Australia's Cigarette Black Market: A Billion Dollar Problem

0:00Australian border force is seizing almost 6 million illicit cigarettes a day, but they say the battle against this organized crime record won't end without tackling sky high prices on legal smokes. In six months last year, they napped over 1 billion cigarettes and 147 tons of loose tobacco dodging nearly $2 billion. In ex-size revenue, meanwhile, federal tobacco taxes, once a top earner, have cratered over five years despite massive hikes and tougher border checks. By 2029-30, that $65 billion lost, even as policing ramped up to 41 detections daily. Smokers are jumping to the black market because legal packs cost up to 40 bucks more than illicit ones, fueling huge demand. States want extra cash to crack down, legal sellers push for tax cuts, but the government's holding firm against lowering rates. Criminals treat seizures as just business costs, linking up for better smuggling and finance. Border force predicts though pivots of fake vapes, spark turf wars over shops, or even grow tobacco at home, calling for hits on supply chains, demand and money flows.

1:10Politicians from both sides agree, enforcement solo ain't enough, price gaps keep the demand alive. Fixing this means coordinated moves across borders, states, and smoker habits to shut down the whole operation for good. That's the story for today. Sydney News Today, Driven by AI, I'm Cory with the Story.