Additional comments from Coalition Senators

Tobacco control and the health of all Australians are important priorities

1.1The Coalition supports the broad aim of this legislation, in promoting Australia’s efficient and effective tobacco control framework.

1.2A report for the Australian Government Department of Health and Aged Care estimated that in early 2023, the population of Australia from ages 14 and above, included over 3.5 million smokers and/or vapers; reflecting 11.8% of the population.[1]

1.3Although the legislation does focus on imposing penalties for non-compliance with the regulations, it falls considerably short in deterring or otherwise penalising those in the illegal trade.

1.4The Coalition notes that the penalties for illegal activity remain unchanged. An effort to address this is vital because of the increasingly rampant and growing problem of illegal tobacco in Australia. The illegal tobacco trade threatens both the public health of Australians and impacts government revenue. The loss of government revenue takes funds away from vital services and priorities. It encourages crime and activity organised around illegal trade.

1.5Coalition Senators believe that the objectives of this legislation can be, and will only be, fully addressed through a comprehensive and coordinated effort to combat the problem of illegal tobacco which has the potential to grow and increase.

1.6Coalition Senators also believe that the illegal tobacco trade affects all levels of society, and illegal tobacco can encourage new users or existing ones to continue smoking.

1.7The Coalition strongly recommends that the government increase the penalties of illegal tobacco and implement stronger legal action and remedies for those who break the law. This goes hand-in-hand with public education on the risks of illegal tobacco use. Collaboration with our international partners is vital, as is research.

1.8Australian governments have been proactive in initiating cessation programs and support services.Initiatives to reduce tobacco use include the use of graphic health warnings and plain packaging and there are strong restrictions on tobacco advertising and sponsorship. This goes a long way to ensure that tobacco companies in Australia cannot exploit loopholes that may exist for indirect promotion of tobacco products.

1.9A focus on illegal tobacco trade was a significant issue raised by a number of stakeholders.

1.10In its submission, the Police Federation of Australia held that the bill’s intent:

… will be undermined and not achieved unless the government has a concerted effort to attack the proliferation of illicit tobacco and vape products currently readily available to the public.[2]

1.11Phillip Morris Australia states:

One of the central objectives of the Bill is to reduce daily smoking prevalence in Australia. However, this simply cannot be achieved if one sizeable component of the tobacco market (illicit) is being ignored and allowed to grow at an exponential rate.[3]

1.12Proving there is an appetite from the medical profession for more attention on the illicit market, the Australian Medical Association stated in an attachment to their submission:

The AMA supports in-principle strong compliance and enforcement of the Act. All governments should ensure that compliance and enforcement is adequately resourced, noting the scale and complexity of current illicit tobacco and e-cigarette markets.[4]

1.13There are other consequences. Theo Foukkare, Chief Executive Officer of the Australian Association of Convenient Stores, represents 7000 convenience stores across the nation. At the public hearing on 2 November, he noted that:

The facts are as follows. There have been over 41 illegal-tobacco-related arson attacks and two associated murders in the past year. Nearly one in four cigarettes sold in Australia are from the black market, costing taxpayers more than $4 billion a year. Despite the retail sale of nicotine vaping products being banned for over two years now, the number of adult vapers in Australia has increased by 340 per cent over the past five years to over 1.6 million adults, of which 92 per cent are buying products illegally.[5]

1.14Coalition Senators wish to thank the individuals, departments, companies and organisations who have contributed via submissions and at public hearings.

Senator Maria KovacicSenator Kerrynne Liddle

Footnotes

[1]Centre for Behavioural Research in Cancer, Cancer Council Victoria, Current Vaping and Current Smoking in the Australian Population, May 2023.

[2]Police Federation of Australia, Submission 16, p. 5.

[3]Phillip Morris Australia, Submission 19, p. 5.

[4]Australian Medical Association, Submission 9, Attachment 1, p. 5.

[5]Mr Theo Foukkare, Chief Executive Officer, Australian Association of Convenience Stores, Committee Hansard, 2 November 2023, p. 2.