Australia’s black-market tobacco trade has escalated into one of the nation’s most violent and fastest-growing criminal industries, costing an estimated $4 billion in the 2023–24 financial year and contributing to a record $82.3 billion economic toll from organised crime.
According to twin reports from the Australian Criminal Intelligence Commission (ACIC) and the Australian Institute of Criminology (AIC), the overall cost of serious and organised crime jumped by $13.6 billion in just 12 months, driven largely by illicit tobacco sales and turf wars among syndicates. The $4 billion figure represents a four-fold increase since 2020-21, cementing tobacco as the second-largest illicit commodity market after drugs.
ACIC chief executive Heather Cook, speaking in Canberra, warned that organised crime groups are waging violent battles for control of the tobacco and vaping trade. She revealed that syndicates have been linked to more than 200 firebombings and at least three homicides since 2023, including the death of an innocent bystander. Extortion and intimidation have also become widespread tactics.
Cook stressed the broader impact of the trade: “Billions of dollars in lost tax revenue means less money for hospitals, schools and essential services. Organised crime syndicates then recycle these illicit proceeds into other criminal activities, further undermining community safety and the social fabric.” She added that the violence is spilling into public spaces, affecting entire neighborhoods.
Authorities note that the $4 billion estimate is conservative, as it does not account for illegal vapes and e-cigarettes. Since tighter vape restrictions were introduced in 2024, federal agencies have seized more than 10 million illicit vaping products, highlighting what the AIC describes as a “substantial and rapidly expanding market.”
The reports underscore how illicit tobacco has evolved from a niche black-market product into a major driver of organised crime, rivaling narcotics in profitability and violence. The surge has been fueled by rising tobacco excise taxes, which have created lucrative opportunities for criminal syndicates to undercut legal prices.
Law enforcement agencies are now prioritizing crackdowns on the trade, but officials admit the scale of the problem is daunting. The ACIC and AIC warn that unless stronger measures are taken, illicit tobacco and vaping products will continue to expand as key revenue streams for criminal networks, further entrenching violence and economic losses across Australia.
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