Australia Plans to Increase Penalties for Illegal Tobacco and E-cigarette Crimes

According to ABC News, the Australian government plans to introduce a new round of measures to combat the illicit tobacco market, including increasing penalties for crimes related to illicit tobacco and e-cigarettes, expanding police wiretapping powers, and strengthening asset forfeiture powers to combat related organized crime networks.

Australian Assistant Minister for Customs Julian Hill stated that the reforms propose elevating tobacco violations to "serious crimes" and increasing the maximum imprisonment sentence to two or three times the current level, while allowing police to seize assets related to "unexplained wealth" of criminals, such as cars, boats, and homes.

The 2024-25 Illicit Tobacco and E-cigarette Commissioner's Report states that more than half of the tobacco products currently sold in Australia are illicit; approximately 95.7% of e-cigarette products are also illegal, with a market value of approximately AUD 1.6 billion (approximately USD 1.088 billion, based on an exchange rate of 1 AUD = 0.68 USD).

During the same period, organized crime groups profited approximately A$4.1 billion to A$6.9 billion (US$2.788 billion to US$4.692 billion) from related trade, while the government lost approximately A$7.7 billion to A$11.8 billion (US$5.236 billion to US$8.024 billion) in GST revenue.

The Australian government also stated that, in addition to border interception, subsequent enforcement priorities will include closing illegal shops, cracking down on online sales, and addressing the illegal importation, advertising, and supply growth of nicotine bags.

Draft legislation with stricter laws and heavier penalties is expected to be released when Parliament reconvenes next week.