‘Australia’s Tobacco Policy Has Failed’: Opposition Leader Unveils Controversial Plan to Legalise Vapes and Slash Excise to Combat Black Market
- Opposition Leader Angus Taylor claims Australia’s current tobacco policy is fuelling organised crime on a scale that should deeply concern the nation
- Australia’s growing black market trade is being driven by cheap illegal cigarettes, with packets available for as little as $10
- The opposition has proposed a plan to legalise vapes and nicotine pouches, while cutting the tobacco excise by 80 per cent to combat the black market
- Public health experts have warned that expanding access to vapes could reverse Australia’s long-term decline in smoking
Australia’s tobacco policy has been branded a failure by Opposition Leader Angus Taylor, who claims it’s fuelling a national organised crime crisis.
In a bid to combat the growing black market trade, the opposition has unveiled a controversial plan to legalise vapes and nicotine pouches, while cutting the tobacco excise by a staggering 80 per cent.
Taylor defended the policy on Sunrise, arguing that illicit tobacco was funding a national organised crime crisis.
He acknowledged that cheap illegal cigarettes were already widely available across Australia for as little as $10 a packet, saying existing laws had failed to contain the black market.
“We need to destroy the business model.
We need to ensure we take away the profits, take away the customers and hit what is left with the full force of the law and that’s what this policy does,” he said.
The opposition’s plan also includes $200 million in joint support for federal and state operations targeting the illegal tobacco market.
Taylor maintained that competition would force tobacco companies and retailers to pass the excise savings on to consumers, despite no legal mechanism requiring them to reduce prices.
“The wonderful thing about competition is it passes on, it passes on the savings,” he said.
However, public health experts have warned that expanding access to vapes could reverse Australia’s long-term decline in smoking.
The proportion of Australians aged 14 and older who smoked daily dropped from 8.3 per cent in 2022-2023 to 5.6 per cent in 2025, according to the government’s National Drug Strategy Household Survey.
The Australian Criminal Intelligence Commission has linked competition for the illegal tobacco market to more than 200 firebombings, at least three deaths, and other violent attacks.
The scale of the black market was also examined in a recent Senate committee report, which cited experimental Australian Bureau of Statistics figures estimating illicit products accounted for 80 per cent of the nicotine consumed nationally in 2025.
Analysis: What This Means for Australia
The opposition’s plan to legalise vapes and slash the tobacco excise has sparked a heated debate about the impact on public health and organised crime. While Taylor argues that the policy will combat the black market and reduce crime, public health experts warn that it could have unintended consequences.
“The evidence suggests that expanding access to vapes could lead to an increase in smoking rates, particularly among young people,” said a public health expert.
Law enforcement insiders warn that the plan may not go far enough in addressing the root causes of organised crime.
“Reducing the excise on tobacco may reduce the incentive for criminal gangs to sell illicit cigarettes, but it won’t address the underlying issues driving the black market,” said a law enforcement source.
Industry observers believe that the plan could lead to a shift in the way tobacco products are sold and marketed in Australia.
“The legalisation of vapes and nicotine pouches could lead to a new era of tobacco products that are more appealing to young people,” said an industry insider.
As the debate continues, one thing is clear: Australia’s tobacco policy is in need of a radical overhaul.
The question is, will the opposition’s plan be enough to combat the black market and reduce crime, or will it have unintended consequences for public health?
tobacco policy organised crime public health Australian Bureau of Statistics