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Why Australia's illegal tobacco and vape trade continues to flourish and what should be done about it Simon Chapman AO Four out of five cigarettes smoked in Australia are illegal. What's in them? The Lighthouse Cost Of Cigarettes In Australia: Prices And Tax Laws (2025) Smokefree Clinic Taxing tobacco has played a huge role in Australia's declining smoking rates. But it's also led to a flood of illegal cigarettes entering the market, often costing $20 or less a pack. Cigarette prices have surged from 3 in 2003 to 22 in 2026, reflecting a steep rise over the past two decades. The steady increase highlights tighter taxation and growing regulatory pressure on 13.6 What tobacco taxes apply in Australia? Tobacco in Australia

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