Tobacco black market fuels violence as illicit trade surges in Australia

Australia is grappling with a surge in violent attacks targeting tobacconists, with criminal gangs vying for control of the burgeoning illegal tobacco market. Over the past 18 months, approximately 200 tobacconist shops—predominantly in Victoria but increasingly in other parts of the country—have been firebombed or otherwise destroyed in what has become one of the most violent gang wars in the nation's recent history.

This alarming wave of criminal activity stems from a thriving black market estimated to be worth $5 billion annually. The spike in illegal trade has been linked to Australia’s heavily taxed cigarettes, a government strategy aimed at discouraging smoking. However, critics argue that these exorbitant taxes have inadvertently fueled organized crime, creating a highly lucrative illicit trade that is now driving unprecedented levels of violence.

In a joint investigation by 60 Minutes, The Age, and the Sydney Morning Herald, investigative journalist Nick McKenzie sheds light on how the federal government’s tobacco excise policies—intended to reduce smoking rates—may have unintentionally created fertile ground for criminal enterprises.

A federal government spokesperson defended the measures, emphasizing that the changes to tobacco excise are designed to encourage smokers to quit and improve public health outcomes. The spokesperson also highlighted the government’s efforts to curb the illicit trade, noting that $188.5 million has been allocated to the Australian Border Force (ABF) to combat the illegal tobacco market.

“The ABF is working closely with states and territories to increase compliance and crack down on the organized crime networks profiting from illicit tobacco,” the statement read. “Record levels of illicit tobacco are being targeted and seized at our borders, and prosecutions are taking place.”

The spokesperson also criticized the previous decade of inaction under Liberal leadership, stating that Labor’s initiatives, such as world-leading plain packaging reforms, had been undermined. According to the government, this failure has disproportionately impacted Australia’s poorest and most marginalized communities, who bear the brunt of both high tobacco prices and the violence associated with the illegal trade.

Despite these efforts, the issue remains urgent. Long-term smokers in Australia die an average of 10 years earlier than non-smokers, and tobacco use remains one of the leading causes of preventable death and disability. Yet, as the illicit market continues to grow, the federal government faces mounting pressure to address the unintended consequences of its tobacco excise policies, which have inadvertently empowered organized crime and endangered law-abiding businesses.

The violent struggle for control of the illegal tobacco trade is a stark reminder of the complexities involved in balancing public health measures with the unintended economic and social ripple effects they can create.