Australia's tobacco tax rises again as smokers shift to illegal market

Australia has increased tobacco tax again, effective September 1, pushing the tax alone above $31 for a standard 20-pack and raising the starting retail price to about $40 per pack. The 1.6 per cent rise, applied twice yearly in March and September, adds $1.55 tax per cigarette. Authorities are battling a booming illegal tobacco trade, with 34 per cent of smokers reporting recent illicit use in 2025, up from 16.7 per cent in 2022–23. Buying habits have shifted, with 47 per cent of tobacco buyers now using tobacconists versus 19 per cent at supermarkets, reversing 2013 trends. The Coalition proposes an 80 per cent excise cut to lower legal packs to roughly $8, aiming to undermine black market sales.