Australia already had laws and enforcement against illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56, but the market continued to grow and criminal groups expanded their profits and reach despite earlier legislative changes. A 16-tonne seizure in March 2025 and the Commissioner’s December 2025 estimate of a $4.1–$6.9 billion market sharpened the pressure; the government announced tougher action, Julian Hill MP introduced the bill, and June 2026 reporting put illegal tobacco at 80 per cent of consumption, prompting higher penalties and expanded investigative and proceeds-of-crime powers.
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13 Mar 2025
Authorities seize and destroy 16 tonnes of illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56
The seizure in Victoria represented nearly $35 million in avoided tobacco excise and showed the scale of the illegal market.
Australian Border Force ↗
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10 Dec 2025
Commissioner report values the illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market at $4.1–$6.9 billion
The report called for stronger consequences, better multi-agency capability, unified information and data, and demand reduction.
Combatting Illicit Tobacco explanatory memorandum ↗
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19 Mar 2026
Government announces tougher illicit-tobacco laws
The announced crackdown proposed tougher penalties, new offences and expanded police powers as black-market tobacco and vape sales surged.
ABC News ↗
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26 Mar 2026
Julian Hill MP introduces the bill
The bill proposed higher penalties for illicit-tobacco offending and expanded investigation, asset-confiscation and information-sharing powers.
Parliamentary timeline ↗
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03 June 2026
ABS estimates 80 per cent of tobacco consumed was illegal
The estimate showed the black market was undermining tobacco-excise revenue, which Treasury had downgraded by $8 billion over five years.
ABC News ↗