Big Tobacco's Growing Political Influence in Australia

• The tobacco industry is actively leveraging the rise of the illicit tobacco market to push for significant tax cuts, threatening Australian public health policy.
• Experts estimate the illicit tobacco market accounts for 50-60% of national consumption, resulting in an estimated annual tax loss of $7.7 billion-$11.8 billion.
• Enforcement is increasing, with new laws in Victoria allowing regulators to close retailers selling illicit tobacco for 90 days; 48 stores were shut in the first two weeks.

Lobbying and Lack of Transparency

• Tobacco companies have gained private, in-camera access to parliamentary inquiries, bypassing public scrutiny of their arguments for excise cuts.
• While federal lobbyist registration requirements exist, gaps remain; specifically, internal company lobbyists are not required to register, leaving their influence on policy hidden.
• A "revolving door" culture is prevalent, with 48% of internal tobacco lobbyists and 55% of third-party industry lobbyists having prior or subsequent experience in government roles.

Political Donations and Alignment

• Since 1998-99, the industry has donated over $2.5 million to political parties, with some parties like The Nationals continuing to accept significant funding.
• In 2024-25, The Nationals received $225,500 from major tobacco companies.
• Political parties receiving such donations frequently adopt policy platforms aligned with industry interests, such as vowing to slash tobacco excise by 75-80% and legalizing nicotine pouches.
• Health experts warn that reducing excise taxes to compete with illicit prices will increase overall affordability, likely reversing progress in national smoking prevalence, which currently sits at a record low of 5.6%.