3 June 2025

NSW smoking at record low as Minns asks Canberra to slash tobacco excise

| John Murtagh
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NSW Premier Chris Minns is calling for the Federal Government to reduce the tobacco excise. Photo: File.

NSW’s 2024 Population Health Survey has found that smoking rates among adults are at a record low.

Rates of daily or occasional smoking sit at around 11 per cent, representing a decline from 14 per cent a decade ago.

Tobacco use is the top cause of preventable death in Australia, and the push to reduce smoking has been a major part of state and federal health strategies for years.

While smoking rates have declined, the incidence of vaping remains high, particularly among people aged 16-24, who vape at a rate of 20 per cent. However, while vaping rates among this age group rose rapidly from 2018-2023, they have now stabilised.

READ ALSO Tasmania toughening vaping laws with bill’s preliminary passing in Upper House

The new survey data comes amid NSW Premier Chris Minns’s call for the Federal Government to reduce the tobacco excise in an effort to combat the booming black market in tobacco products.

Treasury has estimated that $6.9 billion will be lost between now and 2029 as Australians make the switch to illicit, cheaper tobacco that is, of course, untaxed.

As the price rises, smokers already enduring a cost-of-living crisis are turning to cheaper alternatives that are unregulated, untaxed and less healthy, depriving government coffers of much-needed funds.

Cigarette prices in Australia are among the highest in the world. According to the World Health Organisation, taxes make up roughly 75 per cent of the price of a pack of cigarettes.

READ ALSO South Australian laws to snuff out illegal tobacco trade with stronger police powers

Heavier penalties and regulations from various state governments have been introduced to crack down on the illicit tobacco trade.

But Mr Minns has questioned the use of police time on such issues.

“The massive increase [in the excise] has exploded the illicit tobacco marketplace,” he said.

“And is it the best use of NSW Police time to be devoted to tobacco sales, when in the end the Federal Government’s not getting the excise that they thought?”

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