The Australian government has announced an additional $156.7 million in funding to combat the illicit tobacco trade, a market that law enforcement agencies describe as “relentless” and increasingly tied to organised crime.
According to ABC News, the funding will be distributed across agencies such as the Australian Federal Police (AFP), Australian Border Force (ABF), the Australian Criminal Intelligence Commission (ACIC), and other government bodies, aiming to disrupt illegal sales and dismantle criminal networks.
The announcement was made by Health Minister Mark Butler in Melbourne, from a warehouse filled with illicit cigarettes seized by ABF, a setting that underscores the scale and persistence of the issue.
While authorities have made progress in curbing illegal tobacco operations, criminal groups continue to exploit gaps in enforcement, requiring stronger measures to counter their activities.
The Scope of the Illicit Tobacco Problem
The illicit tobacco trade in Australia has grown into a major criminal enterprise, with organised crime groups using it as a revenue stream to fund activities such as drug and human trafficking.
The issue has been particularly severe in Melbourne, where dozens of tobacco stores have been firebombed in conflicts between rival gangs. One such attack resulted in the tragic death of an innocent woman, highlighting the extreme violence linked to the trade.
According to Health Minister Mark Butler, the illegal market is undermining public health efforts by making cigarettes cheaper and more accessible. The government imposes a 70% tax on legal cigarettes, aligning with the World Health Organization’s recommendations, but illicit sellers evade these taxes, enabling them to sell tobacco at significantly lower prices.
Butler emphasised that “illegal cigarettes undermine our efforts in two ways—providing cheap cigarettes to Australian smokers, but they also provide an extraordinary source of revenue to some of the worst criminal gangs.
Revenue that those gangs then use to finance their criminal activities like drug trafficking, sex trafficking and more.”
Federal Response and Law Enforcement Efforts
Minister Mark Butler stressed the scale of the government’s response, highlighting that Australian Border Force (ABF) seized 1.3 billion illegal cigarettes in just six months, a staggering amount that demonstrates the persistence of the trade.
He stated that ABF is also cooperating with international agencies to prevent illegal tobacco shipments from reaching Australia in the first place. This international effort aims to intercept illicit cigarettes before they leave their source countries, disrupting the supply chain at its origin.
The additional funding will be used to enhance intelligence-sharing between state and federal agencies, strengthen enforcement actions, and support prosecution efforts against criminal networks involved in the trade. The government aims to send a strong message to offenders, reinforcing that they will face prosecution and asset confiscation.
We’re going to track you down, we’re going to put you in the dock, and we’re going to confiscate your criminal profits – Butler warned.
State-Level Actions and Regulatory Changes
The Victorian government is introducing a tobacco licensing scheme, which would penalise unlicensed sellers with fines of up to $355,000 or jail sentences of up to 15 years. This initiative is part of a broader effort to tighten regulations and disrupt illicit supply chains.
Minister Butler also acknowledged that organised criminal groups involved in illicit tobacco sales have expanded beyond Melbourne to operate nationwide, requiring better intelligence-sharing between state and territory governments.
This national expansion has made it increasingly difficult to contain the problem, as gangs adapt and shift operations across jurisdictions.
The federal government’s approach also includes public awareness campaigns to discourage consumers from purchasing illicit tobacco, highlighting its direct role in funding criminal enterprises.
Butler reminded business owners that every sale of illegal cigarettes contributes to the criminal underworld, warning that these transactions fuel wider illegal activities.
