Coalition proposes steep tobacco tax cut and vape legalisation in Australia

Australia’s Coalition has proposed cutting tobacco excise by 80% and legalising and regulating vapes and nicotine pouches, a move it says would help tackle illegal cigarette sales. The plan was announced on Thursday by Angus Taylor and Nationals leader Matt Canavan.

Labor, the Australian Medical Association and other public health experts rejected the proposal, warning that lower cigarette prices would undermine tobacco control efforts. The criticism came as debate intensified over how to respond to the growth in illicit tobacco trade.

The announcement followed a similar proposal from One Nation leader Pauline Hanson, who had called for a 75% cut in tobacco excise weeks earlier. The Coalition has framed its plan as part of a broader response to the black market in nicotine products.

Tobacco taxation and vape regulation remain central issues in Australia’s public health policy, where governments have spent years trying to reduce smoking rates while limiting the spread of unregulated nicotine products.