Is the excise on tobacco working? Host criticises measure

It’s surprising how expensive some things can be in Australia.

But, for American band Motley Crue drummer Tommy Lee, the surprise was more than most.



Tommy Lee was touring in Australia and decided to go to a 7-Eleven in Melbourne to buy a pack of cigarettes. Upon seeing the price of a packet of cigarettes on the receipt, he was in disbelief that a Marlboro Gold 25s cost $62.99.

‘$251.96 for 4 packs of smokes here in Melbourne!!!’ he said, sharing his disbelief on social media.

To drill his point home, he even took a shot at the convenience store’s tagline: ‘7/11 wonderfully cheesier!’

It was a huge difference from the cost of a cigarette pack in the United States, which is around $12 AUD.


reza-mehrad-wQv94mB3TcY-unsplash.jpg
Tommy Lee’s shocking cigarette purchase receipt reveals the existing tobacco excise in Australia. Credit: Unsplash



The incident caught the attention of Caleb Bond, the host of Sky News Australia’s The Late Debate.

‘Despite the vast chasm in cost, the difference between the rates of smoking in Australia and the US is negligible,’ he said.

‘In 2021 it was 10.1 per cent and 11.5 per cent of adults respectively.’

‘It has nothing to do with health and everything to do with squeezing as much money out of you as possible.’

He then pointed to figures from the Australian Tax Office, which revealed that there has been a decrease of 34 per cent in the tobacco market between 2015-16 and 2020-21.

‘At the same time, the tax collected on tobacco increased 43.7 per cent,’ he said. Bond also took aim at the growth of the illegal tobacco market at the expense of above-board growth in retailers.

‘Woolworths reported in its latest annual report that its sales of tobacco dipped 16 per cent at the same time as importation of illegal cigarettes went through the roof,’ he said.

‘So despite the entire cigarette market shrinking and illegal, untaxed cigarettes growing in popularity among smokers, the government still takes home more in tax—to the tune of $14.26 billion.’

This led Bond to a conclusion: the excise tax might not be as effective as it’s thought to be.

He said, ‘If the proportion of the population that smokes in Australia and the US can be so similar despite the fact it costs so much more here, then it is clear that the extortionate excise does little to discourage smoking.’

‘It just lines the pockets of the federal government at the expense of people who are often already disadvantaged..’



Bond also compared the issue of alcohol, with $20 from each slab of beer going to the government. As a result, Australia has the fourth-highest beer tax in the world and the third-highest spirits tax.

‘Tobacco is a legal product. And despite all the window dressing, the government needs smokers for all the tax they generate,’ he said.

He added that, ‘The health-related information on smoking is readily available. That is largely what has driven the long-term reduction in smoking.’

‘But some people want to smoke and continue to smoke. That’s their business. If it brings them some pleasure in life, then butt out of their business.’

Meanwhile, the Australian Government continues to take steps to reduce smoking in the country.

According to Health and Aged Care Minister Mark Butler, the government is seriously tackling the problem, as they are looking to reduce the number of smokers by half by 2030. Last December, he mentioned their next step to achieve the goal.

‘We know that the tobacco industry has innovated by trying to make individual sticks or individual cigarettes more attractive, more marketable, in the plain packaging,’ he said.

‘I want to see a discussion about colours that make [cigarettes] unattractive, about dissuasive messages on individual sticks, which the Canadian government has just indicated they‘re going to go forward with.’

Key Takeaways
  • Tommy Lee, Motley Crue drummer, recently expressed shock at Australia's high cigarette prices, after being charged $62.99 for a packet of Marlboro Gold 25s at a Melbourne 7-Eleven.
  • Despite the high cost of cigarettes in Australia compared to the US, the rates of smoking in both countries are very similar, with 10.1 per cent and 11.5 per cent of adults respectively.
  • Despite the shrinking cigarette market, untaxed cigarettes are still growing in popularity among smokers, the Australian government still collects more in tax, providing a revenue of $14.26 billion.
  • Caleb Bond suggests that the high cost of cigarettes in Australia is not effective in discouraging smoking, but simply lines the pockets of the federal government, with smokers often being already disadvantaged individuals.

Members, have you also encountered high prices of cigarettes? Do you think tobacco excise is effective in reducing the number of smokers? Share your thoughts in the comments below!
 
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It’s surprising how expensive some things can be in Australia.

But, for American band Motley Crue drummer Tommy Lee, the surprise was more than most.



Tommy Lee was touring in Australia and decided to go to a 7-Eleven in Melbourne to buy a pack of cigarettes. Upon seeing the price of a packet of cigarettes on the receipt, he was in disbelief that a Marlboro Gold 25s cost $62.99.

‘$251.96 for 4 packs of smokes here in Melbourne!!!’ he said, sharing his disbelief on social media.

To drill his point home, he even took a shot at the convenience store’s tagline: ‘7/11 wonderfully cheesier!’

It was a huge difference from the cost of a cigarette pack in the United States, which is around $12 AUD.


View attachment 35092
Tommy Lee’s shocking cigarette purchase receipt reveals the existing tobacco excise in Australia. Credit: Unsplash



The incident caught the attention of Caleb Bond, the host of Sky News Australia’s The Late Debate.

‘Despite the vast chasm in cost, the difference between the rates of smoking in Australia and the US is negligible,’ he said.

‘In 2021 it was 10.1 per cent and 11.5 per cent of adults respectively.’

‘It has nothing to do with health and everything to do with squeezing as much money out of you as possible.’

He then pointed to figures from the Australian Tax Office, which revealed that there has been a decrease of 34 per cent in the tobacco market between 2015-16 and 2020-21.

‘At the same time, the tax collected on tobacco increased 43.7 per cent,’ he said. Bond also took aim at the growth of the illegal tobacco market at the expense of above-board growth in retailers.

‘Woolworths reported in its latest annual report that its sales of tobacco dipped 16 per cent at the same time as importation of illegal cigarettes went through the roof,’ he said.

‘So despite the entire cigarette market shrinking and illegal, untaxed cigarettes growing in popularity among smokers, the government still takes home more in tax—to the tune of $14.26 billion.’

This led Bond to a conclusion: the excise tax might not be as effective as it’s thought to be.

He said, ‘If the proportion of the population that smokes in Australia and the US can be so similar despite the fact it costs so much more here, then it is clear that the extortionate excise does little to discourage smoking.’

‘It just lines the pockets of the federal government at the expense of people who are often already disadvantaged..’



Bond also compared the issue of alcohol, with $20 from each slab of beer going to the government. As a result, Australia has the fourth-highest beer tax in the world and the third-highest spirits tax.

‘Tobacco is a legal product. And despite all the window dressing, the government needs smokers for all the tax they generate,’ he said.

He added that, ‘The health-related information on smoking is readily available. That is largely what has driven the long-term reduction in smoking.’

‘But some people want to smoke and continue to smoke. That’s their business. If it brings them some pleasure in life, then butt out of their business.’

Meanwhile, the Australian Government continues to take steps to reduce smoking in the country.

According to Health and Aged Care Minister Mark Butler, the government is seriously tackling the problem, as they are looking to reduce the number of smokers by half by 2030. Last December, he mentioned their next step to achieve the goal.

‘We know that the tobacco industry has innovated by trying to make individual sticks or individual cigarettes more attractive, more marketable, in the plain packaging,’ he said.

‘I want to see a discussion about colours that make [cigarettes] unattractive, about dissuasive messages on individual sticks, which the Canadian government has just indicated they‘re going to go forward with.’

Key Takeaways

  • Tommy Lee, Motley Crue drummer, recently expressed shock at Australia's high cigarette prices, after being charged $62.99 for a packet of Marlboro Gold 25s at a Melbourne 7-Eleven.
  • Despite the high cost of cigarettes in Australia compared to the US, the rates of smoking in both countries are very similar, with 10.1 per cent and 11.5 per cent of adults respectively.
  • Despite the shrinking cigarette market, untaxed cigarettes are still growing in popularity among smokers, the Australian government still collects more in tax, providing a revenue of $14.26 billion.
  • Caleb Bond suggests that the high cost of cigarettes in Australia is not effective in discouraging smoking, but simply lines the pockets of the federal government, with smokers often being already disadvantaged individuals.

Members, have you also encountered high prices of cigarettes? Do you think tobacco excise is effective in reducing the number of smokers? Share your thoughts in the comments below!
The price is getting to expensive to smoke. Maybe the cigarette companies should make half sized cigarettes
 
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Reactions: Jo Piper3
I enjoy the occasional cigar, and have been sourcing them from overseas.
Mainly because the selection is much greater than what's available here.
I have watched the duty increase every year to the current price of $1,842 per kilogram of tobacco.
The duty costs upward of twice the price of the cigars and postage.
The collection of this is down to Australian Border Force, who also have to police the increase in blackmarket tobacco.
A draconian measure by small minded politicians stirred by a noisy minority!
 
Unfortunately the availability of illegal tobacco has become so widespread and it would seem that smokers are flocking to the appropriate suppliers. This of course means that there is zero tax being reaped by the government and the effect of people giving up is negligible. I hate the smell of cigarette smoke and so I banish my friends outdoors when they visit. They do say they are going to give up and I have seen a couple of them do it. I think most smokers want to give up but it is very difficult especially if they are surrounded by other smokers. All we can do is try to encourage them to stop.
 
It’s surprising how expensive some things can be in Australia.

But, for American band Motley Crue drummer Tommy Lee, the surprise was more than most.



Tommy Lee was touring in Australia and decided to go to a 7-Eleven in Melbourne to buy a pack of cigarettes. Upon seeing the price of a packet of cigarettes on the receipt, he was in disbelief that a Marlboro Gold 25s cost $62.99.

‘$251.96 for 4 packs of smokes here in Melbourne!!!’ he said, sharing his disbelief on social media.

To drill his point home, he even took a shot at the convenience store’s tagline: ‘7/11 wonderfully cheesier!’

It was a huge difference from the cost of a cigarette pack in the United States, which is around $12 AUD.


View attachment 35092
Tommy Lee’s shocking cigarette purchase receipt reveals the existing tobacco excise in Australia. Credit: Unsplash



The incident caught the attention of Caleb Bond, the host of Sky News Australia’s The Late Debate.

‘Despite the vast chasm in cost, the difference between the rates of smoking in Australia and the US is negligible,’ he said.

‘In 2021 it was 10.1 per cent and 11.5 per cent of adults respectively.’

‘It has nothing to do with health and everything to do with squeezing as much money out of you as possible.’

He then pointed to figures from the Australian Tax Office, which revealed that there has been a decrease of 34 per cent in the tobacco market between 2015-16 and 2020-21.

‘At the same time, the tax collected on tobacco increased 43.7 per cent,’ he said. Bond also took aim at the growth of the illegal tobacco market at the expense of above-board growth in retailers.

‘Woolworths reported in its latest annual report that its sales of tobacco dipped 16 per cent at the same time as importation of illegal cigarettes went through the roof,’ he said.

‘So despite the entire cigarette market shrinking and illegal, untaxed cigarettes growing in popularity among smokers, the government still takes home more in tax—to the tune of $14.26 billion.’

This led Bond to a conclusion: the excise tax might not be as effective as it’s thought to be.

He said, ‘If the proportion of the population that smokes in Australia and the US can be so similar despite the fact it costs so much more here, then it is clear that the extortionate excise does little to discourage smoking.’

‘It just lines the pockets of the federal government at the expense of people who are often already disadvantaged..’



Bond also compared the issue of alcohol, with $20 from each slab of beer going to the government. As a result, Australia has the fourth-highest beer tax in the world and the third-highest spirits tax.

‘Tobacco is a legal product. And despite all the window dressing, the government needs smokers for all the tax they generate,’ he said.

He added that, ‘The health-related information on smoking is readily available. That is largely what has driven the long-term reduction in smoking.’

‘But some people want to smoke and continue to smoke. That’s their business. If it brings them some pleasure in life, then butt out of their business.’

Meanwhile, the Australian Government continues to take steps to reduce smoking in the country.

According to Health and Aged Care Minister Mark Butler, the government is seriously tackling the problem, as they are looking to reduce the number of smokers by half by 2030. Last December, he mentioned their next step to achieve the goal.

‘We know that the tobacco industry has innovated by trying to make individual sticks or individual cigarettes more attractive, more marketable, in the plain packaging,’ he said.

‘I want to see a discussion about colours that make [cigarettes] unattractive, about dissuasive messages on individual sticks, which the Canadian government has just indicated they‘re going to go forward with.’

Key Takeaways

  • Tommy Lee, Motley Crue drummer, recently expressed shock at Australia's high cigarette prices, after being charged $62.99 for a packet of Marlboro Gold 25s at a Melbourne 7-Eleven.
  • Despite the high cost of cigarettes in Australia compared to the US, the rates of smoking in both countries are very similar, with 10.1 per cent and 11.5 per cent of adults respectively.
  • Despite the shrinking cigarette market, untaxed cigarettes are still growing in popularity among smokers, the Australian government still collects more in tax, providing a revenue of $14.26 billion.
  • Caleb Bond suggests that the high cost of cigarettes in Australia is not effective in discouraging smoking, but simply lines the pockets of the federal government, with smokers often being already disadvantaged individuals.

Members, have you also encountered high prices of cigarettes? Do you think tobacco excise is effective in reducing the number of smokers? Share your thoughts in the comments below!
The tax on cigarettes does not line the pockets of the government. It helps ease the cost of smokers filling the hospital beds and compensates the many visits to doctors for emphysema and throat and lung diseases and therefore a drain on Medicare. This American has no idea how our medical insurance works in Australia and can only wish America has such a good system
 
  • Like
Reactions: PattiB
Unfortunately the availability of illegal tobacco has become so widespread and it would seem that smokers are flocking to the appropriate suppliers. This of course means that there is zero tax being reaped by the government and the effect of people giving up is negligible. I hate the smell of cigarette smoke and so I banish my friends outdoors when they visit. They do say they are going to give up and I have seen a couple of them do it. I think most smokers want to give up but it is very difficult especially if they are surrounded by other smokers. All we can do is try to encourage them to stop.
Or, you could just mind your own business and let them enjoy what few pleasures they may have!
If they were really your friends, they would'nt need to be banished!
 
Or, you could just mind your own business and let them enjoy what few pleasures they may have!
If they were really your friends, they would'nt need to be banished!
That’s a bit rude by law smokers are supposed to smoke 20metres away from other people and units.and second hand smoke is worse for you than smoking. My mother died of emphysema thanks to my father smoking and he was riddled with cancer and died vomiting up tar from smoking.🤮
So put that in your pipe and smoke it.🤣
 
It’s surprising how expensive some things can be in Australia.

But, for American band Motley Crue drummer Tommy Lee, the surprise was more than most.



Tommy Lee was touring in Australia and decided to go to a 7-Eleven in Melbourne to buy a pack of cigarettes. Upon seeing the price of a packet of cigarettes on the receipt, he was in disbelief that a Marlboro Gold 25s cost $62.99.

‘$251.96 for 4 packs of smokes here in Melbourne!!!’ he said, sharing his disbelief on social media.

To drill his point home, he even took a shot at the convenience store’s tagline: ‘7/11 wonderfully cheesier!’

It was a huge difference from the cost of a cigarette pack in the United States, which is around $12 AUD.


View attachment 35092
Tommy Lee’s shocking cigarette purchase receipt reveals the existing tobacco excise in Australia. Credit: Unsplash



The incident caught the attention of Caleb Bond, the host of Sky News Australia’s The Late Debate.

‘Despite the vast chasm in cost, the difference between the rates of smoking in Australia and the US is negligible,’ he said.

‘In 2021 it was 10.1 per cent and 11.5 per cent of adults respectively.’

‘It has nothing to do with health and everything to do with squeezing as much money out of you as possible.’

He then pointed to figures from the Australian Tax Office, which revealed that there has been a decrease of 34 per cent in the tobacco market between 2015-16 and 2020-21.

‘At the same time, the tax collected on tobacco increased 43.7 per cent,’ he said. Bond also took aim at the growth of the illegal tobacco market at the expense of above-board growth in retailers.

‘Woolworths reported in its latest annual report that its sales of tobacco dipped 16 per cent at the same time as importation of illegal cigarettes went through the roof,’ he said.

‘So despite the entire cigarette market shrinking and illegal, untaxed cigarettes growing in popularity among smokers, the government still takes home more in tax—to the tune of $14.26 billion.’

This led Bond to a conclusion: the excise tax might not be as effective as it’s thought to be.

He said, ‘If the proportion of the population that smokes in Australia and the US can be so similar despite the fact it costs so much more here, then it is clear that the extortionate excise does little to discourage smoking.’

‘It just lines the pockets of the federal government at the expense of people who are often already disadvantaged..’



Bond also compared the issue of alcohol, with $20 from each slab of beer going to the government. As a result, Australia has the fourth-highest beer tax in the world and the third-highest spirits tax.

‘Tobacco is a legal product. And despite all the window dressing, the government needs smokers for all the tax they generate,’ he said.

He added that, ‘The health-related information on smoking is readily available. That is largely what has driven the long-term reduction in smoking.’

‘But some people want to smoke and continue to smoke. That’s their business. If it brings them some pleasure in life, then butt out of their business.’

Meanwhile, the Australian Government continues to take steps to reduce smoking in the country.

According to Health and Aged Care Minister Mark Butler, the government is seriously tackling the problem, as they are looking to reduce the number of smokers by half by 2030. Last December, he mentioned their next step to achieve the goal.

‘We know that the tobacco industry has innovated by trying to make individual sticks or individual cigarettes more attractive, more marketable, in the plain packaging,’ he said.

‘I want to see a discussion about colours that make [cigarettes] unattractive, about dissuasive messages on individual sticks, which the Canadian government has just indicated they‘re going to go forward with.’

Key Takeaways

  • Tommy Lee, Motley Crue drummer, recently expressed shock at Australia's high cigarette prices, after being charged $62.99 for a packet of Marlboro Gold 25s at a Melbourne 7-Eleven.
  • Despite the high cost of cigarettes in Australia compared to the US, the rates of smoking in both countries are very similar, with 10.1 per cent and 11.5 per cent of adults respectively.
  • Despite the shrinking cigarette market, untaxed cigarettes are still growing in popularity among smokers, the Australian government still collects more in tax, providing a revenue of $14.26 billion.
  • Caleb Bond suggests that the high cost of cigarettes in Australia is not effective in discouraging smoking, but simply lines the pockets of the federal government, with smokers often being already disadvantaged individuals.

Members, have you also encountered high prices of cigarettes? Do you think tobacco excise is effective in reducing the number of smokers? Share your thoughts in the comments below!


Whatever the reason, whatever the statistics, whatever the outcomes, the price of cigarettes in Australia is utterly and sickeningly outrageous. This particular hobby/pleasure/whatever has been bled and pummeled for all it's worth for years, and it's high time a different cash-cow was given a run for its money.
 
The tax on cigarettes does not line the pockets of the government. It helps ease the cost of smokers filling the hospital beds and compensates the many visits to doctors for emphysema and throat and lung diseases and therefore a drain on Medicare. This American has no idea how our medical insurance works in Australia and can only wish America has such a good system
Please produce data that substantiates your statements. ATHRA reports "‘From a purely financial perspective, the Australian Government in 2015/16 raised more revenue in tobacco excise ($9.8 billion) than it lost through smoking attributable costs and loss of other revenue ($2.2 billion)’ the report found" If Governments were fair dinkum the would BAN it, but don't because it's a good cash cow. Similar to .05% Driving laws, Governments should take a stand and reduce traffic deaths by making it ZERO no alcohol at all when driving, but again they don't do it because it too is a good cash cow in every state.
 
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https://seniorsdiscountclub.com.au/...obacco-working-host-criticises-measure.38590/


The entire process is a fiasco in process.
The Goverment decided that smoking was bad for us and applied a crippling and
scheduled increasing surcharge on tobacco.

Who wins? The Government wins everytime. 'Taxation for prevention' is a process generated by Governments to obtain income from people who are slavishly attached to the smoking habit.

If the Government was genuinely serious about the matter and had their sights set upon reducing the harm that smoking causes, they would have produced a set of regularly published documents showing the progressive effectiveness of their imposts on recalcitrant smokers. I cannot find any Government statistics that perform this function - doubtless, there are none.

You may regard this article as cynical - as you please, but try opening your mind to other possibilities such as:

Speed limits are too low.

Alcohol is being spun out of grasp by a similar tax to that on cigarettes.

Speed cameras are a contradiction in terms.

Policemen in police cars two-by-two. We now have a "Road Policing Command". I mean Really?

Motor cars are a tax generator (common parlance in exalted taxation places).

Motor registration - a charge for the administrative bother of renewing your motor vehicle for another year. That's how it started!

Similarly driving licences- why so expensive and why so often. Surely if you learn to drive then do so so more effectively each year to be rewarded with a licence charge each year.

There's a lot more of it out there. I asked a friend last week on the subject - Howdo you get more blood out of a stone? His off the cuff response was - 'I dunno. Ask the Government - they do it all the time'.

Nuff said
 
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I agree that the Tax on cigarettes is exorbitant but need to ask:- 'Is this helping to persuade people to give up smoking or are they just ignoring the extra cost & paying regardless?

If the Federal Government were genuine about wanting people to give up smoking wouldn't they be approaching this from a different angle? I am sure Patches may not suit every smoker in assisting them to give up but wouldn't this be a good start for the Government? Make Patches available free to someone wishing to give up for a specified period of time to get them started, by which time that person would know if they want to proceed down that road.

l guess the big decision for the Federal Government though is :- DO THEY SHOOT THE CASH COW? (as these taxes are).
 

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