The amount of black-market tobacco in Australia has declined for the first time in five years, coinciding with a record number of seizures of illicit cigarettes.
Data from the Illicit Tobacco and E-cigarette Commission has revealed a 24 per cent drop in the volume of contraband product in circulation over the past financial year.
It follows five years of significant growth in the amount of illegal tobacco available on the market.
While the exact size of the black-market sector cannot be calculated, it is estimated to have shrunk by as much as 1438 tonnes.
Assistant Customs Minister Julian Hill said enforcement efforts were working.
“Every illicit cigarette seized, every store closed and every network disrupted sends the same message to criminals: we know who you are, we know how you operate, and we’re coming after you and your profits,” he said.
“The government’s investment in enforcement to crack down on illegal tobacco, along with public health measures to curb demand, is showing results.”
Australian Border Force figures show more than 730 tonnes of illegal tobacco have been seized in the first quarter of the current financial year, representing an all-time high.
The seizures included 3.75 million vapes, an increase of 18 per cent on the same time a year earlier.
Figures released in June by the Australian Bureau of Statistics showed 80 per cent of tobacco came from illegal sources in 2025.
High taxes attached to legal cigarettes have been blamed for the rise in the illegal tobacco market.
One Nation and the coalition have floated separate plans to lower tobacco excise by 75 and 80 per cent, respectively, to reduce the financial incentives to import and sell illicit products.
However, the federal government has rejected calls to lower the tax, saying it would lead to an increase in smoking rates.
A national group targeting illicit tobacco, led by the Australian Border Force, carried out more than 600 operations in its first year.
It seized more than 24 million illegal cigarettes and 3.6 tonnes of loose-leaf tobacco in 12 months.
Assistant commissioner Tony Smith said the illegal market had been disrupted.
“Our objective isn’t just to seize illicit tobacco; it is to create sustained pressure that disrupts criminal business models and changes the way offenders operate at every stage of the supply chain,” he said.
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