Australian Liberals consider tobacco excise cut

The Australian Liberal Party is reportedly considering a 50% cut to tobacco excise if elected, a policy criticized by health groups.

Australian Liberals consider tobacco excise cut

Image: theaustralian.com.au

The Australian Liberal Party is reportedly considering a policy to halve the tobacco excise if it wins the next federal election. This would represent a significant reversal of a long-standing bipartisan approach to using high taxes as a public health measure to reduce smoking rates.

Health organizations, including the Australian Medical Association and the Cancer Council, have strongly criticized the proposal. They argue that lowering the price of cigarettes would undermine decades of public health progress, making smoking more affordable and accessible, particularly for younger people and those on lower incomes.

The policy consideration comes amid broader political debates on cost-of-living pressures. Proponents within the party frame it as a measure to provide financial relief, while opponents and health experts warn it would lead to increased smoking-related illness and healthcare costs. The next Australian federal election is due by late 2028.

❓ Frequently Asked Questions

What is the tobacco excise in Australia?

It is a federal tax applied to tobacco products, which has been steadily increased over years as a public health measure to discourage smoking.

Why do health groups oppose cutting the tobacco tax?

Health groups oppose the cut because evidence shows higher prices reduce consumption, and a price drop would likely lead to increased smoking rates and related diseases.

When is the next Australian federal election?

The next election for the House of Representatives must be held by 27 September 2028, following the last election in May 2025.

📰 Source:
theaustralian.com.au →
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