How smoking makes Australians poorer – and what we can do about it
A new study suggests making cigarettes cheaper would risk making smoking-related poverty in Australia worse overall, given it could lead to more people smoking.
Australia's cigarette prices are among the highest in the world, costing around A$7,000 to $12,000 annually for someone who smokes half a pack a day. This high cost is due to significant tobacco taxes, which have been increasing since 2010. Critics argue that these taxes impose an unfair burden on low-income households, contributing to a growing illegal market.
Our study, published in the journal Addiction, found that spending on cigarettes can lead to "smoking-induced deprivation," where people can't afford essentials like food or rent because they're spending all their money on cigarettes. We analyzed data from 26,888 smokers across Australia, England, Canada, and the US between 2016 and 2024, and found that the proportion of smokers experiencing this deprivation had increased in all four countries.
In Australia, cigarette prices are 1.81 times higher than they were in 2016. Despite this, the overall rate of smoking has decreased from 15.6% of Australian adults in 2016 to 8.2% in 2025. This means fewer people are at risk of smoking-induced deprivation.
However, quitting smoking can be challenging for those experiencing financial hardship. They tend to be more addicted and less confident in their ability to quit. If tobacco taxes were reduced, it could increase smoking rates and make it harder for people to quit. Instead, the Australian government could use the estimated $3.56 billion from tobacco tax revenue to support smoking cessation, expand behavioral support, and address illegal tobacco sales.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
