Albo’s new tax on ciggies: Next week’s Budget will include THREE more tobacco tax hikes in a row
- Price hikes will raise $3.3billion in revenue
- The first rise comes in on September 1
The Albanese government has announced three tobacco price hikes will be in next week’s Federal Budget – raising $3.3billion in revenue – and a ban on recreational vaping.
‘Tax on tobacco will be increased by 5 per cent per year over the next three years starting on September 1,’ Health Minister Mark Butler said on Tuesday afternoon.
‘We know that a higher price cigarette is a more unattractive cigarette. We will also align the tax treatment of tobacco products so that products like roll your own tobacco and manufactured sticks are taxed equally.
Mr Butler said the changes will raise an additional $3.3billion over the coming four years, including $290million in GST payments to the states and territories.
He said it would help ‘to support our health system and the health of current and former smokers and vapers’.
The Albanese government has announced three tobacco price hikes will be in next week’s Federal Budget, raising $3.3billion in revenue. A woman is pictured smoking
The Minister said the previous Coalition government increased tobacco excise by around 125 per cent during its term in government.
‘Excise had stopped increasing in about 2020 and since that time, excise increases have actually started to lag inflation, particularly last year,’ he said.
‘We are determined not to see the price of cigarettes start to become more attractive as against CPI (inflation).’
Mr Butler said the Labor government was seeking to continue the ‘price signal that (former Labor health minister) Nicola Roxon argued so persuasively and comprehensive 10 years ago.’
Recreational vaping will be banned as the government seeks to prevent the next generation of nicotine addicts.
The government will work with the states and territories to shut down the sale of vapes in retail and convenience stores, while making it easier to get a prescription for therapeutic use.
To tackle the growing black market, the government will increase the product standards for vapes, including by restricting flavours and colours.
It will require pharmaceutical-like packaging, a reduction in the allowed nicotine concentrations and volumes, and a ban on single-use vapes.
Mr Butler revealed the scale of the public health issue, with children under the age of four having been reported to Victoria’s poisons hotline after they used a vape.
‘This is a product targeted at our kids, sold alongside lollies and chocolate bars,’ he said.
‘Vaping has become the number one behavioural issue in high schools, and it’s becoming widespread in primary schools. This must end.’
Health Minister Mark Butler said ‘Tax on tobacco will be increased by 5 per cent per year over the next three years starting on September 1.’ Pictures are previous tobacco excise increases
More to come…