The federal opposition is pushing for a wide ranging Senate inquiry into Australia’s rapidly expanding illegal tobacco market. Concerns are growing about the level of involvement by organised crime groups and the increasing violence linked to the trade, prompting calls for a deeper investigation into how the sector operates and where it is heading.
What the Inquiry Would Examine
The proposal asks for a detailed review of the size of the illicit tobacco market, its effect on government revenue and public health, and how criminal networks are shaping the industry. The opposition also wants the committee to hear from small businesses, particularly in rural and regional areas, which continue to face rising insurance costs, attacks on shopfronts, and significant financial losses.
The inquiry would also consider potential future developments, including the likelihood of more violence as criminal groups compete for control of the market.
Concerns Over Current Government Policies
The opposition argues that existing government measures have not reduced the illegal trade and may have unintentionally driven more Australians towards black market products. Expectations of higher tax revenue from tobacco have not been met, with the opposition claiming that the federal budget has suffered as a result.
They say a public inquiry would provide an opportunity for businesses and community members to describe how the illicit trade is affecting them and to outline what changes they believe are needed to restore control and safety.
Police and Crime Agencies Sound the Alarm
The call for an inquiry follows a recent report by the NSW Crime Commission warning that organised crime groups are increasingly active in the illegal tobacco and vape market. The commission noted a growing level of violence as rival groups fight over what has become a highly profitable market.
At the same time, the Australian Federal Police has raised concerns at international meetings, urging overseas law enforcement agencies to work with Australia to disrupt the networks responsible for shipping illegal tobacco into the country. These groups are believed to use the profits to support a wide range of criminal activities.
Growing Pressure for National Action
With state and federal agencies reporting escalating criminal activity linked to illegal tobacco, the pressure is building for a coordinated national response. The proposed Senate inquiry aims to bring together evidence from all sectors to help shape a more effective strategy for tackling the issue.
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