a further crackdown on the highly lucrative illicit tobacco black market.
“The government will expand compliance activity to address illicit tobacco and work with relevant agencies and state and territory governments to develop an appropriate multi-jurisdictional approach,’’ the budget papers say.
Illicit tobacco taskforces comprising ABF, state and territory police, Australian Border Force and other agencies such as the ACIC and ATO already exist, and there has been speculation they could be expanded to take on the organised crime gangs thought to be behind smuggling a large number of illegal nicotine-laced vapes into Australia.
The budget includes $263m to establish a national lung screening program.
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