Australia introduces new laws to combat illegal tobacco trade

The Australian Labor government has introduced legislation to amend the Customs Act and the Proceeds of Crime Act, aiming to strengthen law enforcement's ability to combat the illegal tobacco trade. The new laws seek to empower the Australian Border Force and state and territory police to disrupt organized crime by making it easier to detect and investigate illicit activity.

Under previous regulations, authorities often had to prove tobacco was imported with the specific intent to defraud revenue. The proposed changes introduce ‘observable indicators’—such as non-compliant packaging, concealed products, or sales prices below the combined excise and GST—to satisfy the reasonable suspicion test for offenses. This allows for easier seizure and destruction of illegal products.

Political parties have offered differing approaches to the issue. Labor is focusing on regulatory crackdowns while maintaining current excise levels. The Coalition proposes an 80 percent cut to the tobacco excise alongside a $200 million police crackdown on illegal networks. One Nation has suggested a 75 percent excise cut paired with tougher action against organized crime, while the Greens oppose any excise cuts.