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AACS

MELBURNIANS SAY TOBACCO TAX IS DRIVING BLACK MARKET CRISIS

Australian Association of Convenience Stores

An overwhelming majority of Melbourne voters believe high tobacco taxes are fuelling the illicit tobacco crisis, according to new research released by the Australian Association of Convenience Stores (AACS).

AACS CEO Theo Foukkare described the results as a damning verdict on federal tobacco policy and called on the new Victorian Premier to pressure the Federal Government to change course on tobacco excise.

"This is a wake-up call for the Federal Government. Melbourne voters now see high tobacco taxes as a driver of the black market, not a solution to it," Mr Foukkare said. The findings are stark:

  • More than three-quarters (76 per cent) believe excessive federal excise encourages consumers to look for illegal alternatives
  • 49 per cent want taxes on tobacco lowered, while only 12 per cent support increases.
  • 66 per cent believe illegal tobacco has made Melbourne less safe
  • Crime and safety have surged to become voters’ second highest priority, behind the cost of living

The research also paints a picture of the damage being done to the city because of the illicit trade.

54 per cent say the unregulated trade makes it easier for children to buy cigarettes, and 49 per cent believe it has degraded their local community. Meanwhile, firebombings and arson attacks rated as the single most concerning issue tested, recording a net concern score of 71, while organised crime groups profiting from illegal tobacco followed closely behind on 61.

Half of all Melbourne’s voters also place the blame for the explosion of the black market squarely on Labor state and federal governments. When asked who is most responsible, 26 per cent pointed to the Victorian government and 24 per cent to the federal government.

The Liberals are also viewed as being better equipped than Labor to tackle crime, safeguard neighbourhoods, and combat black-market tobacco networks.

"Melburnians understand what Canberra won't admit: price people out of the legal market, and they will turn to criminals instead," Mr Foukkare said.

"Rather than reducing smoking rates, it's handing billions to organised crime while legitimate retailers face firebombings and violence.

"AACS has been sounding the alarm for years. Now Melbourne voters are confirming what we've warned. This policy is failing consumers, failing businesses, and failing communities."

Mr Foukkare said the new Victorian Premier Ben Carroll has an opportunity to follow the lead of NSW and Tasmanian Premiers and call on the Federal Government to review the tobacco excise.

"Premier Minns and Rockliff have shown leadership by acknowledging that current excise is driving illegal tobacco sales.

"Premier Carroll should now stand up for Victorian communities facing the same crisis. Melbourne voters have made their views clear. The Victorian Government must add its voice and demand federal action."

Mr Foukkare also said AACS continues to support stronger enforcement measures to crack down on illicit tobacco, but stressed that enforcement alone cannot solve the problem.

"You cannot enforce your way out of a market where illegal product is dramatically cheaper and available on every corner. Enforcement must go hand-in-hand with excise reform."

Media contact: Theo Foukkare – 0423 003 133

NOTES TO EDITORS

Methodology: 

The fieldwork for this survey was conducted on behalf of AACS by RedBridge Group between Tuesday 14 July and Thursday 23 July 2026. The sample of N = 2,014 voters aged 18 and older living in the five Melbourne Metropolitan Legislative Council.

Quotas for age, gender, upper house region, education and vote at the 2025 federal election were used to ensure the sample is representative of the Melbourne metropolitan area. Rim weighting was used to apply interlocking weights for age, gender, education, religion and Legislative Council Region.

The efficiency of these weights was 85 per cent, providing an effective sample size of 1,711. Based on this effective sample size, the margin of error (95 per cent confidence interval) for a 50 per cent result on the full sample is ± 2.4 per cent.

ENDS


Contact details:

Theo Foukkare – 0423 003 133