Cigarette Costs Surge With Fresh Excise Hike

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If you smoke in Australia, you’ve probably noticed your wallet feels a little lighter today. That’s because tobacco just got more expensive — again.

From September 1, the tax on cigarettes has jumped by almost 10 cents per stick. That means a standard 20-pack now costs close to $30, with $28 of that price just going to tax. Yep, you’re basically paying the government every time you light up.

But before you get too shocked, this isn’t exactly a surprise. By law, tobacco prices go up twice a year — every March and September — thanks to automatic increases in excise duty. This time around, the excise rose by 6.8 per cent.

So here’s how it breaks down:

• The tax on a single cigarette (weighing up to 0.8 grams of tobacco) has climbed from $1.40 to $1.49.

• That pushes a 20-pack from $28.06 to $29.97.

• If you’re into roll-your-own or heavier tobacco products, the excise per kilo has surged from $2158.65 to $2397.31. That’s nearly $240 more per kilo.

And this trend isn’t slowing down anytime soon. Back in 2013, the tax was around 46 cents per cigarette. Today? Almost $1.50. On top of that, since September 2023, there’s been an extra 5% annual increase locked in for three years.

Another change is happening behind the scenes: the government is tweaking how it calculates roll-your-own tobacco to bring it in line with manufactured cigarettes. Basically, they’re reducing the "equivalisation weight" each year until 2026, which makes roll-your-own steadily pricier too.

So whether it’s cigars, cigarettes, or snuff, the bottom line is the same — tobacco in Australia is only going to keep getting more expensive. And with no legal tobacco manufacturing happening locally, all of it comes in through imports, which means more customs duties piled onto the cost.

If you’re a smoker, don’t expect relief anytime soon. Prices are going up, and they’ll keep climbing for years to come.

Stay tuned with Aus News Lanka – the leading platform for news for Australians.