Combatting Illicit Tobacco

Current status

This bill is currently before Parliament.

Policy area

Health, care & disability

What does this bill do?

People who knowingly import illegal tobacco face up to 15 years in prison, up from 10 years.

Why was it introduced?

The government said the illegal tobacco market was worth between $4.1 billion and $6.9 billion in 2024–25 and was becoming more profitable for organised crime. Julian Hill (Labor), the minister introducing the bill, said smoking kills an average of 66 Australians each day and causes 20 per cent of the country’s cancer burden. He also said two in three long-term smokers will die from a tobacco-related illness. The government wants stronger penalties, better investigations and easier confiscation of criminal profits.

Broader context

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.

Key criticism

Alison Penfold (National Party) argued that higher maximum penalties would achieve little without stronger enforcement because courts already rarely use the existing maximums. She said the bill did not reconsider tobacco tax settings or provide significant new investment for border checks, domestic enforcement or disrupting supply chains. Leon Rebello (Liberal National Party) argued that high legal prices were pushing smokers towards illegal packets costing $10 to $20, compared with roughly $50 for legal cigarettes.

Who supported it?

Julian Hill MP introduced this bill. Supportive speeches so far have come from Labor, Liberal Party, LNP, some crossbench members.

Introduced in House 26 Mar 2026
Debate underway in House 22 June 2026
Not yet reached Senate
Not yet law

Did it become law?

Not yet

Final passage

No final vote yet

The bill has not yet completed passage through Parliament.

Days since introduction

134 days

Updated 07 Aug 2026.

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. People who knowingly import illegal tobacco face up to 15 years in prison, up from 10 years. Reckless importing rises from five to 10 years.

  2. People who sell or supply at least 10 kilograms of suspected untaxed tobacco face up to three years in prison.

  3. People who illegally manufacture or produce at least 10 kilograms of tobacco face up to five years in prison.

  4. People holding at least two kilograms of tobacco without required records face a civil fine of 2,000 penalty units.

  5. Police investigating specified serious tobacco offences can seek warrants to intercept calls and messages or access stored communications.

  6. People suspected of carrying crime-linked property can be searched under a warrant. The warrant can cover property expected within 72 hours.

  7. Courts can restrict publication of asset-freezing cases to protect investigations, prosecutions or personal safety.

Show source excerpts
  1. Customs Act 1901 1 Subsection 233BABAD(4) Omit “10 years”, substitute “15 years”. 2 Subsection 233BABAD(4A) Omit “5 years”, substitute “10 years”.
    Combatting Illicit Tobacco introduced text
  2. 71 After section 308‑30 in Schedule 1 308‑33 Sale or supply of tobacco (10 kilograms or above)—reasonable suspicion offence (1) A person commits an offence if: (a) the person sells or supplies a thing; and (b) the thing is tobacco (other than tobacco seed or tobacco plant); and (c) the tobacco is in Australia but not in an external Territory; and (d) it is reasonable to suspect that none of the following circumstances exist: (i) *excise duty has been paid on the tobacco; (ii) *customs duty has been paid on the tobacco; (iii) excise duty is not payable on the tobacco because of an exem
    Combatting Illicit Tobacco introduced text
  3. 110 After section 308‑130 in Schedule 1 308‑133 Manufacture or production of tobacco (10 kg or above)—fault‑based offence (1) A person commits an offence if: (a) the person manufactures or produces a thing; and (b) the thing is tobacco; and (c) the place in which the person manufactures or produces the tobacco is in Australia but not in an external Territory; and (d) the tobacco is: (i) *excisable goods; or (ii) tobacco seed or tobacco plant; or (iii) tobacco leaf that has not been subjected to any process, or has been subjected only to the process of curing the leaf as stripped from
    Combatting Illicit Tobacco introduced text
  4. This item amends subsection 295-75(3) in Schedule 1 to the TAA 1953 to increase the civil penalty amount to 2,000 penalty units if a person is in possession of tobacco that equals or exceeds 2kg without required documentation. The increase in this penalty is appropriate noting the serious harm caused by illicit tobacco and to align the civil penalty with increases to criminal penalties in this Bill. The civil penalty is intentionally lower than the penalty for criminal offences for illicit tobacco in the TAA 1953 to reflect the lower burden of proof for civil penalty proceedings.
    Combatting Illicit Tobacco explanatory memorandum
  5. Item 1 would insert new subsections 5D(5AA), 5D(5AB) and 5D(5AC) which would amend the definition of a ‘serious offence’ in section 5D of the TIA Act. The amendment would permit agencies to apply for warrants authorising the interception of telecommunications and access to stored communications, in order to obtain information that may be likely to assist in the investigation of an offence under those subsections. New subsection 5D(5AA) would update the definition of ‘serious offence’ to include offences in subsections 233BABAD(1), 233BABAD(2), 233BABAD(2A) and 233BABAD(2B) of the Customs Act.
    Combatting Illicit Tobacco explanatory memorandum
  6. 18 After subsection 225(1) Search warrant relating to a person (1A) A magistrate may issue a warrant authorising an *ordinary search or a *frisk search of a person if the magistrate is satisfied, by information on oath or affirmation, that there are reasonable grounds for suspecting that the person: (a) has in the person’s possession; or (b) will within the next 72 hours have in the person’s possession; any *tainted property or *evidential material.
    Combatting Illicit Tobacco introduced text
  7. 2 Subsections 28A(1) and (2) Repeal the subsections, substitute: (1) This section applies if a *proceeds of crime authority applies to a court for a *restraining order. (2) The court may make an order under subsection (2A) if the court considers it appropriate in order to: (a) protect the integrity of any investigation or prosecution; or (b) prevent prejudice to the administration of justice; or (c) protect the safety of any person; or (d) avoid causing undue distress or embarrassment to a party to or witness in a proceeding involving an offence of a sexual nature (including an act of i
    Combatting Illicit Tobacco introduced text

Broader context for this bill

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.

  1. 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 ↗
  2. 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 ↗
  3. 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 ↗
  4. 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 ↗
  5. 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 ↗

How did it move through Parliament?

House Senate
Introduced 26 Mar 2026

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 26 Mar 2026

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Scrutiny of Bills review 06 May 2026

Considered by scrutiny committee (06/05/2026): Senate Standing Committee for the Scrutiny of Bills; Scrutiny Digest 6 of 2026

Scrutiny Digest 6 of 2026

APH bill page notes
Human Rights review 07 May 2026

Considered by scrutiny committee (07/05/2026): Parliamentary Joint Committee on Human Rights; Report 5 of 2026

Report 5 of 2026

APH bill page notes
Second reading debate 14 May 2026

The bill reached this recorded parliamentary step.

Second reading debate 04 June 2026

The bill reached this recorded parliamentary step.

Second reading debate 22 June 2026

The bill reached this recorded parliamentary step.

The main case against this bill

Alison Penfold (National Party) argued that higher maximum penalties would achieve little without stronger enforcement because courts already rarely use the existing maximums. She said the bill did not reconsider tobacco tax settings or provide significant new investment for border checks, domestic enforcement or disrupting supply chains. Leon Rebello (Liberal National Party) argued that high legal prices were pushing smokers towards illegal packets costing $10 to $20, compared with roughly $50 for legal cigarettes.

Penfold still supported the bill and backed stronger penalties and action against criminal profits. The government said the bill was one part of broader work with states and territories, designed to make illegal tobacco less profitable and riskier for organised crime.

Too narrow to curb the black market

Critics warned that stronger offences and penalties would be only a partial response unless paired with a comprehensive national strategy, including consideration of how tobacco excise settings encourage illicit trade.

Raised by Mary Aldred, Andrew Hastie and Aaron Violi Source ↗

Enforcement and coordination gaps

The new laws may have limited effect without enough enforcement resources, effective federal-state coordination and additional practical tools for agencies tackling illicit supply chains.

Raised by Andrew Hastie, Jason Wood and Monique Ryan Source ↗

Privacy and coercive powers

Expanded interception, device-search and technical-assistance powers raised privacy concerns, with a call for strong safeguards and continuing scrutiny of how those powers are used.

Raised by Tom French Source ↗

Recorded votes

No recorded votes have been found yet for this bill.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Julian Hill

Australian Labor Party • MP 26 Mar 2026

Hill supports the bill as a critical response to organised illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 crime, arguing that tougher penalties, stronger investigative powers and expanded proceeds-of-crime measures will deter offenders and strip them of illegal profits.

Read in Hansard ↗
Lead opposing voice Opposes

Pat Conaghan

National Party • MP 22 June 2026

Conaghan opposes the bill in its current form, arguing that tougher penalties will not disrupt organised crime without stronger enforcement, more resources and changes to tobacco excise.

Read in Hansard ↗
Lead supporting voice Supports

Monique Ryan

Independent • MP 22 June 2026

Ryan supports the bill's stronger offences, penalties and law enforcement powers against illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56, but argues they need better enforcement resources and coordination to work.

Read in Hansard ↗
Lead non-major voice Supports

Allegra Spender

Independent • MP 22 June 2026

Spender supports the bill because its tougher penalties and expanded unexplained-wealth powers will deter organised crime and target its profits, but says enforcement alone is insufficient and calls for excise reform, stronger retail licensing, and better-resourced national enforcement.

Read in Hansard ↗

All speeches by bloc

Labor

17 speakers · 18 contributions · 17 support

  1. Tom French Tom French supports the bill as a necessary step to disrupt the illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market by increasing penalties, improving investigative powers and targeting criminal proceeds.
    “But this bill is a necessary step. It increases the penalties, improves investigative powers, strengthens the proceeds-of-crime laws, supports a more joined-up Commonwealth response and sends a clear message that the Commonwealth is not only concerned with packets being sold at the counter but is also concerned with the networks, the money and the structures behind the illicit trade, and that is the right approach. People in Moore are entitled to expect better, and I commend the bill to the House.”

    Australian Labor Party • MP • 14 May 2026

    Read the full speech in Hansard ↗
  2. Ash Ambihaipahar Ambihaipahar supports the bill as a measured response to organised crime and public health threats, arguing that stronger penalties, investigative powers and proceeds-of-crime measures will help disrupt the highly profitable illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 trade.
    “Smoking still kills, on average, 66 Australians every day and accounts for 20 per cent of the nation's cancer diagnoses. Two out of three long-term smokers will die of a tobacco related illness. This bill represents a measured, targeted and proportionate response to a growing national problem. It strengthens penalties, improves investigative powers, enhances proceeds-of-crime mechanisms and reinforces cooperation between governments and law enforcement agencies. Most importantly, it sends a very clear message that illicit tobacco crime will be treated with the seriousness it deserves.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  3. Matt Gregg Gregg supports the bill as an important step toward disrupting the illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 trade through stronger, nationally consistent laws, surveillance powers and penalties.
    “It is going to have to be complemented by reforms at state levels, reflecting those in South Australia and Queensland that deal with leases and things on the ground. This is part of the solution but not the entire solution. I think it is important that we all acknowledge that this isn't a package that will get the job done by itself, but it is an important piece of the puzzle. It would be a great shame if anyone in this chamber voted against it simply because it is not a package that gets the whole job done itself.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  4. Sarah Witty Witty supports the bill because it strengthens enforcement and proceeds-of-crime powers against illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 networks, protecting public health, community safety and honest businesses from organised crime.
    “I rise to speak in support of the Combatting Illicit Tobacco Bill 2026. This legislation responds to a problem that has changed rapidly in recent years. Illicit tobacco is no longer a problem on the edge of the economy; it has become tied to organised criminal activity, community safety concerns and growing risks to public health. Across the country, illegal tobacco products are being sold through unregulated networks with no oversight, no safety guards, no safety standards and no accountability for what these products actually contain. At the same time, criminal groups are making billions of dollars from the trade and using those profits to fund other serious criminal activities.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  5. Matt Thistlethwaite Matt Thistlethwaite strongly supports the bill as a necessary response to organised crime, arguing that tougher penalties, expanded investigative powers and stronger proceeds-of-crime measures will help shut illegal shops and strip tobacco syndicates of their profits.
    “This bill is a necessary, proportionate, evidence-based response to a rapidly growing organised crime threat. It strengthens penalties. It expands law enforcement powers. It ensures that the proceeds of crime regime can be used to seize the profits that drive this trade. It builds on our government's strong record of action: record funding for the Australian Border Force, the appointment of the first Illicit Tobacco and E-Cigarette Commissioner and unprecedented cooperation across jurisdictions. It sends a clear message to organised crime that the days of low risk and high reward are over. This parliament has a responsibility to protect communities, to uphold public safety and to ensure criminal syndicates cannot profit from harm. That's exactly what this bill delivers.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  6. Claire Clutterham Clutterham supports the bill because its tougher penalties, expanded investigative powers and stronger proceeds-of-crime measures will deter illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 offences, disrupt organised crime and recover criminal profits for the community.
    “I rise to speak in support of the Combatting Illicit Tobacco Bill 2026. There are two key purposes at the heart of this bill. Firstly, it seeks to reframe the risk-to-reward calculation for organised criminal actors by increasing penalties for offences to ensure they are commensurate with the harms caused by the illicit tobacco trade and, secondly, seeks to make the Proceeds of Crime regime more effective to pursue the confiscation of the proceeds, instruments and benefits of crime to undermine the profitability of the illicit tobacco market, which is the main motivation of organised crime.”

    Australian Labor Party • MP • 04 June 2026

    Read the full speech in Hansard ↗
  7. Tracey Roberts Roberts supports the bill because it strengthens penalties, investigative powers, proceeds-of-crime laws and agency cooperation to disrupt organised illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 networks, protect public health and support legitimate businesses.
    “Ultimately, this legislation is about protecting Australian communities. It is about protecting public health. It is about supporting legitimate businesses. And it is about ensuring organised crime groups do not continue profiting at the expense of community safety and wellbeing. The people of Pearce expect strong action against organised crime and stronger protections for local communities. This bill delivers important reforms to support that goal. I commend the bill to the House.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  8. Sharon Claydon Claydon supports the original, unamended bill because it strengthens enforcement against illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 and organised crime while protecting public health and legitimate retailers from an unfair illegal market.
    “I rise today in support of the original, unamended Combating Illicit Tobacco Bill 2026. In recent months, my office has heard from a growing number of people across Newcastle who are deeply concerned about the rise of illicit tobacco in our community. These are not abstract concerns. They're coming from local shop owners who are doing the right thing and struggling to compete with illegal operators. They're coming from families worried about the normalisation of cheap, unregulated cigarettes and they're coming from residents concerned about the organised crime that, too often, sits behind this black market. To those people who have taken the time to write or to call about this issue: I hear you, and this bill responds directly to your concerns.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  9. Jess Teesdale Teesdale strongly supports the bill because its tougher penalties, proceeds-of-crime powers and enforcement tools will disrupt organised crime, protect public health and support legitimate businesses.
    “For Bass, this is not theoretical. It's on our streets. It's in our suburbs. It's affecting our small businesses. It's threatening public health. It's helping organised crime profit from addiction. This bill stands up to that. It protects public health, it backs legitimate businesses and it strengthens enforcement. It upholds the rule of law, and it says that Australia will not surrender decades of tobacco control success to criminal syndicates. I commend this bill to the House.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  10. David Moncrieff David Moncrieff supports the bill as a necessary and proportionate response to illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56, arguing that higher penalties, stronger proceeds-of-crime powers and enhanced investigative tools will reduce criminal profits and protect public health and local communities.
    “The government's objective is clear: shut down illegal shops, choke off criminal money and make illicit tobacco unprofitable. This bill advances that objective through higher penalties, through stronger proceeds of crime powers and through enhanced investigative capabilities. Together, these measures rebalance the risk-reward equation that fuels the trade in illicit tobacco. I commend this bill to the House.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  11. Trish Cook Cook strongly supports the bill because it increases penalties, strengthens proceeds-of-crime enforcement and expands investigative powers to disrupt organised crime, protect legitimate small businesses and prevent illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 and vaping products from harming young people.
    “This bill addresses the crisis by fundamentally changing the business model of illicit tobacco through two key objectives. First, we are rebalancing the risk-to-reward calculation. For too long, the penalties for dealing in illicit tobacco were seen by criminals as a mere cost of doing business—quite affordable. If the fine is $50,000 but the profit is $500,000, the criminal will pay the fine with a smile. This bill ends that. We are raising offence penalties to match the actual severity of the harm caused, ensuring that the punishment is a genuine deterrent and not a line item in a ledger. Second, we are attacking the profit motive. By making the proceeds-of-crime regime more effective, we are going after the one thing that criminals care about: their money. We are expanding law enforcement powers to investigate and ensure that the consequences for criminal actors are swift, severe and financially ruinous.”

    Australian Labor Party • MP • 14 May 2026

    Read the full speech in Hansard ↗
  12. Susan Templeman Templeman supports the bill as a crucial response to the rapidly growing illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market, arguing that stronger penalties, expanded investigative powers and more effective seizure of criminal profits will disrupt organised crime and make the trade less profitable.
    “The Commonwealth funding to states and territories is now flowing, with $84 million extra to help put trained people on the ground, improve licensing and enable joint operations. AUSTRAC is working with the banks and service providers to shut down the money flows that keep illicit tobacco profitable. Hundreds of accounts have already been closed and payment systems stopped. This bill expands law enforcement powers to investigate illicit tobacco related offending and increases the consequences for criminal actors involved in the illicit tobacco market. It's a crucial step in addressing the rapidly expanding illicit market.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  13. Peter Khalil Peter Khalil supports the bill, arguing that tougher penalties and expanded law enforcement powers are needed to disrupt organised crime, reduce violence linked to illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 and protect legitimate businesses and communities.
    “By increasing the consequences for those dealing in the marketplace of illicit tobacco, we are further strengthening our ability to thwart the harms placed on our citizens, our shop owners, our businesses and our communities. Together, the reforms in this bill are aimed and will protect public health, support legitimate businesses and disrupt the organised crime networks that profit from the illicit tobacco trade. Our coordinated national response further ensures Australia remains safer, healthier and fairer for future generations to come. I commend this bill to the House.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  14. Ali France Ali France supports the bill because it will help disrupt organised crime by increasing penalties for large-scale illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 activity, targeting criminal profits and strengthening law enforcement powers.
    “I know that people in my community of Dickson are concerned about the proliferation of tobacco stores selling illicit tobacco and vapes. I too am concerned. Please know this government is doing everything it can with the states and territories to shut down the illicit tobacco and e-cigarette trade. This bill will disrupt and dismantle criminal syndicates, with tougher penalties and greater powers to detect and seize illicit tobacco and vaping products. I commend the bill to the House.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  15. Steve Georganas Georganas strongly supports the bill, arguing that tougher penalties, stronger enforcement powers and expanded proceeds-of-crime measures are urgently needed to disrupt organised crime, protect legitimate businesses and prevent illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 from undermining public health.
    “It would be a real shame if this bill was not supported by every member of parliament, because, as I said, it's not about ideology. It's not about politics. It is about shutting down illegal businesses, shutting down organised crime and ensuring that the number of people addicted to tobacco does not go up. That is our No. 1 priority here. That's why this government is focused and clear. These so-called tobacco wars are not just about illegal cigarettes; they're about human people and human lives. I commend the bill to the House.”

    Australian Labor Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  16. Matt Smith 2 contributions Smith supports the bill because it strengthens law enforcement powers, raises penalties and targets criminal profits while protecting children and legitimate small businesses from illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 operations.

    Hansard records 2 separate contributions by Matt Smith on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Australian Labor Party • MP • 22 June 2026

    Smith supports the bill because it strengthens law enforcement powers, raises penalties and targets criminal profits while protecting children and legitimate small businesses from illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 operations.

    “These are important steps. This is about keeping our children safe. This is about making sure that profits don't go into the wrong hands. This is about protecting small business. Illegal tobacco has no place in our community. I am pleased to commend the Combatting Illicit Tobacco Bill 2026 to the House.”
    Read this contribution in Hansard ↗

    Second reading speech Australian Labor Party • MP • 22 June 2026

    Matt Smith supports the bill because it strengthens law enforcement powers and penalties against organised crime in the illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market, while protecting legitimate small businesses.

    “This is not just a federal government thing. Local councils have a part to play; state governments have a part to play. In my own region, Leichhardt, right across the road from my house, an illegal tobacconist sprung up. The Cairns Regional Council acted and shut them down. They tried again and were shut down again. That shop is now a florist. I look forward to it opening; I look forward to buying flowers. It was a legal response to an illegal problem. That is what happens when all three levels of government take responsibility to deal with what this is—a criminal organisation, a response that is not appropriate in our cities and our towns, peddling wares that we know to be dangerous to our children. I am pleased to be able to commend this bill to the House. It is another example of what we're doing to stop crime in our community.”
    Read this contribution in Hansard ↗

Coalition

14 speakers · 16 contributions · 11 support · 1 oppose · 2 unclear

  1. Tim Wilson Wilson says the opposition supports the bill as a step towards curbing illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56, but considers its measures inadequate and blames the government's tobacco taxes and weak enforcement for encouraging organised crime, violence and lost revenue.
    “I want to start by saying that we support this legislation and the spirit in which it's achieved, but I also want to reflect on just how inadequate it truly is. Let's look at the reality. Under this government, there has been a thriving illicit tobacco market that has fed organised crime across Australia, and nowhere has it been more acute than in my home state of Victoria. Frankly, it's an absolute national disgrace that this crisis has allowed itself to get to this point. We have seen Australian small businesses firebombed by criminal gangs as part of a turf war over an illicit product, and this didn't come out of nowhere.”

    Liberal Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  2. Mary Aldred Mary Aldred says the coalition will support the bill, but argues it is too little too late because enforcement alone will not curb an illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market fuelled by high tobacco excise.
    “To the government: get on with your job and show some real leadership. The coalition will support this bill, but it is too little too late and does not deal with the real issues at hand.”

    Liberal Party • MP • 14 May 2026

    Read the full speech in Hansard ↗
  3. Ben Small Small welcomes the bill's stronger enforcement measures but argues they will not solve illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 sales unless the government sharply cuts tobacco excise to reduce the black market's price advantage.
    “Whilst stronger enforcement and the sorts of measures that are featured in this bill—including the increased appropriations to our enforcement agencies—are welcome, they're not going to fix the problem. That's where we need to be honest with the Australian people. They can see it happening around them every day. In my community, there have been a number of raids. Indeed, I met with the south-west police recently to discuss that. They have to admit that their resources are stretched. They are still trying to deal with all of the normal sorts of enforcement that, rightly, only the police can do. WA is a long way from Canberra, and so the AFP are also stretched in their resourcing presence in Western Australia, naturally focusing on Perth. My electorate is a couple of hours south of Perth, and the problems we've had with illegal tobacco have gone right down to the bottom of my electorate, in Margaret River, and further south to Augusta. So you're talking about dragging police away from the very serious sorts of enforcement they need to be doing. They should be getting after murder and violent crime. They should be chasing down child exploitation. They should be monitoring our road safety. They should be doing all of these things. The police have readily admitted to me that a focus on tobacco enforcement is not included in their workload—and I understand why. It's simply outside the scope of their normal responsibilities.”

    Liberal Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  4. Aaron Violi Violi says the coalition will support the bill because some action is better than none, but argues it is inadequate and will do little to disrupt the organised crime funded by illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56.
    “Like so many government bills, it has an impressive-sounding name—Combatting Illicit Tobacco Bill. Of course we want to combat illicit tobacco. The coalition are supporting this bill because something is better than nothing, but let's be up-front here. This is partial. It's inadequate. It is not going to make a significant difference to the illicit-tobacco crime crisis that we face. In fact, astonishingly, in the explanatory memorandum, the government's own words confirm that this is a wet lettuce. They say:”

    Liberal Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  5. Andrew Wallace Wallace says the coalition will support the bill because its stronger law enforcement, proceeds-of-crime and investigative powers should help disrupt organised crime.
    “For these reasons, the coalition will support the bill. Supporting the bill, however, does not mean ignoring its shortcomings. The reality is that much of this legislation focuses on increasing penalties on paper. The government talks big about stronger penalties, it talks big about longer prison terms, it talks big about larger fines, but penalties only matter if criminals believe that they will actually be caught. The central challenge is not simply the size of the penalty; the central challenge is enforcement. Courts already have significant penalties available to them, yet criminal organisations continue to operate because they do not fear being caught. That is why stronger enforcement must sit alongside stronger penalties. Without meaningful disruption, criminal organisations will simply adapt, and they will continue to operate.”

    Liberal National Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  6. Andrew Willcox Willcox says the coalition will support the bill because stronger enforcement tools are better than none, but argues it is an inadequate and belated response that fails to address tobacco excise, frontline enforcement, store closures and criminal asset confiscation.
    “However, the coalition will support the bill, because we believe some tools are better than none, but this government must implement a far more comprehensive strategy to restore the rule of law. A serious response to the crisis must move beyond paper penalties and focus on actual disruption, confiscation and closure. This government should coordinate with the states to introduce immediate nationwide store closures and lease termination provisions. If a business is caught selling illicit tobacco, authorities must have the power to padlock the doors, cut the utilities and cancel the commercial lease immediately. This government must make it physically and financially impossible for these illicit shopfronts to operate.”

    Liberal National Party • MP • 22 June 2026

    Read the full speech in Hansard ↗
  7. David Littleproud David Littleproud says he will support the bill but considers it superficial because tougher penalties alone will not curb organised crime without enforcement funding, lower tobacco excise and a regulated market for tobacco and vapes.
    “Thank you for the opportunity to speak on this bill. While I'll support the bill, I ask the government to please understand that the challenges that we are facing are far more significant than what this bill tries to address. Unless we have the courage to look that in the eye, face up to it and legislate for it, we'll be back here again, unfortunately, with even more perverse outcomes.”

    National Party • MP • 22 June 2026

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  8. Anne Webster Anne Webster supports giving agencies stronger powers and penalties to combat illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56, but says the bill is too little and too late because Labor's tax and regulatory policies helped drive consumers into a violent criminal market.
    “I rise to speak on the Combatting Illicit Tobacco Bill 2026. This bill is before the House because Australia is no longer dealing with a small compliance problem. Under Labor we are dealing with a black-market crisis, a public health crisis, a law and order crisis and a crisis of confidence in government policy. This did not happen by accident. It is not something Australia can blame on events overseas. It is homegrown, and responsibility sits firmly with Labor. The bill increases penalties, expands investigative powers, allows telecommunications interception in illicit tobacco investigations and strengthens unexplained-wealth, search warrant and proceeds-of-crime powers. Those are serious tools and they are needed, but let us be honest about why we are here.”

    National Party • MP • 22 June 2026

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  9. Alison Penfold Penfold supports the bill as a worthwhile step against organised crime, but argues it is inadequate because tougher penalties will achieve little without stronger enforcement, coordination and action on tobacco excise settings that encourage the black market.
    “I support strong enforcement against organised crime. I support stronger penalties for criminal syndicates. I support targeting the money that fuels these operations. And I support giving law enforcement the tools they need to dismantle criminal networks, because if criminals lose the profits they lose the incentive. I will support the passage of the bill because any improvement is better than none, but it is not at all sufficient. Labor has lost control of illicit tobacco, and this bill does not provide the comprehensive solution that is now required.”

    National Party • MP • 22 June 2026

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  10. Andrew Hastie Hastie says the coalition will support the bill because its tougher penalties, investigative powers and proceeds-of-crime measures may help combat illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56.
    “The coalition will support the passage of the Combating Illicit Tobacco Bill 2026, and we will do so on the basis that it might assist law enforcement agencies and courts in dealing with the very serious problem of illicit tobacco. However, let's also be very clear: this bill is a minor and belated response to a crisis that has exploded under the Albanese government. Across Australia, illicit tobacco is at the core of what has become a multibillion-dollar black market. It is directly tied to organised crime, violence, intimidation and highly dangerous criminal activity. Its distribution has become a major criminal enterprise throughout the nation. Illegal tobacco stores are growing across Australia. Firebombings and violent attacks linked to organised criminal syndicates have become alarmingly common, and legitimate retailers are being undercut. Communities are being increasingly exposed to shocking criminal activity in this field, and, in short, the response of the Albanese government, after creating this very crisis in the first place, has been hopelessly insufficient.”

    Liberal Party • MP • 14 May 2026

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  11. Michael McCormack 3 contributions Michael McCormack says the bill is a belated and wholly inadequate response that lacks the enforcement strength needed to curb an illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 trade enriching organised crime and costing public revenue.

    Hansard records 3 separate contributions by Michael McCormack on this bill. They are grouped here so the speaker is listed once.

    Second reading speech National Party • MP • 04 June 2026

    McCormack says the illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market is out of control, enriching criminal groups, hurting legitimate small businesses and exposing weaknesses in current enforcement, but he does not clearly state whether he supports the bill.

    “Since the turn of the decade, this has just become out of control. But don't take my word for it. Ask any of the highway patrol officers who pull up vans incessantly on the Hume Highway and find not just illegal vapes and boxes of chop-chop and illegal smokes but bags of cash—hundreds and hundreds of thousands of dollars. This is now the black market and the means that bikie gangs and other nefarious groups are making their money. They're doing it at the expense of people who can't afford smokes due to the cost-of-living crisis. They're doing it at the expense of people who run small-businesses tobacconists. Indeed, many of these tobacconists find it hard to get insurance for their shops, let alone their next-door neighbours, who cannot get insurance for their shops because of the Molotov cocktails that are thrown into their stores late at night. This is a particular problem in Melbourne, as I read and as I understand.”
    Read this contribution in Hansard ↗

    Second reading speech National Party • MP • 04 June 2026

    Michael McCormack condemns the scale of illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 use and argues that it is depriving Australia of billions of dollars for hospitals, energy costs and taxpayers, but he does not state whether he supports the bill.

    “Up to four in five cigarettes smoked in Australia are illegal. This is a disgrace. This is an absolute disgrace. Between 2025-26 and 2029-30, the government expects to collect $15.4 billion in excise. That's compared to the $27.3 billion it had forecast for the same period in last year's budget. That is a shortfall of $11.9 billion in excise in money that could be spent in state hospitals, in money that could be spent keeping the lights on, in money that could be spent for hardworking taxpayers—”
    Read this contribution in Hansard ↗

    Second reading speech National Party • MP • 22 June 2026

    Michael McCormack says the bill is a belated and wholly inadequate response that lacks the enforcement strength needed to curb an illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 trade enriching organised crime and costing public revenue. He does not clearly state whether he will support or oppose its passage.

    “This bill is a partial, belated and wholly inadequate approach to a crisis that has exploded on Labor's watch. I feel for our hardworking patrol officers, such as my friend in the highway patrol, because they should be catching people who are speeding and breaking the road rules. They should be monitoring road safety, not babysitting this government, which has to be doing more at the border. I realise that you can't go through every 20-foot container. I understand that, but the government needs to have a far better response to this growing crisis. If this growing crisis remains in place, there will not be a legal cigarette sold in this country in the years to come. There will not. And this is on Labor's watch.”
    Read this contribution in Hansard ↗
  12. Jason Wood Jason Wood supports the bill's stronger enforcement powers and penalties, but argues the Australian Border Force also needs surveillance and telephone interception powers and that states need an effective penalty notice regime.
    “When it comes to law enforcement, the easiest way to do this—this is something I've been pushing for; I made speeches on it when in government—is for the states to have a penalty notice regime. The Commonwealth powers—the legislation changes and the stronger penalties—are fantastic, but the state and territory police are not going to use them. Even the surveillance powers and search warrants—again, the Australian Border Force can't use these powers. I say to the government: you need to give the Australian Border Force the surveillance powers, the telephone intercept powers, because they have to call on the Australian Federal Police when they're with these operations, with the Illicit Tobacco Taskforce. If members are seconded there and the ones who aren't have another operation—it could be a paedophile ring or major drug trafficking—that's always going to get priority. We need the Australian Border Force to get that priority.”

    Liberal Party • MP • 14 May 2026

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  13. Leon Rebello Leon Rebello argues that the bill addresses a rapidly growing illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56 market, but criticises Labor for raising tobacco excise and responding too slowly to organised crime and illegal vaping.
    “Meanwhile, on the other hand, you've seen a government in Labor that supported our amendment as the coalition to create the Illicit Tobacco and E-Cigarette Commissioner. But it took them more than a year to permanently appoint somebody to the role. And it's taken months after the budget last year for funds to flow to Labor's new national disruption group. While ministers talk, the black market is thriving, and more than 130 legitimate small businesses, often family run, have already been attacked around the country with millions of dollars in damage done.”

    Liberal National Party • MP • 22 June 2026

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Minor parties and independents

3 speakers · 3 support

  1. Kate Chaney Kate Chaney supports the bill's stronger offences, penalties and law enforcement powers against illicit tobaccoTobacco imported, made, held or traded outside the law. L54-L56, but says enforcement must be paired with public health measures and transparent policymaking protected from tobacco industry influence.
    “I rise to support the Combatting Illicit Tobacco Bill 2026. Smoking still kills about 66 Australians every day. After decades of hard work, daily smoking rates halved between 2001 and 2022 from 22 per cent to 11 per cent. Australia was a genuine world leader in tobacco control. The illicit market now threatens to undo much of that progress, fuelling organised crime and hooking a new generation. Among 18- to 24-year-olds, the combined rate of smoking and vaping has climbed back to 28 per cent, higher than it was a decade ago, and that's a trend that should alarm every member of this House. The illicit tobacco market is now estimated to be larger than the combined Australian illicit market for cannabis, cocaine, heroin and ecstasy. So the case for stronger enforcement is clear.”

    Independent • MP • 22 June 2026

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