Susan Templeman (Macquarie, Australian Labor Party) | Hansard source

It's pretty disgraceful hearing a member opposite talk about lack of action. These are not newly emerged issues. These are issues that, when the member for Goldstein was last in government, we supported that government in trying to take action on. Did they go far enough? No way. But we supported those steps.

I'm going to read to you from a media release, put out in September 2018 by the then minister, the Hon. Stuart Robert MP. It talked about cracking down on the illicit tobacco black market. This is not something new that's just happened since we came to government. This has been something that has built up, and governments prior to us have failed in being able to stop it. Mr Robert, at that time, spoke of the actions they were taking and the changes they were making on duty liabilities being paid when tobacco is imported into Australia. The release said:

Together with the newly established, Australian Border Force-led Illicit Tobacco Taskforce and the proposed import permit requirement for tobacco announced in the 2018-19 Budget, the Government is ensuring the Australian border is even more resilient to organised criminal groups that facilitate tobacco smuggling.

"Tackling duty evasion and black economy activities in the tobacco warehouse environment will disrupt illicit tobacco supply chains and deny organised crime syndicates access to the illicit profits that fund their other criminal and black economy activities," said Assistant Treasurer Robert.

"This will reduce criminal activity, protect law-abiding local businesses and provide an estimated $3 billion in revenue to the Commonwealth," Assistant Treasurer Robert said.

That was obviously very well intentioned. But clearly, from September 2018 to now, we have not seen those measures make a significant difference, so we are taking further steps, as we have done all through our time in government, to tackle an issue that both sides agree is a problem. In the way that we were supportive when we were in opposition, I look to the support of those opposite for the efforts that we're making.

Across Macquarie, we're seeing those bright yellow stickers on the front windows of tobacconist shops suspected of selling illicit tobacco products or selling tobacco without a licence. What goes along with those stickers is a three-month closure for that tobacconist. I've seen these stickers in the Riverview Shopping Centre in Windsor, which is just up the road from my electorate office; inside the Richmond Marketplace in Richmond; and on the main streets of some of our towns, including, in Springwood, next door to Dbl Ristretto, a very popular coffee shop. They are a welcome indicator, right in front of our eyes, as we go to our local shops, that you can see of actions being taken at the state level to combat the availability of illicit cigarettes, vapes and loose-leaf tobacco in our communities. The Commonwealth, states and territories are working together to reverse the equation for organised crime at every step and in every way to make the illicit tobacco trade more risky and less profitable, disrupting the illicit supply chain and shutting down illegal shops. This bill is another step in that process.

I think people have asked themselves, 'Can I do something if I see shops selling illicit cigarettes or illegal vapes?' The answer is yes. Any one of us can make a report. There are three different ways to do so. You can report suspicious sales or illicit products to Border Watch on their 1800395706 number or at borderwatch.gov.au, to Crime Stoppers on 1800333000 or crimestoppers.com.au or through NSW Health, in New South Wales, for local enforcement of tobacco and vaping laws.

Retailers who are found to be noncompliant with closure orders may be subject to further enforcement actions or penalties. A local New South Wales court can issue a long-term closure order of up to a year if it's satisfied that illicit tobacco or illicit vaping goods have been, or are likely to be, sold or if tobacco or non-tobacco smoking products are sold without a licence.

To disrupt the illicit tobacco trade, we have to think about things at every single stage—pre border, at border and post border. Preborder intelligence sharing has been enhanced with partners such as the UAE, China, Singapore, Sri Lanka and others. The best container of illegal tobacco is one that never even reaches Australia's shores. At the border and post border, Australian Border Force data tells us that in 2024-25 they achieved record levels of seizures, supported by $188 million of extra Commonwealth funding. They seized 2.66 billion cigarettes, and that's up more than 320 per cent on four years ago. The national disruption group, led by the Australian Border Force, is up and running, bringing together Commonwealth agencies and all states and territories, with national weeks of action planned across the country. The Police Ministers Council's received advice on 50 pieces of legislative reform and laws that are now being strengthened.

The Commonwealth's Combating Illegal Tobacco Bill 2026 that we're debating today will raise penalties, activate intelligence and law enforcement techniques, such as wiretaps and computer intercepts, and strengthen proceeds-of-crime laws. Hitting criminals where it hurts means using every single tool and more rapidly taking their profits, cars, cash, houses, boats and other toys away. Priorities identified for states and territories include licensing seizures, shutting down illegal shops, going after landlords and lifting resourcing of frontline enforcement.

The Commonwealth funding to states and territories is now flowing, with $84 million extra to help put trained people on the ground, improve licensing and enable joint operations. AUSTRAC is working with the banks and service providers to shut down the money flows that keep illicit tobacco profitable. Hundreds of accounts have already been closed and payment systems stopped. This bill expands law enforcement powers to investigate illicit tobacco related offending and increases the consequences for criminal actors involved in the illicit tobacco market. It's a crucial step in addressing the rapidly expanding illicit market.

We know illicit tobacco is no longer just a health or revenue problem. It's a serious organised crime activity and is a major source of funds which are used to fund other serious harms and crimes. The illicit tobacco trade, as I said at the start, is not new, nor is it a problem isolated to Australia. It is a global problem. The first strike team, in fact, was set up under Border Force in 2015. We need to keep fighting it and not blame each other. Those opposite need to recognise that, just as we supported the steps they made, we need their full support in taking these actions.

The Illicit Tobacco and E-cigarette Cigarette Commissioner report estimated that the value of the illicit tobacco market was between $4.1 billion and $6.9 billion in 2024-25. Organised crime groups are earning between $4 billion and $7 billion in profits, funding other crimes like trafficking scams and money laundering. We know this trade fuels violence, firebombings and intimidation and risks the unwinding of decades of success in tobacco control policy and lowering smoking rates in Australia. These are not victimless crimes. They harm communities, honest retailers and workers, and they make the public less safe.

In that context, this bill seeks to achieve two objectives. One is to rebalance the risk-to-reward calculation for criminal actors by raising offence penalties to match the severity of the harms being caused by the illicit tobacco trade. The other is making the proceeds-of-crime regime more effective to go after the profits generated from illicit tobacco, which is of course the main motivation. Since 2023-24, the Albanese Labor government has provided $346 million in funding to the Australian Border Force to crack down on illicit tobacco and vaping products. We also appointed the first ever Illicit Tobacco and E-cigarette Commissioner, with $21 million allocated in the 2025-26 budget to help coordinate those national efforts that are now underway. The three key focuses of the government's action are, firstly, to disrupt and dismantle border threats to stem the flow of illicit tobacco and vapes to Australia before they make it to our shores; secondly, to enhance detection, disruption and destruction of illicit tobacco and vapes at the border and within the community; and, thirdly, to have better connection and coordination of efforts across the Commonwealth and states and territories, including through the establishment of the national disruption group.

Since January 2024, more than 14 million vaping products and accessories have been seized by the Australian Border Force. In just the last six months of last year, more than a billion illicit cigarettes were also seized. This government's focus is simple: shut down illegal shops, choke off the money and make this trade unprofitable. Over the last six months, interjurisdictional relationships between the Commonwealth, states and territories have rapidly improved and we've seen a strong new cooperation through the National Illicit Tobacco and E-cigarette Coordination Forum. I really want to give a shout-out. South Australia and Queensland are already showing illegal trade falls when enforcement hits 100 per cent of an area, and Victoria is moving to strengthen closure and landlord laws. These are really good things to see.

The Albanese government remains committed to working with our state and territory partners to continue to tackle the illicit tobacco trade, and I would hope those opposite are with us all the way.

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