Topic analysis

Australians are spending less to consume more nicotine as illegal tobacco trade explodes

Experimental data from the Australian Bureau of Statistics (ABS) shows Australians consumed 40% more nicotine between 2017 and 2025, with 80% of tobacco sourced illegally by 2025; this shift to cheaper illicit products has reduced household cigarette spending and created a $6.9bn federal budget gap from lower tobacco excise revenue. State governments including New South Wales and Victoria have introduced stricter penalties to combat the trade, while officials and experts debate whether lowering excise or increasing enforcement is the best solution.