Illicit tobacco market shrinks after record seizures
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Australia’s illicit tobacco market has shrunk by as much as 24 per cent after a record number of seizures by the Australian Border Force.
The drop in volume by up to 1438 tonnes from last year’s peak estimate reverses an average annual growth in volume of 22.6 per cent over the past five years, according to new figures from the Illicit Tobacco and E-cigarette Commissioner.
The government has invested close to $100 million in supporting states and territories with street level enforcement and dialling up shop closures, while the ABF seized more than 730 tonnes of illicit tobacco in the first quarter of this financial year, a 50 per cent increase on last year.
“Every illicit cigarette seized, every store closed and every network disrupted sends the same message to criminals: we know who you are, we know how you operate, and we’re coming after you and your profits,” said Assistant Minister for Customs Julian Hill.
The booming illicit tobacco market wiped $6 billion from the federal coffers in the first five months of 2026, according to budget papers which also forecast tobacco excise would plummet to just over $2 billion a year by 2030.
