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Coalition Plans 80% Cut to Tobacco Excise, Legalises Vapes and Nicotine Pouches

WHY IT MATTERS

The excise cut will lower retail prices, likely increasing consumption, while legalising vapes and nicotine pouches could expand regulated sales and reduce illicit trade, affecting public health and tax revenue.

What happened

A future Coalition government has announced a plan to reduce the tobacco excise by 80 percent, effectively lowering the price of a pack by about $24. The proposal also includes legalising and taxing vaping products and nicotine pouches, expanding the regulated market. In addition, the government will strengthen law‑enforcement efforts to target the illicit trade of tobacco and related products. The policy aims to make legal nicotine products more affordable while curbing illegal sales, potentially reshaping the Australian nicotine market and public health landscape.

PRIMARY SOURCES

Coalition unveils plan to slash tobacco tax by $24 a pack

ABC News Australia · Clare Armstrong · Discovery only; ABC copyright terms apply

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