Australian smokers face high costs and a growing black market for tobacco

Australia's cigarette excise increase makes legal cigarettes the world's most expensive, costing smokers over $14,600 annually. The 2% excise rise, effective March 2026, adds to the significant tax burden, pushing the cost of a pack to $40-$50. This policy has driven many to the black market. Illicit tobacco sales are booming, fueling organized crime and violence, while federal revenue from excise taxes has drastically declined.