by Pippa Starr
January 6, 2025
Australia is now witnessing the fallout from years of misguided policies on tobacco and vaping products. Once hailed as a global leader in tobacco control, Australia now finds itself grappling with an unprecedented black market for cigarettes and vaping products.
Law enforcement efforts are costly and have proven largely ineffective.
The black market has not only eclipsed legal avenues for nicotine consumers but has also fostered dangerous criminal activity, including over 200 firebombings and arson attacks linked to the illicit trade.
How did we get here, and more importantly, what can be done to rectify the situation?
Australia’s strict regulatory approach, including the now failed prescription/chemist-only model for nicotine vaping products and the world’s highest tobacco taxes, was intended to curb smoking and protect youths and public health. However, these measures have backfired:
Prescription/Chemist Only Vaping Model: The requirement for consumers to obtain a doctor’s prescription for nicotine vapes has driven many to the black market and back to smoking, where unregulated products are easily accessible.
Skyrocketing Tobacco Taxes: While high taxes have reduced smoking rates in some demographics, they have made legal tobacco products prohibitively expensive for many, fueling demand for cheaper illicit cigarettes.
By ignoring advice from harm reduction experts and consumer advocates, health policymakers created an environment ripe for exploitation by criminal networks.
Organized crime now controls a thriving illicit trade, supplying unregulated vaping products to youth and counterfeit tobacco products to adults.
The rise of the black market did not occur overnight. For years, stakeholders, including public health experts, researchers, and consumers, have warned of the unintended consequences of Australia’s punitive approach:
Senate Inquiries Ignored: Numerous Senate inquiries into tobacco and vaping policy highlighted the risks of excessive regulation and punitive taxation. They emphasized the need for harm reduction approaches, such as allowing regulated consumer access to vaping products, yet this advice was repeatedly ignored.
Criminal Activity on the Rise: Over 200 firebombings of tobacco and vape shops in Australia are a chilling reminder of the chaos unleashed by the black market. These attacks, linked to turf wars between criminal syndicates, could have been avoided if regulated markets were implemented earlier.
Consumer Voices Dismissed: Smokers and vapers—key stakeholders in the debate—were largely excluded from policy discussions. Their needs for safer, accessible alternatives were overlooked in favor of prohibitionist rhetoric.
To regain control and dismantle the black market, Australia must pivot to evidence-based, pragmatic policies that balance public health objectives with consumer realities:
Legalize and Regulate Vaping Products
Introduce a tightly regulated consumer market for nicotine vaping products, with sales through licensed retailers and strict age verification measures. This approach has successfully reduced smoking rates and black market activity in countries like the UK and New Zealand.
Lower Tobacco Taxes
Reduce tobacco taxes to make legal products more competitive with the black market. Excessively high taxes have driven many smokers to illegal, unregulated sources, undermining public health goals.
Adopt Harm Reduction Strategies
Promote vaping as a safer alternative for smokers who cannot quit, as endorsed by public health authorities such as the UK’s National Health Service (NHS), Public Health England and New Zealand Govt.
Clear, science-based messaging can correct public misconceptions about vaping.
Strengthen Enforcement Against Illicit Trade
Invest in targeted enforcement to dismantle criminal networks, while streamlining legal access to vaping products to reduce demand for black market alternatives.
Engage Stakeholders in Policy Development
Include consumers, healthcare providers, and harm reduction experts in policy discussions to ensure that regulations address real-world needs and challenges.
Australia’s current predicament is the result of years of ignoring expert advice and consumer needs. The consequences, ranging from a booming black market to violent criminal activity were both predictable and preventable.
By adopting sensible, risk-proportionate regulations, the government can reclaim control, protect public health, and dismantle the illicit trade.
The time for action is now. The choice is stark: continue down the path of failed prohibitionist policies, or embrace evidence-based reform to create a safer, healthier future for all Australians.