New laws aim to make black market tobacco easier to prosecute

The Australian government is set to introduce new legislation aimed at cracking down on the illicit tobacco trade, particularly involving organized crime. The proposed changes, which will be revealed on Thursday, target distributors and retailers selling illegal cigarettes as well as organized criminals importing black market tobacco.

These new offences would allow authorities to prosecute individuals based on factors such as suspiciously low prices, non-compliant packaging, or concealed products, making it easier to identify and seize illicit tobacco.

Assistant Minister for Customs Julian Hill emphasized that the current laws were outdated and targeted low-level criminals. He stated that the new legislation would focus on serious criminals and make it easier for law enforcement to take action against retail premises in possession of illegal tobacco. Commonwealth laws would cover companies involved in the illicit trade, including tobacconists and warehouse or distribution companies.

The proposed bill would create separate offences for the importation of tobacco and its possession or movement within Australia. Prosecutors would be able to rely on indicators such as cigarettes being sold for less than the value of excise and GST for legal products, the absence of documentation regarding the product's origin, or the presence of non-compliant products like cigarettes not meeting Australia's plain-packaging rules or containing banned flavors.

The bill would also strengthen proceeds of crime laws, making it easier to strip criminals of the profits generated through illegal tobacco sales. Assistant Minister Hill emphasized that such prosecutions would target not only the individuals involved but also their assets, including cash, cars, houses, boats, and toys.

Health Minister Mark Butler acknowledged that while prosecutions would occur, the most effective strategy would be to take away the criminals' financial gains. He also noted that the government was open to other sensible ideas to combat organized crime, while ensuring that the primary focus remained on public health.