The federal government will lift the tax on tobacco products by 5 per cent each year for the next three years, Health Minister Mark Butler announced on Tuesday.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The increase, to be in place from September 1, will generate $3.3 billion in revenue over the next four years, including $290 million in GST payments to the states and territories, Mr Butler told the National Press Club.
"We know that a higher-priced cigarette is a more unattractive cigarette," he said.
"We will also align the tax treatment of tobacco products so that products like roll-your-own tobacco and manufactured sticks are taxed equally."
The upcoming federal budget will include $737 million to tackle harm caused caused by tobacco and vaping products.
That will include $264 million for a new national lung cancer screening program, which is predicted to prevent more than 4080 deaths from lung cancer.
A sum of $239 milllion will also go towards First Nations people affected by lung cancer, "with funding to ensure mainstream cancer services are culturally safe and accessible to First Nations people", Mr Butler said.
"As well as funding to build the capacity and the capability of the Aboriginal community controlled health services sector to support cancer on the ground."
The minister also said it would take time to lift Medicare out of its current "weakened state", as he unveiled the Albanese government's three reform priorities for the universal healthcare scheme.
The budget will see investment in digital health, multidisciplinary healthcare and workforce capabilities, as the health minister spoke of plunging rates of bulk billing around the country.
READ MORE:
- Vaping industry found 'biggest loophole in Australian history'
- Schools install vape detectors as experts warn of new generation of smokers
- Canberra mum speaks out about e-cigarettes as young son reportedly approached about vaping
- Queanbeyan High School students appear in But Out Boondah anti-smoking campaign
'We are determined': Government has vapes in sight too
Changes to tobacco taxes followed the federal government's announcement on Monday that it would tighten controls on non-prescription vapes in a bid to crack down on a flourishing black market, often targeted at children and teenagers.
It has pledged to stop the importation of non-prescription e-cigarettes, restrict flavours, colours and ingredients and require pharmaceutical-like packaging.
The concentration and volume of nicotine used in vapes will be reduced, while they will no longer be sold in retail stores and single-use vapes will be banned entirely.
Asked about the government's capacity to follow through on reforms, given the availability of unregulated tobacco in Australia, Mr Butler said it was something "we simply have to do".
"How can we guarantee that a similar situation is not going to happen as we're seeing with the illegal durries [cigarettes] trade, and why not sell it for over 18s, regulated and taxed with the other smokes?" Mr Butler was asked.
"I am not going to normalise a product that is deliberately designed, in my view, to create a new generation of nicotine addicts," the health minister responded.
"That evidence shows is becoming a pathway back into smoking cigarettes, I am just not going to do it."
He added that vapes were already being sold illegally, but stopping imports would stop the problem.
"The under-the-counter sale of these things is not something that might happen in the future, it is happening right now," he said.
"It is happening in a way that effectively has no compliance or enforcement activity behind it because state and territory governments quite rightly say 'You at a Commonwealth level have let the border open, you have let them come in'."
Alongside the border force, the Therapeutic Goods Administration and states and territories, the government will stop illegal vapes and tobacco at the border, he said.
"This is hard work we are expecting of our policing authorities and border force people but we are determined, it is something we simply have to do," Mr Butler said.