The Albanese Government has appointed an Illicit Tobacco and e-Cigarette Commissioner to tackle the illegal cigarette market. I asked what impact the $188 million already spent has had, and where the additional $156 million allocated for the next two years will go. I have serious concerns about waste, and the response I received did not provide clarity. These issues will need to be revisited in future Estimates as accounts and outcomes are released.
What’s clear is that there is no baseline for the Commissioner’s operations. I would have thought that the first step should’ve been to determine the size of the market, identify the crimes being committed, and calculate how much revenue the government is losing in duty. Those fundamental questions have not been asked. The Commissioner suggested that seizures was the benchmark of success. I strongly disagree. If the illegal market is booming, then naturally, seizures will increase—this metric does not reflect real progress.
I will continue to push for hard data showing a reduction in the illicit tobacco market as a result of this role. At present, it feels like a mechanism to shift blame without holding anyone accountable. If that proves true, One Nation would abolish this position.
— Senate Estimates | December 2025
Transcript
Senator ROBERTS: Thank you for appearing today. My questions are about the Illicit Tobacco and E-cigarette Commissioner. Is she in?
Ms Foster: Yes. We’ll just get the right officers up to the table for you. It will be a combination of the ITEC Commissioner and the ABF Commissioner.
Senator ROBERTS: I’ll try to be brief. The budget allocated $156.7 million over two years from 2025-26, to expand programs to tackle the illicit tobacco trade. What programs are they, please?
Ms Shuhyta: I think I might defer that to the ABF Commissioner. That money was referred to—sorry. There are two amounts of money. Could you just repeat the budget year that you were referring to?
Senator ROBERTS: ‘$156.7 million over two years from 2025-26 to expand programs to tackle’—
Ms Shuhyta: Yes. I can go through the number of agencies that have that. Sorry, I was thinking about the previous budget year, which went to ABF. Just let me get that list for you. So $49.4 million went to the Australian Federal Police to expand the Criminal Assets Confiscation Taskforce; $7 million went to support the Australian Border Force to utilise emerging technology to screen and detect more illicit tobacco at our borders; $19.9 million went to fund my office, the Illicit Tobacco and E-cigarette Commissioner’s office; $1.4 million went to establish a new international collaboration for regional assessment of criminal network behaviours—that’s where we’ve engaged the UN office of drug control to conduct an Asia-Pacific/Pacific regional threat assessment; $40 million went to support states and territories to establish local-level capability; $31.6 million went to strengthen compliance and enforcement functions under the Public Health (Tobacco and Other Products) Act 2023 and the Therapeutic Goods Act 1989; $4 million went to extend the national tobacco and e-cigarette public health campaign, to target motivations and behaviours of the people who use illicit tobacco; and $3.3 million went to the Commonwealth Director of Public Prosecutions to prosecute contraventions under the public health act and the Therapeutic Goods Act.
Senator ROBERTS: That’s quite a wide net. You were allocated $19.9 million, as you said, of this money, to administer your office. What is that being spent on?
Ms Shuhyta: That’s being spent on the functions that my office was set up to deliver under the Public Health (Tobacco and Other Products) Act. That includes activities that support intergovernmental governance functions, support national strategy development and implementation, support reporting on the size and consequence of the illicit market and support advice on new laws. It is staffing to undertake those functions.
Senator ROBERTS: How many staff do you have—full-time equivalents?
Ms Shuhyta: We are budgeted for 24 full-time equivalents at the moment. We have 12 APS staff and we are undertaking a recruitment process to fill the vacancies, and we have a number of contractors on board to assist with those functions.
Senator ROBERTS: How do the taxpayers know this cost is justified by the outcomes it generates? Have you got KPIs?
Ms Shuhyta: I have reporting obligations under the legislation.
Senator ROBERTS: What are your KPIs under the legislation?
Ms Shuhyta: I have to report on all enforcement actions and consequences undertaken in the last financial year and the size and nature of the illicit markets so we can monitor that year on, year out. It’s also on excise and customs equivalent duties evaded.
Senator ROBERTS: So you can track your effectiveness?
Ms Shuhyta: That should be able to assist us and monitor the intergovernmental activities that are responding to this issue.
Senator ROBERTS: How do you know whether or not you are being effective?
Ms Shuhyta: It’s a good question. My role is to enhance intergovernmental cooperation and coordination to bring the efforts together across states and territories, across portfolios and across multiple points of the supply and demand chain. The value-add that the office brings is to support that force multiplication effect instead of all of the separate agencies working separately.
Senator ROBERTS: I’d make the comment that with the AFP there I would have thought they would be better equipped, knowing their expertise in criminology or countering criminology, to do that. Do you have a
starting point for your own measure of success? How many illegal cigarettes entered Australia in the last 12 months?
Ms Shuhyta: I think the ABF might have that data, in terms of cigarettes that they’ve seized coming into the border.
Mr Reynolds: To give an indication of how much we interdicted on the border, we interdicted 2.5 billion sticks of cigarette during the financial year 2024-25. We also interdicted over 439 tonnes of loose-leaf tobacco,
and we interdicted six million vape devices and accessories during that financial year.
Senator ROBERTS: Those are pretty impressive figures. Do you have any idea from that, extrapolating, how many came into the country?
Mr Reynolds: That is an assessment that will be in a report provided by the ITEC Commissioner to the government.
Senator ROBERTS: Would it be possible to get that number on notice?
Mr Reynolds: That is a matter for the government.
Senator ROBERTS: Minister, would it be possible to get that number on notice?
Senator Watt: Which number was that?
Senator ROBERTS: The AFP man can tell you. It’s the number of cigarettes that would have come into the country illegally extrapolated from the number of captured or known cigarettes.
Senator Watt: I’ll take that on notice, and we’ll do our best to answer that question.
Ms Foster: If I could just revert to your last question to Ms Shuhyta, I think there are two points to make. The AFP has an incredibly important role in this mission, but it’s quite a specific role, consistent with their mandate. Ms Shuhyta’s role is to try and make the whole work as effectively as possible together. She’s got an example of the work she’s doing with police forces across the jurisdictions which will illustrate the kind of value that the office can add.
Mr Reynolds: May I also add that the Australian Federal Police is a member of the national disruption group, and their expertise is being used as a part of that group to break the illicit tobacco business model.
CHAIR: Final question, Senator Roberts.
Senator ROBERTS: In January 2024, Minister Butler announced:
The Albanese Government cracks down on illegal tobacco imports The Albanese Government has committed $188.5 million to crackdown on the importation of illegal tobacco.
It’s been almost two years now. There must be some tangible benefit for the money. Commissioner, what reduction in the importation of illegal tobacco has resulted from this initiative so far? I know of police in
Queensland—I know of good citizens in Queensland—who are now going to the illicit tobacco trade because they see that the excise is so damn high.
Mr Reynolds: I mentioned the metrics before. That’s a 38 per cent increase compared to the previous financial year.
Senator ROBERTS: Is that what you’ve interdicted?
Mr Reynolds: That’s correct. I’ll just provide a very quick vignette from Queensland where, just recently, the Australian Border Force and the Queensland Police Service executed a series of warrants that resulted in one of the largest illicit tobacco and vape seizures in Queensland’s history. The total duty evaded for the combined seizures, of over 30.5 million cigarettes and 5.1 tonnes of tobacco, is estimated to be over $53.8 million with the estimated street value of over 4,000 vapes to be $20.05 million. It was an extremely successful joint operation between the Australian Border Force and the Queensland Police Service.
Senator ROBERTS: With respect, we can only assess whether it’s successful or not by comparing it to the total quantity of cigarettes coming in—tobacco and vapes coming in illegally—and finding their way to the
market. Apparently that is still huge, and it’s causing crime around Australia with tobacconists getting firebombed.
Mr Reynolds: The fact that we’re able to conduct that successful operation—that breaks that particular criminal syndicate. It’s only through breaking the criminal syndicates that we can reduce the scourge of illicit
tobacco in Australia.
Senator ROBERTS: Some people would argue that it’s only cutting the excise back to sensible levels that would break that, because people now find it’s worth going to the criminals to get their tobacco.
