Submission: Inquiry into the illegal tobacco crisis in Australia

Illegal tobacco is no longer a marginal compliance issue. It is a rapidly expanding, highly organised market that is undermining Australia’s tobacco control achievements, driving community harm and violence, and eroding the revenue base that supports essential public services. The AMA is deeply concerned that fragmented regulation, weak retail controls and inconsistent enforcement have created the conditions for illegal operators to proliferate openly in suburbs and regional towns across the country.

To restore control of the tobacco supply chain and rebalance the risk‑to‑reward equation for illicit actors, our submission calls on the Committee to recommend the following four immediate, practical reforms.

1. Establish and implement a nationally consistent tobacco retail licensing framework. 
2. Establish national data capability spanning health, police, border, revenue, fair trading and corporate regulators, supported by a simple public reporting mechanism for suspected illegal activity, new shops and community concerns. 
3. Expand on-the-spot enforcement options, including closure powers and licence cancellation and seizure of assets, so illegal operators can be shut down swiftly when breaches are evident. 
4. Future‑proof any new laws by avoiding narrow definitions and closing loopholes that will be exploited by the next nicotine product or delivery device.