Treasury considering changes to Australia’s contentious tobacco excise, as calls grow for a freeze

The tax has climbed by 60% since 2020 and accounts for three-quarters of the legal cost of a packet of cigarettes

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Experts say a freeze on the federal government’s contentious tobacco excise should be considered, after the Treasury revealed it was modelling the impacts of cigarette prices on demand amid a booming black market.

Lachlan Vass, a research manager at the e61 Institute, said the Treasury’s examination of “price elasticity” and demand for tobacco would be a necessary step to costing potential reforms to the excise.