The illicit tobacco market has been a cause for growing concern for law enforcement agencies over the past decade, both in Australia and globally. Illicit tobacco is an issue of key concern to law enforcement and health agencies in Australia as it undermines tobacco control policies designed to reduce rates of smoking, and involves organised criminal gangs in the importation, manufacturing and distribution of illicit tobacco products.

In order to better understand the nature of the illicit tobacco market and how the Australian Government should continue its efforts to reduce its size and prevalence, the Parliamentary Joint Committee for Law Enforcement (committee) commenced an inquiry on 2 December 2015. The inquiry lapsed with the dissolution of the 44th Parliament, and was reinitiated and lapsed again with the dissolution of the 45th Parliament. Within the 46th Parliament, the committee reinitiated the inquiry on 24 July 2019.

The terms of reference required the committee to examine the use and consequences of illicit tobacco in Australia, including the importation of contraband, counterfeit, and unbranded tobacco as well as domestically grown illicit tobacco. In particular, the committee examined:

(a) the nature, prevalence and culture of illicit tobacco use in Australia, including in indigenous, regional and non-English speaking communities;

(b) the role of Commonwealth law enforcement agencies in responding to the importation, use, manufacture, distribution and domestic growth of illicit tobacco;

(c) the loss of revenue to the Commonwealth arising from the consumption of illicit tobacco products;

(d) the involvement of organised crime, including international organised crime, in the importation, distribution and use of illicit tobacco in Australia;

(e) the effectiveness of relevant Commonwealth legislation; and

(f) other related issues.

This report presents and considers the problem, including how the illicit tobacco market and government responses to it have changed since the inquiry commenced, and presents the committee's findings and recommendations.