Senate debates

Thursday, 16 August 2018

Bills

Treasury Laws Amendment (Illicit Tobacco Offences) Bill 2018; Second Reading

1:07 pm

Photo of Deborah O'NeillDeborah O'Neill (NSW, Australian Labor Party, Shadow Assistant Minister for Innovation) Share this | Hansard source

Labor supports the Treasury Laws Amendment (Illicit Tobacco Offences) Bill 2018 and condemns the coalition for still receiving tobacco donations. The measures in schedule 1 of the bill amend several acts to create a new illicit tobacco offence regime following the announcement by the Treasurer in the 2016-17 budget on 3 May 2016. According to the explanatory memorandum, the government's committed to reducing the harmful effects of tobacco consumption. This bill supports the National Tobacco Strategy 2012-18, endorsed by all Australian health ministers, to reduce the affordability of tobacco products, and the World Health Organization's Framework Convention on Tobacco Control, which commits nations to implement policies on tobacco prices and tax increases.

As part of the 2016-17 budget the government committed to reform the excise and customs acts to provide enforcement agencies with access to tiered offences with appropriate penalties to increase the range of enforcement options available for illicit tobacco offences. Tobacco and tobacco-duty-related offences are currently administered by the Australian Taxation Office—tobacco produced or manufactured in Australia under the Excise Act, and the Department of Home Affairs excise-equivalent customs duty on imported tobacco under the Customs Act.

The offences in this bill remove complications that arise from whence the illicit tobacco came and deal with the substantive issue of possession and trading of illicit tobacco. In the 2016-17 budget the government adopted Labor's policies to increase excise and excise-equivalent duties on tobacco. Although higher excise and excise-equivalent customs duty rates for tobacco improve the health of Australians by discouraging tobacco consumption and reducing their exposure to tobacco products, they increase the risk of illicit tobacco being produced or manufactured domestically or imported into Australia.

Labor supports this bill. I do, however, want to make some brief remarks about credibility and tobacco donations. It is a matter of fact that the coalition continues to receive tobacco donations—something that Labor does not. This, and the lack of credibility the government has on reducing smoking-related illnesses and deaths, should be emphasised in the second reading debate. As my colleague in the other place the shadow Assistant Treasurer said, the coalition is yet to kick the habit. The coalition continues to accept donations from big tobacco. The Australian Electoral Commission returns from 2015-16 show that the sum of $14,940 was given by big tobacco to the National Party of Australia. The returns from 2016 show that the sum of $15,700 was received by the National Party of Australia. I seek leave to table the Australian Electoral Commission returns showing these tobacco donations.

Leave granted.

The Prime Minister needs to explain why he thinks it is acceptable for his coalition partners to fill their coffers with donations from an industry that profits from a product that, if used according to directions, will kill more than half of its users. While these donations continue, Senator McKenzie's position as the Minister for Rural Health is completely untenable. Smoking is the single highest preventable cause of ill-health and death in Australia, accounting for more than 15,000 deaths each year. The likelihood of being a daily smoker is up to twice as high in rural and remote Australia as it is in metropolitan Australia. Yet the National Party continues to accept money from big tobacco despite the additional harm that smoking related deaths do in regional and rural Australia.

By contrast, it is Labor's longstanding policy not to accept donations from tobacco companies, a position that is reflected in our national platform. Labor introduced and fought for world-leading plain-packaging legislation which, combined with other policies, has seen the adolescent smoking rate drop to a record low. I was here in this place watching how the coalition behaved as that plain-packaging legislation made its way through. You could see clearly, and early on, that they wanted to vote against it. They were doing their level best to square up to vote down plain packaging. In the end, after a great deal of delay, they finally did the right thing. But they had to be dragged kicking and screaming to a point of supporting plain-packaging laws which are now being looked at by countries around the world who are asking themselves: how do we reduce smoking rates in our country too?

This is a government that lacks credibility on tackling big tobacco. The measures in this bill today, however, are uncontroversial, and this bill will receive Labor's support. But we do urge the coalition to do the right thing and stop accepting tobacco donations.

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