Albo’s new tax on ciggies: Next week’s Budget will include THREE more tobacco tax hikes in a row
- Price hikes will raise $3.3billion in revenue
- The first rise comes in on September 1
The Albanese government has announced three tobacco price hikes will be in next week’s Federal Budget, raising $3.3billion in revenue.
‘Tax on tobacco will be increased by 5 per cent per year over the next three years starting on September 1,’ Health Minister Mark Butler said on Tuesday afternoon.
‘We know that a higher price cigarette is a more unattractive cigarette. We will also align the tax treatment of tobacco products so that products like roll your own tobacco and manufactured sticks are taxed equally.
Mr Butler said the changes will raise an additional $3.3billion over the coming four years, including $290million in GST payments to the states and territories.
He said it would help ‘to support our health system and the health of current and former smokers and vapers’.
The Albanese government has announced three tobacco price hikes will be in next week’s Federal Budget, raising $3.3billion in revenue. A woman is pictured smoking
The Minister said the previous Coalition government increased tobacco excise by around 125 per cent during its term in government.
‘Excise had stopped increasing in about 2020 and since that time, excise increases have actually started to lag inflation, particularly last year,’ he said.
‘We are determined not to see the price of cigarettes start to become more attractive as against CPI (inflation).’
Mr Butler said the Labor government was seeking to continue the ‘price signal that (former Labor health minister) Nicola Roxon argued so persuasively and comprehensive 10 years ago.’
Up and up and up and up: The federal government’s tobacco excise has leaped 12.5 per cent for every year since 2013 – plus an additional 25 per cent increase in 2010
More to come…
