Combatting Illicit Tobacco Bill 2026; Second Reading

Summary

Australia's illegal tobacco market is worth between $4.1 and $6.9 billion and is growing, so this legislation increases criminal penalties for importing, selling, making, and possessing illicit tobacco, and strengthens authorities' ability to seize the money and assets criminals earn from these activities. The changes amend the Customs Act 1901, Excise Act 1901, Proceeds of Crime Act 2002, Taxation Administration Act 1953, and the Telecommunications (Interception and Access) Act 1979 to give law enforcement agencies better tools to investigate these crimes and track criminal profits. By making the punishments harsher and making it easier to confiscate proceeds, the government aims to make illegal tobacco less attractive to organised crime networks and to reduce the public health risks from unregulated products.

What happens at this stage

The main debate on whether the chamber supports the broad purpose of the bill. Members speak to its overall merits and concerns rather than the fine print. The government outlines its policy intentions; the opposition and crossbench put their case. This is the stage that determines whether the bill proceeds at all.

Next: Consideration in Detail (House) or Committee of the Whole (Senate), where the bill is examined clause by clause