Illicit tobacco markets in Australia

Given the high cost of cigarettes, with a tax of $1 for each smoke, Mark Lauchs presents his research into the growing market of cheaper illicit tobacco in Australia. Read more …

Australia will have the most expensive tobacco in the world in 2016 with a taxed market price of $1 per cigarette. While this is an admirable social health policy with proven outcomes in smoking reduction, the evidence also points to an increasing number of remaining smokers choosing to buy cheaper illicit tobacco rather than give up smoking. This policy will also produce a more lucrative black market with much higher profit margins and low risk of attention from law enforcement. This study will examine the current sectors of Australian society that are smokers to predict the market places for illicit tobacco. Particular attention will be paid to migrant communities from overseas nations with high rates of smoking and the remote indigenous communities which have a much greater prevalence of smoking and use of illicit drugs. The study will make recommendations for prevention and policing to help alleviate the negative effects of the black market in tobacco in Australia.