The purpose of the Combatting Illicit Tobacco Bill 2026 is to amend a number of Commonwealth Acts to expand law enforcement powers to investigate illicit tobacco related offending and increase the penalties and consequences for persons involved in illicit tobacco offending. This bills digest outlines the purpose and structure of the bill, the background, and the policy position of non-government parties/independents.

Tobacco is considered to be illicit when it is grown, manufactured and/or produced in Australia or where it is imported into the domestic market without customs or excise duties being paid. Illicit tobacco products may include cigarettes, cigars, loose tobacco or tobacco leaf and plant matter.

The tobacco excise seeks to make tobacco products less affordable, with the intention that it will reduce tobacco use in Australia. There have been recent calls to reduce the tobacco excise based on an argument that doing so ‘would stabilise the legal cigarette market’ which would subsequently curb the illicit tobacco market. However, the Government has rejected calls for a reduction in the tobacco excise.