PRIVATE MEMBERS' BUSINESS

Ms PRICE (Durack) (12:31): I rise to speak in support of the motion moved by the member for Monash. Under the Albanese government, Australia's illicit tobacco market has become a serious organised crime problem. Gangs have flourished, making an estimated $4.1 billion to $6.9 billion, using the profits to fund drugs, scams, money laundering and violence.

This is not a problem confined to one city or one state; this is being felt right across Australia, including in regional Australia. Law-abiding small and family businesses are the targets of this criminal activity, whether it is through fire bombings and arson or simply just through a serious loss of revenue off cigarette sales. The economic impact on lawful businesses has been devastating.

Lawful retailers are being forced to compete against illicit tobacco sellers offering cigarettes for a fraction of the price of legal products. A legal packet of 20 cigarettes can cost more than $40, with around $31 of that price coming from tobacco excise. Meanwhile, illicit cigarettes can be sold for as little as $10 to $15 a packet.

That means legitimate retailers are being asked to compete with operators who don't pay the same taxes, don't comply with the same regulations and don't bear the same costs of doing business. This simply isn't a level playing field. It is legitimate small businesses that are paying the price.

I was told by a local business in Durack recently, who in just six months suffered a $200,000 weekly loss—that's $200,000 weekly loss in sales—this goes beyond just financials. It affects staffing. It affects foot traffic and the long-term viability of their business.

This is serious. Lawful retailers have always played by the rules. They've absorbed the excise increases.

They've updated their compliance practices and adhered to every legislative change yet they are being left exposed with no support, while illegal traders have monopolised the market. Nationally, the current system is bleeding the budget. In this year's budget, there has been a $41.9 billion collapse in revenue from tobacco excise.

Downgraded forecasts now reveal the government expects to collect the lowest tobacco excise this century, despite a 282 per cent increase in the excise rate since 2013. It is important to note that, beyond the financial impacts, the government has failed to arrest smoking rates. The current policy has failed Australians' health.

Tobacco consumption has increased by 30 per cent since the end of 2021. It is clear that we need an overhaul of the tobacco excise and law enforcement resourcing to combat illegal tobacco. These calls come not just from me and the member for Monash but from New South Wales Premier Chris Minns and former deputy Australian chief medical officer Dr Nick Coatsworth.

I'm very pleased to inform this House, as well as Premier Minns and Dr Coatsworth, that the Liberal Party does have a plan and has the policies to do just that. We will attack the gangs where it hurts—their profits. The tobacco excise will be cut by 80 per cent, reducing the excise on a packet of 20 cigarettes from $30 down to $6, stripping away the huge price advantage that is driving smokers into the black market.

This is on top of a nationwide $200 million law enforcement surge delivering more raids, arrests and seizures; shutting illegal shops; stopping shipments at the border; and following the money through the AFP, Border Force, ACIC and AUSTRAC. I have long believed— A division having been called in the House of Representatives— Sitting suspended from 12:35 to 12:45 Ms PRICE: I have long believed that the government's decision to implement a pharmacy-only model for nicotine vapes has not worked.

This move had only fuelled criminal activity and illegal vapes. That is why I support legislating, regulating and taxing vapes and nicotine pouches for adults only, to replace the failed black market. There is only one way to kill the illicit tobacco market and smash the gangs, and that is by taking away the gangs' price advantage and customers, then hitting the remaining criminals with the full force of the law.

The current government has let down our small businesses, the economy and the health system with the current policy settings. We need a better way forward, and it is being provided by the Liberal Party. I absolutely support this motion moved by the very excellent member for Monash, and implore others to do the same.