The Australian government is introducing new laws to federal parliament designed to significantly curb the influx of illegal tobacco, often referred to as 'chop shop' tobacco. The proposed legislation will revise customs regulations, making it simpler for authorities to seize contraband cigarettes.
Under the updated rules, authorities will no longer need to prove that illicit tobacco was knowingly imported illegally. Instead, cigarettes being sold below the combined excise and Goods and Services Tax (GST) amounts, those in non-standard packaging, or concealed products will be sufficient grounds for seizure and charges.
Assistant Customs Minister Julian Hill stated that the reforms are intended to modernize customs procedures and provide law enforcement with more effective tools. "It'll give powerful new tools to border force, but every state and territory police force to go after the crooks," Hill told ABC Radio. He described the illicit tobacco trade as a "major global problem" fueled by organized criminal syndicates exploiting cheap production to flood national borders with products sold for less than $1 per pack.
These legislative changes follow political discussions surrounding tobacco excise rates. The coalition had previously pledged to cut the tobacco excise by 80 percent, while One Nation proposed a 75 percent reduction, as a means to combat the rise of illegal cigarettes.
The issue of tobacco taxation has been contentious, with some critics attributing a government increase of the tobacco excise by 34 percent since 2022 to the growth of the black market and a series of fire bombings targeting tobacco and vape retailers. Prime Minister Anthony Albanese acknowledged the issue on Wednesday, indicating a possibility of cutting the tobacco excise, but also stressed that making legal tobacco and vapes more affordable was not the solution and that state governments bear responsibility for cracking down on illegal sales.
Estimates from the Australian Bureau of Statistics indicate a dramatic surge in illicit tobacco consumption, rising from 12 percent in 2017 to approximately 80 percent of all tobacco consumed in 2025. Concurrently, the tobacco excise has more than tripled.
Assistant Minister Hill expressed confidence in securing parliamentary support for the customs reforms, noting they represent powers long sought by law enforcement officials. "The way to really hurt these crooks is to go after their cash and their houses and their boats and their cars and their toys and take the profits of their crime off them," he said.