Big tobacco is back in town as cigarette tax fight lights up Australian politics
The industry has been pushing for cuts to excise for decades. With the explosion in illegal cigarette sales, those calls have grown louder Get our breaking news email , free app or daily news podcast Anti-smoking campaigners had been on the lookout for weeks. While in Canberra for hearings about the booming illicit trade in Australia in May, longtime observers of the tobacco industry suspected…
Big tobacco companies have been demanding significant reductions in cigarette excise taxes for many years. This push has intensified due to the surge in illegal cigarette sales, which now make up approximately 80% of tobacco consumption in Australia. Anti-smoking advocates have been monitoring the situation closely, noting the industry's attempts to influence events behind the scenes during hearings in Canberra in May.
A significant development occurred when executives from Philip Morris were invited to a private hearing at Parliament House, orchestrated by the Liberal Leah Blyth-led committee—a departure from the usual transparent process followed by Australian policymakers. This move has reignited debates about tobacco industry influence, particularly as the political landscape ahead of the next election may hinge on the issue.
The opposition leader, Angus Taylor, recently offered a more aggressive proposal, advocating for an 80% cut in tobacco excise, surpassing the proposed 75% reduction by Pauline Hanson. The Coalition has also pledged $200 million for enhanced law enforcement against organized crime linked to tobacco. Big tobacco companies have long sought to weaken excise taxes, which are used to discourage smoking.
However, they face stricter plain packaging regulations and are now seeing an opportunity to push their agenda. Experts warn that the industry is employing various tactics, including political donations, well-connected lobbyists, and third-party groups, to sway government policies. Two of the world's largest tobacco companies continue to donate to the Nationals, a party that still accepts such contributions.
While the Liberals ceased accepting tobacco donations in 2013, the Nationals received $225,500 from two large manufacturers in 2024-25. The party denies any influence from these donations on their policies regarding vaping. Tobacco lobbyists have been secretive about their activities, with recent revelations showing that a significant portion of former industry insiders hold positions in government.
This trend of increased industry visibility and engagement in policy debates marks a notable shift in their approach over the past decade.
Written by urgent.news from The Guardian Australia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
