The federal government has allocated $5.9 million to address the issue of illegal tobacco trade in the Northern Territory (NT).
The NT holds the highest smoking rate in Australia, and the presence of illegal tobacco is reportedly associated with organized crime activities.
Funding from the federal government is already being distributed to the territory, with additional allocations expected in the upcoming months.
This funding initiative follows the recent confiscation of over 82,000 cigarettes, 15.5 kilograms of loose-leaf tobacco, and 873 vaping devices in Darwin. These items were seized during six Customs Acts searches conducted by the Australia Border Force (ABF) in April, with the vapes alone representing an evasion of approximately $147,895 in duty tax.
During a visit to Darwin to announce the funding, Julian Hill, the Assistant Minister for Customs, emphasized that the federal government is committed to the NT, with the funds directed towards law enforcement and legislative reforms.
He noted that the NT currently has the weakest regulations regarding illicit tobacco, citing outdated laws and insufficient resources.
Mr. Hill suggested that the territory could adopt successful strategies implemented in other states, including increasing penalties for offenses related to the supply, distribution, manufacture, and production of illegal tobacco. He proposed long-term closure orders for shops found selling illicit tobacco, emphasizing that temporary shutdowns should not be sufficient. Additionally, he mentioned imposing penalties on landlords who lease properties for unlawful activities.
Luke Gosling, the Federal Member for Solomon, highlighted the necessity for Commonwealth assistance to modernize laws and eliminate illegal tobacco outlets in the territory.
“This funding acknowledges the unique geographical and operational challenges faced by the Northern Territory and reinforces our collaboration with local authorities to combat illegal tobacco throughout the supply chain,” Mr. Gosling stated.
Mr. Hill explained that this funding is part of a broader $84 million initiative aimed at tackling illicit tobacco nationwide, noting that he has engaged in productive discussions with NT ministers. He reported that the ABF has intercepted unprecedented amounts of illegal tobacco, seizing over one kilotonne since the launch of Operation Printwall in December. However, he emphasized that no nation can fully address the global influx of illicit tobacco at its borders alone.
“This is why the Commonwealth is collaborating with states and territories to disrupt the market by strengthening laws, closing down illegal tobacco retailers, and targeting the criminal organizations responsible for this trade,” Mr. Hill added.
The announcement of funding coincides with an ABC investigation from March that uncovered organized crime syndicates aiming to expand their operations into the NT.
Mr. Hill reiterated that the focus of these nationwide crackdowns would be on organized crime syndicates, stating, “The person operating the register at a shop selling what appears to be a legal product might seem friendly, but behind that façade are criminal organizations profiting immensely from the nicotine addiction of Australians, and they use these profits to fund further criminal activities.”
He warned organized criminals, “We will seize your properties, cash, cars, boats, and other assets to dismantle this trade.”
Mr. Hill assured that funding is currently being disbursed, with additional payments to the territory anticipated by June 30.
The Northern Territory has the highest smoking prevalence in the country, with nearly 20% of deaths in the region attributable to smoking-related causes. Smoking rates among Aboriginal communities in the NT are five times higher than the national average.
Marion Scrymgour, the Federal Member for Lingiari, pointed out that, while 94% of young Australians have never smoked, this statistic does not hold true for young people in the NT. “We cannot allow the next generation to fall victim to smoking-related diseases and premature death. I welcome the Commonwealth’s commitment to addressing illegal tobacco in the Territory,” she stated. “The Commonwealth government will not relinquish Australia’s health policies to organized crime, nor will we permit the situation to deteriorate further.”
Mr. Hill remarked that Australia has successfully achieved some of the lowest adult smoking rates globally over the years, but the illicit tobacco trade undermines these achievements, fuels organized crime, and deprives the community of essential revenue needed to support the healthcare system.
