Leading public health experts, the Australian Medical Association and Labor, have rejected Angus Taylor’s plan to cut tobacco excise by 80%, labeling the move to curb soaring illegal cigarette sales as a backward step on tobacco control.
Coalition's Proposal
On Thursday, Angus Taylor, along with Nationals leader Matt Canavan, announced plans for an 80% cut to tobacco excise, as well as moves to legalize and regulate vapes and nicotine pouches. This announcement follows a proposal by One Nation leader Pauline Hanson for a 75% cut. Taylor argued that the cut would reduce the excise on a standard packet of 20 cigarettes from about $30 to about $6, claiming it would undermine illicit tobacco dealers, who control more than half of all sales in Australia.
A Coalition government would allocate $200 million towards law enforcement efforts against illicit sales, increasing funding for the Australian Border Force, federal police, and other agencies. Taylor stated:
“"You don’t bring organized crime to its knees by protecting its business model. You have to destroy the business model, and that’s what the Coalition’s policy will do."
Taylor also mentioned that Parliamentary Budget Office modeling indicated the plan could add about $8 billion in revenue to the budget over four years, including from excise on pouches and vapes.
Opposition from Labor and Health Experts
Labor has resisted calls to cut the excise rate, arguing that there is no clear price point that would reverse the boom in hidden market sales. Benn McGrady, a World Health Organization expert, emphasized that the WHO recommends raising taxes on tobacco products to reduce demand and lower the burden of disease:
