August Newsletter

Mary Aldred, Federal Member for Monash and I have now released our report from the Coalition Taskforce to Tackle Illegal Tobacco. As I've previously warned, organised crime has effectively taken control of Australia's tobacco market, creating a growing law and order crisis that requires urgent national action.

The report, The Illicit Tobacco Crisis in Australia, follows extensive consultation with retailers, police, economists, health experts and community stakeholders. The findings paint a troubling picture of an illicit market that is now undermining both public health objectives and public safety.

Nicotine consumption in Australia rose by around 40 per cent between 2017 and 2025, despite repeated increases in tobacco excise. At the same time, an estimated 80 per cent of the nicotine consumed by Australians now comes from illicit sources, with much of the market controlled by organised crime syndicates. The reality facing Australia can no longer be ignored.

It's time to dispense with the fantasy that the price of cigarettes in Australia is $50-$60 per packet. When up to 80% of the market is paying organised crime prices of $15-$20 per packet, that is the real price of cigarettes in Australia today.

Our report argues that enforcement efforts alone cannot solve the problem. While border agencies have made record seizures of illicit tobacco, organised crime groups continue to expand their operations. Criminal syndicates have also been linked to hundreds of violent incidents, including firebombings, extortion and intimidation.

Labor have let this issue extend far beyond smoking and public health policy.

We absolutely don't want people to smoke, but this is no longer just a smoking issue. It is about who controls a billion-dollar market in our economy: the Australian Government or organised crime?

To address the crisis, our report outlines eight key recommendations. Chief among them is a substantial reduction in tobacco excise, with a cut of up to 80 per cent proposed for consideration to break the business model that has made illicit tobacco so profitable.

Other recommendations include convening a National Cabinet meeting dedicated to illegal tobacco, strengthening cooperation between governments and law enforcement agencies, improving licensing and closure powers, establishing a regulated framework for legal vape sales, expanding public education campaigns, strengthening Australia Post inspection powers, and increasing enforcement against unlawful online tobacco and vape sales.

Stakeholders from across the community delivered a consistent message throughout the inquiry. Retailers, police, economists, doctors and public health advocates told us the same thing: Australia cannot police its way out of this.

The current strategy, to price people out of consumption, has been overtaken by criminal activity. Decisive action is needed.

Our central recommendation is blunt: drastically reduce the tobacco excise, and do it now, because until the price gap closes, no amount of enforcement alone will fix this catastrophic market failure.

The report will inform the Coalition's ongoing policy development as it works to restore control of Australia's tobacco market and combat the growing influence of organised crime.

You can read the report in full here [.pdf] 

The Coalition has announced plans to introduce legislation aimed at preventing taxpayer-funded carbon schemes from driving the conversion of productive agricultural land into carbon offset projects.

The move follows the controversial sale of Tasmania's 21,745-hectare Rushy Lagoon property to UK investment firm Gresham House for $142 million. The purchase was supported by a $69 million contribution from the Clean Energy Finance Corporation (CEFC), a government-backed investment body. The government, now an equity partner, also granted itself a further $8m in grant funding to establish the plantation.

Rushy Lagoon is Tasmania's largest agricultural enterprise and has become a focal point in the national debate about the impact of net zero policies on farming communities. Around 9,000 hectares of the property are expected to be converted to pine plantation, raising concerns about the loss of productive farmland, regional jobs and future food production.

Under the Coalition's proposal, the CEFC would be prohibited from funding or providing financial assistance to entities seeking to acquire Australian agricultural land for the purpose of establishing carbon offset projects.

Opposition Leader Angus Taylor said Australia's food security should take priority over taxpayer-backed carbon schemes that reduce the amount of land available for farming.

"When a farming family wants to expand, they should not have to compete with a foreign carbon fund backed by tens of millions of dollars from the Australian taxpayer," Mr Taylor said.

The Coalition argues that government policy should support farmers and regional communities, not subsidise investment funds to outbid agricultural producers for productive land.

The proposed legislation forms part of a broader plan to unwind Labor's net zero spending agenda and address what growing pressure on regional industries, food production and energy affordability.

For Tasmania, the debate has become particularly significant. The Rushy Lagoon sale has highlighted concerns that productive farming land could increasingly be diverted into carbon projects, with flow-on impacts for agricultural output, local employment and regional communities.

Our proposed legislation will help ensure productive farmland remains available for food and fibre production while protecting opportunities for future generations of Australian farmers.

Australia has passed a sobering economic milestone, with Commonwealth debt topping $1 trillion for the first time in the nation's history.

The debt burden is the result of Labor's spending decisions, and is contributing to higher inflation, increased living costs and a growing financial burden on future generations.

We are already paying the price. Interest payments on government debt are now running at around $27.7 billion every year, equating to more than $52,000 every minute.

Those interest costs come at a significant opportunity cost. The Coalition notes that $27.7 billion could instead fund more than 200,000 nurses, provide around 400,000 high-needs aged care packages, or deliver approximately $1,800 in tax relief for every Australian taxpayer.

The concern is particularly relevant for Tasmania, where families, retirees and small businesses continue to face pressure from rising household costs.

Government spending is now at its highest level outside the pandemic in more than four decades and is helping to keep inflation elevated.

Every dollar Labor borrows today is a bill being handed to the next generation to pay tomorrow.

There is also an obvious missed opportunity to improve the nation's finances. Since coming to office, the Government has received around $400 billion in revenue windfalls, the largest in Australia's history. Despite this, national debt has continued to rise and is forecast to increase by a further $250 billion over the next three years.

Under the fiscal settings inherited from the coalition government, combined with the revenue windfalls received over the past four years, Australia would have recorded surpluses rather than deficits, reducing debt instead of adding to it.

A coalition government will implement measures to restore budget discipline, including placing limits on government spending, capping the amount of tax governments can collect, and establishing a Future Generations Fund that would direct 80 cents of every commodity-price windfall dollar towards debt reduction and nation-building infrastructure.

For Tasmanians concerned about the rising cost of living, the debate ultimately comes down to a simple question: whether government should keep adding to the national credit card, or take steps to reduce debt and ease the burden on future generations.

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The coalition has a plan to fix the economy and protect our way of life. The Coalition will restore our standard of living and put Australians first.

Delivering cheaper and more reliable energy is our plan's second priority.

We will bring down power prices by increasing energy supply, strengthening fuel security and backing a broader mix of energy sources.

The plan comes as households and businesses continue to face rising energy costs, with electricity prices increasing by around 40 per cent in recent years.

Australia's abundant coal, gas and other energy resources should be used to deliver more affordable and reliable power for families, farmers and industry.

A Coalition Government would scrap Labor's net zero mandates, lift the ban on nuclear energy, and work to keep existing coal-fired generation operating for as long as it remains viable. Our plan would also support greater domestic gas supply and faster approvals for key energy projects.

For Tasmania and regional Australia, affordable and reliable energy remains critical for manufacturers, farmers, small businesses and households. Our approach will support an "all technologies" energy mix, including coal, gas, hydro, nuclear, batteries and renewables in appropriate locations, with the goal of putting downward pressure on electricity prices.

Our plan seeks to improve Australia's fuel security by doubling strategic fuel reserves to 60 days, backing more than one billion litres of additional fuel storage and encouraging investment in domestic fuel production and refining capacity.

Affordable energy is essential to economic growth, job creation and easing cost-of-living pressures. By increasing domestic energy production, reducing regulatory barriers and expanding supply, Australia can become an energy superpower once again while delivering cheaper power for households and businesses.

To find out more about our plan for energy, visit: Our Plan for Cheaper Power - Liberal Party of Australia