Steve Georganas (Adelaide, Australian Labor Party) | Hansard source

I know about addiction to this horrendous drug that has addicted billions of people around this earth and caused health devastation everywhere you go in every corner in this world. It is one of the most addictive drugs that humankind has seen. It is the hardest drug to get off—harder than heroin, amphetamines and most other drugs. This is what the illicit tobacco trade knows and understands really well, and it is why they're targeting this area. They know that the addiction is so great that, no matter the cost, people will try to find a way to get their tobacco.

This bill strengthens law enforcement powers and significantly increases the penalties for illicit tobacco offences, ensuring that the legal framework will finally reflect the seriousness of the harm being done. Let's be clear, this is not a minor issue. It's not an isolated compliance matter; it's a multibillion-dollar criminal enterprise, and governments, regardless of their persuasion—whether they're from the coalition side or the Labor side or the callithumpian side—should be doing everything possible to wipe it out or to keep it at bay as much as possible. Recent reporting has estimated the value of the illicit tobacco market to be between $4.1 billion and $6.9 billion. That is billions of dollars flowing into illegal networks, strengthening organised crime, undermining lawful businesses and putting Australians at risk.

The bill has two clear and essential objectives. The first is to rebalance the risk-to-reward equation for those engaging in illegal activities, ensuring that penalties truly reflect the scale of the harm caused and that crime in this space is no longer seen as a low-risk, high-reward opportunity. The second is to strengthen Australia's proceeds of crime regime so that those profiting from illicit tobacco can no longer hide behind complex financial structures and their unlawful gains can be properly targeted and removed.

As I said, illicit tobacco is not just about lost revenue. It directly undermines the progress that's been made over decades in reducing smoking rates here in Australia. We have been leaders in the world when it comes to tobacco reduction, whether it be through the banning of advertising on TV, the sporting ban at our cricket and football matches or the plain packaging tobacco laws that we brought in. I chaired the health committee at the time, and I remember very well that, when we conducted the inquiry, we had a conga line of tobacco companies come in with their lawyers, their consultants and their million-dollar CEOs to give evidence. They were all trying to tell us that what we were doing was illegal or wasn't quite right.

What we saw as a direct result of the plain packaging of tobacco, in the years in front of it, was that the amount of people taking up smoking—in other words, teenagers—was dropping at a remarkable rate because the fancy advertising and packaging wasn't working. We've done some great things in this country when it comes to reducing the numbers, and we don't want to see it now going upwards. That's really important to keep in mind.

What's taking place now is exposing Australians to unregulated and potentially dangerous products. Tobacco is dangerous as it is, even legal tobacco. It creates health problems. It causes cancer, asthma—a whole range of things. Unregulated, it is even more dangerous. It fuels organised crime, embedding criminal activity deeper into our communities. The reality is really clear. The illicit tobacco trade has continued to grow rapidly and profitably. That tells us that the current system is not working and that it's not strong enough. When you come to that realisation, then there's no doubt that we need stronger laws. Without stronger laws, without tougher penalties and without effective enforcement powers, the risk remains low for those breaking the law, and that is simply not acceptable.

This issue is not theoretical; it's already playing out in real time in communities all over Australia. In fact, in my electorate and my community of Adelaide in 2025, a local shop in Torrensville became caught in what can only be described as the escalating violence in the illicit tobacco trade. In the middle of the day, in full view of the public, a brazen arson attack took place. It was a weekend, on a Saturday, when all the shops were operating all around it. It was so intense that two men were seen emerging from the building engulfed in flames. They obviously tried to firebomb the place, but it backfired on them. It exposes Australians to much danger. Three people in this incident were seriously injured and rushed to the Royal Adelaide Hospital suffering from severe burns. The damage to the businesses was devastating, with early estimates exceeding $500,000, and it was the wrong business. They had targeted the wrong place. It's putting Australians into danger every single day.

The cost goes far beyond dollars. It is the fear, the trauma and the disruption that's inflicted on local businesses and their workers and the entire community. Pressure is being put onto businesses to sell their illegal products. We know so. We've read about it in our papers. We've seen it on our news stories. We've seen it on Four Corners. These people are thugs that basically don't care about the safety of anyone. They don't care about new addicts in the tobacco game. They will put the pressure on particular shop owners to sell their illegal product through fear and trauma and the disruption that's inflicted on them and their local businesses.

Tragically, the incident that I just explained is not the only or an isolated incident in my electorate. Just days earlier from that incident, another shop located only a few hundred metres away had its doors smashed and fire deliberately lit inside. That business was left completely gutted. It was reduced to little more than charred walls, blackened floors and the remains of what had once been a thriving local enterprise. These are businesses that have nothing to do with illicit tobacco, yet they are being dragged into a cycle of violence driven by criminal networks operating in this space. Either pressure is being put to them to sell their illegal product, they're saying no and they get attacked or they're selling someone else's illegal product and therefore another crime group will attack them.

We've seen so many similar incidents, not just in my electorate but all over the country, continuously. In 2024, an office—again, in my electorate—was targeted by a Molotov cocktail attack, reducing it to ash. It is believed that the real target was the tobacco business next door. They missed the target and burnt down an innocent, law-abiding citizen's business. It's believed that the real target, obviously, was the tobacco business next door to this particular office block. This is the reality: indiscriminate violence spilling into surrounding businesses and communities, putting innocent people's lives at risk.

These so-called tobacco wars are not just about illegal cigarettes. They're about organised crime asserting control, using intimidation and violence, to protect a highly profitable illegal market. Authorities now estimate that there are 200 tobacco stores just in Adelaide alone. It's believed that 50 to 60 per cent of all tobacco products sold are now illicit, and this may get worse before it gets better. That's the scale of this problem. So you cannot just sit here and say, 'We're not going to do anything about it.' That's why this government is acting. It's no longer hidden. It's no longer isolated. It's happening in plain sight in our suburbs, on our streets and in our local communities.

When criminal activity reaches this level, when it begins to threaten lives, legitimate businesses and public safety, it becomes clear that stronger action is not just necessary; it is urgent. This is not a challenge that can be solved by one level of government or one state government alone. It is something whereby, if we're serious about this, we need to be equally serious about working together across the Commonwealth, states and territories with unified coordination.

It would be a real shame if this bill was not supported by every member of parliament, because, as I said, it's not about ideology. It's not about politics. It is about shutting down illegal businesses, shutting down organised crime and ensuring that the number of people addicted to tobacco does not go up. That is our No. 1 priority here. That's why this government is focused and clear. These so-called tobacco wars are not just about illegal cigarettes; they're about human people and human lives. I commend the bill to the House.

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