Illegal tobacco reached 80 percent of Australian consumption in 2025

Wastewater samples combined with household spending records indicate that 80 percent of cigarettes and vapes consumed in Australia in 2025 came from illegal sources. The share of illicit tobacco rose from 12 percent in 2017 to 80 percent last year. Nicotine consumption overall increased almost 40 percent over the same period.

Legal tobacco spending dropped at the same time, the Bureau of Statistics reported.

Price and tax changes Legal cigarette prices have nearly tripled since 2016 after repeated excise increases. The current excise stands at $1.52 per stick, more than 80 percent of the retail price of a 25-cigarette pack. Under-the-counter packs sell for about $25. Most illegal imports arrive from Asia and the Middle East.

Revenue impact Treasury lowered its tobacco excise forecast by $8 billion over the next five years. An Illicit Tobacco and E-cigarette Commissioner report estimated annual revenue losses between $7.7 billion and $11.8 billion. Border seizures reached 2.66 billion illegal cigarettes last year, up from 480 million in 2016.

Officials have added staff and equipment at ports while maintaining the current excise schedule.