My question is to the Minister representing the Prime Minister, Senator Wong. This morning, Assistant Treasurer Daniel Mulino was asked on News24 about a reported tobacco related firebombing in his own electorate on the weekend. His response was, 'Look, I don't know about that.' How can Australians have confidence that the Albanese government understands the scale of the illicit tobacco crisis when a senior economic minister apparently does not even know about a tobacco related firebombing in his own community?

If I could, with your permission, President, just acknowledge the members of the Australian Defence Force Parliamentary Program. We thank you for your service, and we hope the program is proving interesting and not too cynical-making about the political process!

In relation to the tobacco issue, as I have said, first, the government understands very clearly that the illicit trade in cigarettes is putting public health at risk but also that it is an issue about organised crime. It is a serious organised crime crisis, and illicit tobacco is providing, as I said yesterday, a major source of funds for serious and organised crime which are being used to fund other serious harms and crimes.

We recognise a number of things. The first is that the only way for this black market to be stamped out is for the states and the federal government to work together. I note that the states regulate the sale of tobacco. I would also note that the government has increased our enforcement activity, I'm advised, by some $350 million and tripled the amount of product being intercepted at the borders.

This is a serious criminal issue. It is not only an issue of taxation; it is an issue around what organised crime has now done to create this infrastructure. Work must be done between the Commonwealth and the states and territories to confront it.

I appreciate that those opposite have a political point to make. I would make the point that tobacco excise increased in a time when those opposite were in government by more than 215 per cent, and it has increased by a little less than 40 per cent in the time we've been in government. So just to be— (Time expired)

Senator Duniam, first supplementary?

Minister, the government keeps hiking tobacco taxes. The legal market has collapsed. The black market has exploded. The gangs have made billions, and Australians are the ones facing gang violence. Now, even the New South Wales premier, Chris Minns, says that the policy is 'not working' and is driving people into the criminal market. How much more evidence does Labor need before it admits its own policy has helped organised crime thrive?

I again say to you, first, this is a criminal problem that requires states and territories and the governments to work together.

Oh, blame the state!

Well, it does. I would also remind those opposite that you supported a 215 per cent, in total, increase to the excise. In fact, in the debate on the bill that increased the price of cigarettes by taxation Senator Ruston talked how this is 'one of the most effective ways of reducing tobacco consumption and preventing the uptake of smoking'. That was Senator Ruston. Senator Hume said, 'The coalition is particularly proud of these bills, which will increase the tobacco excise.' She went on to say:

Some commentators suggest that tobacco control interventions … increase this illicit trade. There is, in fact, no reliable evidence that this is the case.

So I would make the point that this has been a policy that has had bipartisan support. (Time expired)

Senator Duniam, second supplementary?

Premier Minns also says that, while demand for illegal tobacco remains so strong because of current tax settings, it is 'very difficult' for police to permanently shut down organised crime gangs. Why is the Prime Minister refusing to act on this advice from even a Labor premier who says that this Commonwealth government's tax policy is making the job of police so much harder?

As I've said, the government has increased enforcement activity and provided additional funding of, I think, about $350 million. I also note that there have been different enforcement powers provided by both the Liberal government in Queensland and the South Australian government here, so both a—

No. The point is it's not a partisan issue. Look at what the Labor government in South Australia has done and the LNP government in Queensland has done. They have put in additional enforcement powers for their police and other enforcement authorities to shut down the shops and go after landlords, and I think that is an indication of the sort of leadership and cooperation that is required in order to confront this problem.