Back to today’s briefing

Story perspectives

Lower Tobacco Excise Risks Worsening Illegal Sales, Study Warns

12/11/2025

37 7 Full Breakdown

Summary

Story summary

The e61 Institute finds reducing tobacco excise may not lure smokers back to legal cigarettes.
The research suggests lower excise could worsen the budget deficit from illicit tobacco.
Australia’s tobacco excise revenue fell from $16.3 billion in 2019-20 to $7.8 billion, with illegal sales accounting for about 25% of all cigarette sales.
NSW Premier Chris Minns says high excise rates fuel illegal tobacco and urges a policy review.

1 of 1

Story summary

The e61 Institute finds reducing tobacco excise may not lure smokers back to legal cigarettes.
The research suggests lower excise could worsen the budget deficit from illicit tobacco.
Australia’s tobacco excise revenue fell from $16.3 billion in 2019-20 to $7.8 billion, with illegal sales accounting for about 25% of all cigarette sales.
NSW Premier Chris Minns says high excise rates fuel illegal tobacco and urges a policy review.