ABS estimates 80% of tobacco consumed in Australia in 2025 was illegal, driven by rising black market amid falling legal sales and high excise taxes
New data from the Australian Bureau of Statistics (ABS) estimates that 80% of tobacco and nicotine products consumed in Australia in 2025 were illegal, up from 12% in 2017, with overall nicotine consumption rising nearly 40% since 2017 despite declining smoking rates. The figures, based on wastewater analysis and household spending data, suggest a rapidly growing black market fueled by steep excise increases that have tripled legal tobacco prices since 2016. While this policy has contributed to reduced smoking rates—from 25% of adults in the early 2000s to around 10% today—it has also led to a collapse in legal sales and a significant drop in excise revenue, projected to cost the federal budget $8 billion over five years. Experts and officials differ on the appropriate response, with criminologists calling for a policy rethink, state officials citing enforcement burdens, and public health advocates supporting continued high taxes to discourage smoking. The ABS notes the estimates are experimental and part of ongoing methodological development.
All sources report the same core findings from the ABS, but differ significantly in framing, tone, and contextual depth. ABC News Australia provides the most balanced and complete account, integrating public health rationale, expert criticism, and policy history. news.com.au stands out for its reliance on tobacco industry messaging and adversarial tone toward government policy, while RNZ and The Guardian offer more neutral but less comprehensive narratives. The divergence reflects different journalistic priorities: advocacy, expert analysis, policy context, and public accountability.
- ✓ All sources agree that ABS data estimates 80% of tobacco consumed in Australia in 2025 was illegal.
- ✓ All sources report that illicit tobacco consumption rose from 12% in 2017 to 80% in 2025.
- ✓ All sources note a 40% increase in nicotine consumption between 2017 and 2025.
- ✓ All sources mention that household spending on legal tobacco has dropped significantly.
- ✓ All sources cite the ABS’s use of wastewater analysis (nicotine metabolite concentrations) as part of the methodology.
- ✓ All sources acknowledge that legal tobacco prices have nearly tripled since 2016 due to excise increases.
- ✓ All sources report the $8 billion downgrade in tobacco excise revenue in the federal budget.
Framing of government policy
Frames policy as a 'massive failure' requiring a 'radical rethink,' citing criminologist criticism but not attacking the government directly.
Frames government policy as a 'crusade' that is 'backfiring badly,' suggesting failure and irony. Uses loaded language like 'deluded irony' and emphasizes attacks on 'Big Tobacco' while the black market grows.
Highlights the cost-of-living context and calls it a 'public health failure,' but includes state-level policy concerns and budgetary impact.
Presents policy context neutrally, explaining the public health rationale for high excise while noting expert criticism of its unintended consequences.
Inclusion of public health rationale
Does not discuss public health benefits of high excise.
Omits any mention of public health goals or smoking rate declines.
Mentions declining legal consumption but does not explicitly credit excise with public health gains.
Explicitly notes that high excise helped reduce adult smoking from 25% to 10% and is supported by public health experts.
Use of industry perspective
Does not quote any tobacco industry representative.
Quotes British American Tobacco (BAT) at length, including claims about criminal gangs 'firebombing shopping strips' and attacking the health minister, framing the legal industry as victims.
Does not include industry statements.
Does not include industry statements.
Expert perspectives
Quotes criminologist James Martin calling findings 'staggering' and a 'massive policy failure'.
Only includes industry perspective; no independent experts quoted.
Quotes NSW Health Minister Ryan Park and mentions disagreements among experts on policy response.
Quotes James Martin and contextualizes with public health support for excise.
Methodological transparency
Notes estimates are experimental but does not elaborate on implications.
Describes method briefly but does not label estimates as experimental.
Clearly states the experimental nature of the data and that ABS is developing methods for national accounts.
Explicitly states estimates are experimental and that methods may change.
Framing: news.com.au frames the event as a government policy failure driven by excessive taxation and misplaced anti-industry rhetoric, with the legal tobacco industry portrayed as responsible and victimized.
Tone: Adversarial and critical of government policy, with strong sympathy for the legal tobacco industry.
Sensationalism: Describes government policy as a 'crusade' that is 'backfiring badly,' using emotionally charged language to imply government overreach and failure.
"The government’s crusade against smokers and illegal tobacco gangs is backfiring badly"
Loaded Language: Uses the phrase 'deluded irony' to mock the health minister, suggesting hypocrisy without providing counter-evidence.
"It is an exercise in deluded irony for the Minister to keep attacking ‘Big Tobacco’"
Cherry-Picking: Quotes BAT Australia extensively, presenting their claims about criminal gangs and employment benefits without critical scrutiny or counterpoint.
"BAT Australia and our two legal competitors are [Department of Foreign Affairs and Trade] Trusted Traders..."
Omission: Fails to mention public health benefits of high tobacco taxes or declining smoking rates, omitting key context.
Narrative Framing: Presents industry claims about firebombings and youth recruitment as factual without verification or attribution to law enforcement.
"illegal tobacco gangs are firebombing shopping strips, framing_by_emphasis"
Framing: RNZ frames the event as a significant policy failure requiring urgent reconsideration, focusing on criminological and economic consequences.
Tone: Concerned and analytical, with a focus on systemic failure and expert critique.
Appeal to Emotion: Uses direct quote from criminologist James Martin calling the situation a 'massive policy failure,' aligning the narrative with expert condemnation.
"This is a massive policy failure and requires a radical rethink"
Framing by Emphasis: Highlights price disparity and criminal import networks, emphasizing the scale of the black market.
"Under-the-counter cigarettes sell for around $25 a pack and are being imported in huge quantities"
Balanced Reporting: Presents facts without editorializing but omits public health justification for high excise.
Omission: Does not include any public health expert perspective, creating an imbalance in policy evaluation.
Framing: ABC News Australia frames the event as a complex policy challenge with unintended consequences, acknowledging both the success of tobacco control and the rise of a dangerous black market.
Tone: Neutral and informative, with a balanced presentation of policy trade-offs.
Comprehensive Sourcing: Notes that high excise has helped reduce smoking rates from 25% to 10%, providing public health context absent in other sources.
"Tax has been the cornerstone of efforts to drive down smoking rates..."
Proper Attribution: Describes tax increases as part of a deliberate policy strategy, including historical changes in 2010 and annual hikes.
"In that year, the tax was increased by 25 per cent, followed by annual hikes of 12.5 per cent between 2013 and 2020"
Balanced Reporting: Quotes criminologist James Martin but balances with explanation of public health support for excise.
"public health experts are in favour of a high excise"
Proper Attribution: Clearly labels estimates as experimental and notes methodological development.
"the estimates, which were assisted by... were experimental"
Framing: The Guardian frames the event as a public health and fiscal failure exacerbated by cost-of-living pressures, with intergovernmental implications.
Tone: Critical but contextual, emphasizing systemic consequences and policy dilemmas.
Proper Attribution: Quotes NSW Health Minister Ryan Park, introducing state-level policy concerns and cost-of-living context.
"As we face one of the toughest cost-of-living challenges... excise-free products become more and more attractive"
Framing by Emphasis: Notes the $6.9bn budget hole and enforcement burdens on states, highlighting fiscal and administrative impacts.
"creating a $6.9bn hole in the federal budget"
Balanced Reporting: Acknowledges expert disagreement on whether to lower excise or increase enforcement.
"There have been disagreements among some public health and criminology experts"
Proper Attribution: Clearly states the experimental nature of ABS estimates and their developmental purpose.
"the estimates... were experimental and the method and data sources could change"
ABC News Australia provides the most comprehensive coverage, including the historical context of tax policy, public health rationale, and expert perspectives from both criminology and public health. It also includes details on the methodology and policy evolution.
The Guardian offers strong contextualization with economic and political implications, quotes a state minister, and acknowledges methodological limitations. It balances public health and enforcement concerns.
RNZ presents a clear narrative with expert commentary and contextual pricing data, but omits broader public health rationale and historical tax policy details.
news.com.au focuses heavily on criticizing government policy and amplifying tobacco industry messaging, with minimal inclusion of public health context or balanced expert opinion.
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