Australia now has one of the most restrictive nicotine control regimes in the developed world. Cigarettes face some of the highest taxes globally, while consumer nicotine vaping products are virtually banned. Intended to curb smoking, these policies have instead fuelled a thriving black market for tobacco and vapes, bringing with it organised crime, violence, and lost government revenue.
More than 220 firebombings, multiple homicides, and widespread extortion have been linked to the illicit tobacco and vape trade. Legal cigarette sales have fallen, but not because people have quit; illegal, untaxed, and unregulated products are now easily accessible at a fraction of the price.
A Missed Harm Reduction Opportunity
Countries like New Zealand, Sweden, and Japan have taken a different path, making lower-risk nicotine products more accessible than cigarettes. New Zealand’s smoking rate has dropped twice as fast as Australia’s since introducing regulated vaping, with the most dramatic gains among disadvantaged groups. These nations show that when safer alternatives are legal, regulated, and affordable, smoking rates fall faster and illicit trade is minimised.
Australia’s Current Policy Failures
- Excessive taxation: Tobacco excise has risen 282% since 2013, creating a vast price gap between legal and illegal products.
- De facto vape prohibition: Consumer nicotine vapes remain effectively banned, pushing demand to the black market.
- Rising crime: Organised criminal networks control much of the illicit trade.
- Public health stagnation: Smoking rates are falling more slowly than in harm reduction–friendly nations.
The Path Forward
Harm Reduction Australia’s policy brief outlines five urgent reforms:
- Regulated legal market for lower-risk nicotine products, sold through licensed, age-restricted outlets with quality controls.
- Public health campaigns encourage smokers to switch to safer alternatives while warning non-smokers not to start.
- Tobacco tax rollback to pre-2020 levels to reduce illicit price incentives.
- Inclusion of lived experience, ensuring people who smoke or vape have a voice in policymaking.
- Shift funding from enforcement to regulation, education, and cessation support.
Why It Matters
Without reform, Australia will continue to see high smoking rates in disadvantaged communities, growing black market dominance, and escalating public safety threats. By following evidence-based harm reduction principles, already proven abroad, Australia could reduce smoking faster, cut crime, and save lives.
The choice is clear: Maintain an expensive, dangerous status quo—or embrace regulated harm reduction and finally put public health first.
