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Title page 1

Contents 4

Members 3

Abbreviations 7

List of recommendations 9

Chapter 1. Introduction - Australia's illegal tobacco market 12

Introduction 12

Referral and terms of reference 13

Conduct of the inquiry 14

Structure of the report 14

Note on references 14

Background 14

Size and scope of the illegal tobacco market 15

International and domestic tobacco control policy 20

Previous inquiry 24

Next chapter 25

Chapter 2. Impacts of the illegal tobacco market 26

Introduction 26

Government revenue 26

Public health factors 27

Crime and community safety 31

Illegal tobacco as a facilitator of other criminal activities 34

Impact on legitimate businesses 35

Loss of sales 36

Insurance premiums 37

Safety and security of retail workers 39

Rural and regional small businesses 42

Next chapter 43

Chapter 3. Law enforcement, intelligence and regulatory responses 44

Australian Government response 45

Legislative responses 49

State and territory government responses 52

New South Wales 54

South Australia 55

Queensland 56

Western Australia 57

Victoria 58

Northern Territory 58

Challenges faced by states and territories 59

Next chapter 60

Chapter 4. Reform options 61

Improvements to data and reporting 61

Tobacco excise 63

Arguments against excise reform 64

Arguments for excise reform 65

Proposed options for excise reform 66

Supply reduction measures 70

Enforcement 70

Regulatory reforms 75

Demand reduction measures 77

Increased public education about illegal tobacco 77

Cessation support 79

Access to other tobacco alternatives 80

Alignment across jurisdictions 81

Retail licence limits 82

Next chapter 83

Chapter 5. Committee view 84

Tobacco excise reform 85

Improved access to non-smoking nicotine products 85

Further investment in enforcement and demand reduction 86

A nationally harmonised approach to illegal tobacco 87

Building a stronger evidence base for reform 88

Implementation of a track and trace scheme 89

Illegal tobacco websites 89

Government Senators' Dissenting Report 91

Australian Greens Senators' Dissenting Report 101

One Nation Senators' Additional Comments 108

Appendix 1. Submissions and additional information 111

Appendix 2. Public hearings and witnesses 119

Tables 39

Table 2.1. Crime incidents reported by OTR Group, 2025 and 2026 39

Table 3.1. Enforcement powers 53

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