Illegal tobacco deals another budget blow

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I reported last week on how increases in tobacco excise have resulted in a significant decline in Australia’s tobacco excise revenue.

While illegal cigarettes are easily accessible and cost about $15 a pack, a legal packet of cigarettes now costs about $50 (tax and excise account for about $34).

The Australian Bureau of Statistics (ABS) has announced that it is investigating ways to quantify the use of unlawful nicotine-related items in response to the rise in contraband cigarettes.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.