Premier Jeremy Rockliff has urged the federal government to cut the tobacco excise, blaming it for fuelling the black market and strengthening organised crime.
Rockliff said excessive increases to the excise had made illegal tobacco more accessible and put pressure on honest small businesses.
He said the state government had already introduced tougher laws and stronger penalties to crack down on the illegal trade.
But he said there was a “critical missing piece, a failed federal policy that continues to make the black market more profitable”.
“It’s time for the federal government to take responsibility and take corrective action,” he said.
His call comes after recent Australian Bureau of Statistics data estimated 80% of the tobacco consumed in Australia in 2025 was illegal, up from 12% in 2017.
The ABS found nicotine consumption rose by almost 40% between 2017 and 2025, while the population grew by 14%.
Prices for legal tobacco have almost tripled since December 2016, driven by annual excise increases, while illicit tobacco prices have remained relatively stable.
The push also follows a national crackdown last month, when officers seized more than 365,000 illicit cigarettes, about 156 kilograms of loose-leaf tobacco and more than 1,600 vaping devices from four Tasmanian freight facilities.
The federal government has resisted calls to cut the excise, instead focusing on stronger border enforcement.
Treasurer Jim Chalmers has previously said he is ‘sceptical’ it would work.
