Labor will table legislation to create tougher federal offences for illicit tobacco enforcement.
Why it matters: The change could make it easier for authorities to prosecute more of the supply chain, not just importers, while helping reduce excise losses and the retail violence linked to the black market.
- Assistant Minister Julian Hill was set to introduce the legislation in federal parliament on Sept. 10, 2026.
- The proposed laws would create separate offences for importing tobacco and for possessing or moving it within Australia.
- Prosecutors could rely on indicators such as suspiciously low prices, non-compliant packaging and missing documentation.
- The government wants to target organised criminals, distributors, warehouse operators, retailers and premises selling illegal cigarettes.
Labor is moving to toughen federal enforcement against illicit tobacco, with new laws designed to make criminal prosecutions easier across the supply chain. The plan would create separate offences for importing tobacco and for possessing or moving it inside Australia, while allowing prosecutors to point to observable signs of illegality such as low prices, packaging that does not comply and missing paperwork, according to ABC News.
The government says the target is broader than importers alone. It wants to pursue organised criminals, distributors, warehouse operators, retailers and premises selling illegal cigarettes.
The policy push comes as crime agencies and parliamentary material describe illicit tobacco as a major organised-crime commodity. The Australian Criminal Intelligence Commission says the black market has been linked since 2023 to more than 200 fire bombings, at least 3 homicides and multiple non-fatal violent attacks in its report The price we pay.
The ACIC estimates illicit tobacco costs Australia about $4 billion a year. Parliamentary material says the illicit tobacco market was worth $4.1 billion to $6.9 billion in 2024-25 and caused excise losses of $7.7 billion to $11.8 billion. The Parliamentary Library says criminal syndicates play a large role in the trade and notes the bill also aims to strengthen proceeds-of-crime powers in its briefing Combatting Illicit Tobacco Bill 2026.
Australia has already committed more than $365 million since early 2024 to fight illegal tobacco, with about $98 million flowing to states and territories, Health Minister Mark Butler said at a July 17, 2026 press conference. The Australian Border Force said it disrupted around 27 tonnes from reaching Australia in the last year and seized more than 1,000 tonnes during Operation Printwall over four months, in an update that said the record seizures reflect intensified pressure on organised crime groups Record seizures highlight intensified crackdown on illicit tobacco.
By the numbers
- $4 billion - ACIC's estimate of illicit tobacco's annual cost to Australia.
- $7.7 billion to $11.8 billion - Parliamentary material's estimate of annual excise losses from the illicit market.
- More than 200 fire bombings - Violence linked to illicit tobacco since 2023, according to ACIC.
Yes, but: The exact bill title and final drafting were not confirmed in the material, so the new offences remain proposed until the legislation is formally tabled.
What's next: The legislation was due to be introduced in federal parliament on Sept. 10, 2026, after which it would face parliamentary scrutiny and possible amendment.