Australia rejects One Nation proposal to cut cigarette taxes by 75%

The Australian government has rejected a proposal by the One Nation party to slash cigarette taxes by 75%. One Nation leader Pauline Hanson argued that high taxes have failed to curb the black market and are instead “underwriting organised crime” by driving consumers toward cheaper, illegal products.

Hanson’s proposal suggested a significant tax reduction and a three-year freeze on price indexation to undercut illicit supply networks. However, government officials, including Assistant Treasurer Daniel Mulino and Health Minister Mark Butler, have maintained that the solution lies in intensified enforcement rather than price competition with criminal syndicates.

Australia has seen a rise in illegal nicotine consumption, with estimates suggesting that as much as 80% of nicotine consumption in 2025 was illegal. High legal prices, which can reach A$60 per pack, have contributed to gang wars over the control of lucrative contraband markets. While some state leaders have voiced support for reviewing tobacco taxes, the federal Labor position remains focused on coordinated enforcement to tackle the entrenched organized crime involved in the illicit trade.