The Opposition has today called for a Parliamentary Inquiry into the illegal tobacco (“chop chop”) trade in NSW.
This inquiry would cover, but not be limited to, organised crime links to the illegal tobacco trade in NSW, departmental responsibility for enforcement, licensing schemes for tobacconists, landlord responsibilities, increasing penalties, money laundering schemes operating via tobacconists, improved education and public awareness.
Shadow Health Minister Kellie Sloane says we are seeing an alarming increase in the supply of illegal tobacco in NSW, which has been linked to organised crime syndicates.
“Profits from illegal tobacco sales are lining the pockets of criminals, with the growing trade estimated to be worth billions in Australia. This inquiry will give parliament the opportunity to hear from experts, small businesses, health professionals and law enforcement to ensure we have the right legislation in NSW to crack down on this illegal trade,” said Ms Sloane.
“We know that users of illegal tobacco report significantly worse health outcomes than smokers of legal tobacco[1], and given the lower cost and easy access to illegal tobacco, NSW is at risk of going backwards on fifty years of public health progress in reducing nicotine and smoking rates.”
Shadow Minister for Regional Health Gurmesh Singh says the illegal tobacco trade is putting pressure on small businesses across New South Wales, especially in the regions.
“The regulation of the tobacco industry has been a cornerstone of our health response to smoking for decades. It’s important to our communities to have an open inquiry into the illegal aspects of this industry.”
Key Facts:
- NSW Health data shows there has been an increase in the number of tobacconists opening, rising from 14,500 four years ago to 19,500 today.
- Tobacco smoke accounts for around half of the estimated preventable cancers deaths in Australia.
- Some batches of illegal tobacco contain bulking agents such as twigs, raw cotton and grass clippings. Fungal (mould) spores have also been detected.[2]
- The ATO has estimated that 1,234 tonnes of illegal tobacco went undetected in the Australian market in 2020–21, worth approximately $1.89 billion, and that approximately 10 % of Australia’s tobacco market were illicit. [3]
- Since 2018, authorities have seized nearly 480,000 kilos of illegal tobacco, which equates to nearly 22 million cigarettes and $731 million in lost excise. [4]
4 https://www.ato.gov.au/about-ato/tax-avoidance/the-fight-against-tax-crime/our-focus/illicit-tobacco