Source : Perth Now news
Australia’s ability to disrupt the supply chain of illicit tobacco will be bolstered under new reforms, as pressure on the Albanese government to slash the excise mounts.
The Coalition says it would slash the tobacco excise by 80 per cent should it come to power – building on a 75 per cent cut pledged to by One Nation earlier this year.
Australia currently has some of the most expensive cigarette products in the world.
NSW Premier Chris Minns has agitated for more than a year for the excise to be re-evaluate amid a surge in illicit tobacco.
Illicit tobacco is estimated to account for up to 80 per cent of tobacco consumed in Australia.
However, the proposal has faced pushback, including from the federal government, over fears it might increase smoking rates or only push down further the price of illicit tobacco.
Instead, the government on Thursday introduced reforms to the parliament aimed at bolstering regulation of the importation and storage of tobacco.
“The illicit tobacco market has changed significantly in recent years,” according to an explanatory memorandum.
“Illicit tobacco is increasingly imported and distributed through sophisticated supply chains involving offshore procurement, concealment and other methodologies, false or misleading documentation, multiple intermediaries and the deliberate fragmentation of importation, transport, storage and distribution activities.”
Organised crime groups were heavily involved in the trade, which they viewed as “a low-risk, high-reward activity and have adapted their operations to exploit weaknesses in existing law”, the memorandum warns.
Under the changes, the government will establish two new criminal offences with a “reasonable suspicion” test, and four new offences for importing tobacco without permission or in breach of permit conditions.
Stronger penalties will also be introduced for unlawful tobacco importation, as well as new licensing conditions, including at depots and warehouses, penalties for defacing property tracking documents, and amendments to crackdown on unexplained wealth.
“The measures are also intended to prevent the diversion of tobacco products into the domestic market, where those tobacco products are required to be exported from Australia,” the explanatory memorandum stated.
“These measures will also improve the operational efficiency of the Australian Border Force (ABF), and its capability to respond to the prevalence of illicit tobacco imported unlawfully and circulated within the Australian community.”
The measures will return to parliament later this year.
