10 August 2018
Media Release - #2018094, 2018

In the role of: Minister for Revenue and Financial Services [19 July 2016 - 28 August 2018]

Cracking down on black market tobacco

Joint media release with
The Hon Angus Taylor MP
Minister for Law Enforcement and Cyber Security

The Turnbull Government is safeguarding Australia’s tobacco revenue collection as part of a suite of reforms to address the illicit tobacco black market.

Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, said the Turnbull Government is consulting on proposed amendments to change the point at which tax is payable on tobacco to prevent its diversion to the illicit market.

“Taxing tobacco closer to its point of origin will make it harder for criminal groups to defraud the Commonwealth and Australian taxpayers. After all, our tax revenue goes to securing the essential services all Australians rely on,” Minister O’Dwyer said.

“Licensed tobacco importers will be required to pay all duties and taxes upon importation to Australia rather than as it leaves a warehouse and enters the domestic market. The point of taxation will be the same for any possible future manufacturers.

“Our changes will reduce criminal activity, protect Australian revenue and provide an estimated $3 billion to the Commonwealth.”

Minister for Law Enforcement and Cyber Security, the Hon Angus Taylor MP, said legitimate trade is an important priority for Government.

“Leaking from warehouses to the black market contributes to almost a quarter of illicit tobacco in Australia,” Minister Taylor said.

“Our law enforcement and border agencies are focused on targeting revenue evasion which, if left unchecked, is ultimately channelled back into organised crime.

“These amendments will complement the work of the new Illicit Tobacco Taskforce, which only last month uncovered 17 acres of illegal tobacco crops and 6 tonnes of tobacco leaf with an estimated excise value of $13.3 million.”

Public and industry submissions on the Customs Amendment (Collecting Tobacco Duties at the Border) Bill 2018 and the Treasury Laws Amendment (Collecting Tobacco Duties at Manufacture) Bill are now open.

To participate in the public consultation, please see the Customs Act amendments and the Treasury amendments.