I'll now deal with the Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026. I will first deal with the second reading amendment circulated by One Nation. The question is that the amendment on sheet 4187 be agreed to.

One Nation 's circulated amendment

At the end of the motion, add ", but the Senate:

(a) notes that:

(i) organised crime now accounts for up to 80% of sales of tobacco products,

(ii) law enforcement is overwhelmed by the scale of the industry leading to widespread violence and property damage,

(iii) law-abiding citizens and small businesses in proximity to illicit tobacco outlets are in physical and financial danger,

(iv) organised crime is facilitating cigarette sales to children, and

(v) the very high rate of tobacco excise has broken the compact between government and the public to each treat the other fairly; and

(b) calls on the Albanese Government to:

(i) reduce the excise rate of tobacco products by 75%, effective immediately,

(ii) maintain the lower rate until organised crime has been controlled,

(iii) cancel indexation of the excise rate for three years,

(iv) direct the eSafety Commissioner to use their existing powers to take down websites offering direct sales of illicit tobacco products, and

(v) once organised crime has been controlled, return tobacco excise to a more sensible level as provided under recommendation 2 of the Legal and Constitutional Affairs References Committee's report of its inquiry into the illegal tobacco crisis in Australia".

The question now is that the bill be read a second time.

Question agreed to.

Bill read a second time.

I will now deal with the Committee of the Whole amendment circulated by the opposition. The question is that the amendments on sheet 4142 be agreed to.

(1) Title, page 1 (lines 1 and 2), omit "Customs Act 1901and theProceeds of Crimes Act 2002", substitute "law relating to tobacco and the proceeds of crime".

(2) Clause 2, page 2 (table item 4), omit "Schedule 6", substitute "Schedules 6 and 7".

(3) Page 50 (after line 17), at the end of the Bill, add:

Schedule 7 — Reduction of tobacco customs and excise duties

Customs Tariff Act 1995

1 After section 19ACA

Insert:

19ACD Reduction of tobacco duty rates

(1) Despite anything else in this Act, each tobacco duty rate is taken, on the day (the commencement day) on which this section commences, to be replaced with a rate that is 20% of the tobacco duty rate on the day before the commencement day.

Treatment of indexation

(2) To avoid doubt:

(a) in working out, for the purposes of subsection (1), a particular tobacco duty rate on the day before the commencement day, take into account any replacement of that rate that occurs before the commencement day under section 19AB; and

(b) for the purposes of applying section 19AB in relation to the first indexation day that occurs after the commencement day, subsection (1) of this section applies when working out the tobacco duty rate on the day before that indexation day.

(3) If the commencement day would, apart from this subsection, be an indexation day under section 19AB then, for the purposes of applying section 19AB, the commencement day is not to be treated as an indexation day.

Effect on other rates for tobacco

(4) To avoid doubt, subsection (1) of this section applies for the purposes of determining an applicable rate under section 19ACA.

Which goods?

(5) This section applies in relation to goods that are entered for home consumption on or after the commencement day.

Definitions

(6) In this section:

commencement day has the meaning given by subsection (1).

tobacco duty rate means a rate of duty that is a tobacco duty rate for the purposes of section 19AB (see section 19AC).

Excise Tariff Act 1921

2 After section 6AAC

Insert:

6AAD Reduction of duties of excise on tobacco

(1) Despite anything else in this Act, the rate of duty applicable under subitem 5.1 of the Schedule is taken, on the day (the commencement day) on which this section commences, to be replaced with a rate that is 20% of the rate of duty applicable under that item on the day before the commencement day.

Treatment of indexation

(2) To avoid doubt:

(a) in working out, for the purposes of subsection (1), the rate of duty applicable under subitem 5.1 of the Schedule on the day before the commencement day, take into account any replacement of that rate that occurs before the commencement day under section 6AA of this Act; and

(b) for the purposes of applying section 6AA of this Act in relation the first indexation day that occurs after the commencement day, subsection (1) of this section applies when working out the tobacco duty rate (within the meaning of section 6AA) on the day before that indexation day.

(3) If the commencement day would, apart from this subsection, be an indexation day under section 6AA then, for the purposes of applying section 6AA in relation subitem 5.1 of the Schedule, the commencement day is not to be treated as an indexation day.

Effect on other rates for tobacco

(4) To avoid doubt, subsection (1) of this section applies when determining the rate of duty applicable under subitem 5.1 of the Schedule for the purposes of applying sections 6AAB and 6AAC.

Which goods?

(5) This section applies in relation to goods that are entered for home consumption on or after the commencement day.

(6) In this section:

commencement day has the meaning given by subsection (1).

The question is that the amendments circulated by the Australian Greens on sheet 4173 be agreed to.

Australian Greens' circulated amendment s

(1) Clause 2, page 2 (table item 4), omit "Schedule 6", substitute "Schedules 6 and 8".

(2) Page 50 (after line 17), at the end of the Bill, add:

Schedule 8 — Mandatory track and trace scheme for tobacco products

Public Health (Tobacco and Other Products) Regulations 2024

1 Subsection 50(2)

Repeal the subsection.

2 Sections 54 and 55

Repeal the sections.

3 After paragraph 87(2)(i)

Insert:

(j) a primary packaging track and trace identifier (see section 96A);

(k) a secondary packaging track and trace identifier (see section 96B).

4 At the end of Part 3.8

Add:

96A Mandatory marking — primary packaging track and trace identifiers

Cigarette packs

(1) A primary packaging track and trace identifier on a cigarette pack must:

(a) appear only once on the cigarette pack; and

(b) appear on only one of the following surfaces:

(i) the side outer surface of the pack on which a health warning is not displayed;

(ii) the bottom outer surface of the pack;

(iii) the top outer surface of the pack; and

(c) to the extent that the track and trace identifier is an alphanumeric code—be printed:

(i) in an English sans serif typeface; and

(ii) in normal weighted regular font; and

(iii) in black, white or grey; and

(d) to the extent that the track and trace identifier is a machine-readable code—be printed in black, white or grey; and

(e) be printed on a background that is the colour known as Pantone 448C.

Primary packaging of tobacco products other than cigarette packs

(2) A primary packaging track and trace identifier on the primary packaging of a tobacco product other than a cigarette pack:

(a) must appear only once on the packaging; and

(b) must either:

(i) be included on an adhesive label attached firmly to the packaging so as not to be easily removable; or

(ii) be printed on the packaging; and

(c) to the extent that the track and trace identifier is an alphanumeric code—must be printed:

(i) in an English sans serif typeface; and

(ii) in normal weighted regular font; and

(iii) in black, white or grey; and

(d) to the extent that the track and trace identifier is a machine-readable code—must be printed in black, white or grey; and

(e) if subparagraph (b)(ii) applies—must be printed on a background that is the colour known as Pantone 448C; and

(f) may appear on the outer surface of the packaging on which a health warning is displayed.

Adhesive labels

(3) An adhesive label mentioned in subparagraph (2)(b)(i) must:

(a) be transparent and not coloured; or

(b) be the colour known as Pantone 448C.

96B Mandatory marking — secondary packaging track and trace identifiers

Cigarette cartons

(1) A secondary packaging track and trace identifier on a cigarette carton must:

(a) appear only once on the carton; and

(b) appear only on a single side outer surface of the carton on which a health warning is not displayed; and

(c) either:

(i) be included on an adhesive label attached firmly to the carton so as not to be easily removable; or

(ii) be printed on the carton; and

(d) to the extent that the track and trace identifier is an alphanumeric code—be printed:

(i) in an English sans serif typeface; and

(ii) in normal weighted regular font; and

(iii) in black, white or grey; and

(e) to the extent that the track and trace identifier is a machine-readable code—be printed in black, white or grey; and

(f) be printed on a background that is the colour known as Pantone 448C.

Secondary packaging of tobacco products other than cigarette cartons

(2) A secondary packaging track and trace identifier on the secondary packaging of a tobacco product other than a cigarette carton:

(a) must appear only once on the packaging; and

(b) must either:

(i) be included on an adhesive label attached firmly to the packaging so as not to be easily removable; or

(ii) be printed on the packaging; and

(c) to the extent that the track and trace identifier is an alphanumeric code—must be printed:

(i) in an English sans serif typeface; and

(ii) in normal weighted regular font; and

(iii) in black, white or grey; and

(d) to the extent that the track and trace identifier is a machine-readable code—must be printed in black, white or grey; and

(e) if subparagraph (b)(ii) applies—must be printed on a background that is the colour known as Pantone 448C; and

(f) may appear on the outer surface of the packaging on which a health warning is displayed.

Adhesive labels

(3) An adhesive label mentioned in subparagraph (1)(c)(i) or (2)(b)(i) must:

(a) be transparent and not coloured; or

(b) be the colour known as Pantone 448C.

5 Paragraph 103(a)

Omit "Part 3.5", substitute "Part 3.8".

6 Application

The amendments of the Public Health (Tobacco and Other Products) Regulations 2024 made by this Schedule apply on or after commencement.

The question is that the remaining stages of the bill be agreed to and the bill be now passed.

Question agreed to.

Bill read a third time.