Australian Cigarette Prices Jump on Sept 1 Excise Hike

Tobacco products across Australia have become significantly more expensive as of today, September 1, following the scheduled bi-annual increase in excise duty rates. The tax charged on an individual cigarette has jumped by almost 10 cents, a move that continues the government’s long-term strategy of raising tobacco costs to discourage smoking.

Under Australian law, tobacco excise rates are adjusted every March and September. From today, the excise on tobacco has risen by 6.8 per cent. This translates to a tangible hit for consumers: the tax on standard cigarettes (stick form, not exceeding 0.8 grams of tobacco) has increased from roughly $1.40 to $1.49 per stick. Consequently, the tax component alone for a standard pack of 20 cigarettes has risen from $28.06 to $29.97.

The hike is even more pronounced for other tobacco products. The excise for loose tobacco or sticks exceeding 0.8 grams has surged from $2,158.65 to $2,397.31 per kilogram of tobacco content—a jump of nearly $240 per kilo. Blended tobacco goods are also subject to new, higher duty rates calculated under specific excise guidelines.

This increase is part of a broader trend. Over the last decade, tobacco excises have climbed from 46 cents to nearly $1.50 per cigarette. Taxes now account for approximately $28 of the average $40 retail price for a packet of cigarettes in Australia. Since September 2023, tobacco excise and excise-equivalent customs duty have been increasing by an additional 5 per cent annually. Furthermore, the government is progressively aligning the tax treatment of roll-your-own tobacco with manufactured sticks by lowering the “equivalisation weight,” a change that also takes effect each September 1 until 2026.

With no legal tobacco manufacturing currently occurring within Australia, these costs are primarily driven by customs duties paid at the border and passed directly to the consumer. Smokers can expect these bi-annual price rises to continue for the foreseeable future.

• Reference: Excise duty rates for tobacco
• Read more: Australia Hikes Cigarette Tax Amid Black Market Concerns

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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