Jason Wood (La Trobe, Liberal Party, Shadow Minister for Community Safety, Migrant Services and Multicultural Affairs) Share this | Hansard source

I rise to speak on the Customs Tariff Amendment (Tobacco) Bill 2024. This bill increases excise duties for all tobacco goods and customs duties for tobacco products by five per cent a year for three years, starting 1 September 2023. As previously heard from the government member, the funding is to go into health and supporting people in the health system. It's obviously been taken into account when it comes to Treasury estimates et cetera.

The issue I have—I previously looked after this in Home Affairs as the assistant minister—is that, sadly, the black market when it comes to illicit tobacco is a growing market, and obviously we're now into the world of vapes. I go back to my time at the Organised Crime Squad, where work was done to take out those involved in illicit tobacco. In those days, there pretty much weren't actually laws to do much about it and so organised crime made a lot of money when it came to this.

When I was elected in 2004, we actually took a visit down to Customs. At that time they would seize container loads of tobacco. When we asked, 'What happens after that?' they said: 'Organised crime is involved. We don't want to touch it because of repercussions.' So a lot of work was done when it came to law enforcement under the previous government to establish one of the strongest regulatory regimes for tobacco in the world, with reforms to the Customs Act 1901 implemented in July 2019 to deter illicit trade in tobacco and enable strong action against criminal actors behind this. I'm also very proud that the previous government in July 2018 established the Illicit Tobacco Taskforce. It was very much a coordinated approach to targeting organised crime groups when it came to tobacco.

One of the issues which I've been greatly concerned about is the lack of input from state governments. At the Commonwealth level, we look after the borders. The ABF, can I say, have done a magnificent job when it comes to the borders. But when I've been taken through the mail houses by the ABF, it's like Santa's little factory. There's so much tobacco coming through that those involved in the security are picking out every third or fourth item which goes through the scanners as illegal tobacco. To be honest, it pretty much just gets put to one side—end of story. One thing we did do very well in the previous government was change it. I think it used to have stay there for three months. We got an immediate certificate, which could be issued by a court, to have that destroyed.

Importantly, on 18 March 2022, the former Minister of Home Affairs chaired a national ministerial meeting for counterterrorism and transnational and serious organised crime. The state and territory ministers responsible were there, and I actually spoke at that meeting, as the assistant minister, about illegal tobacco, how bad it was going to get and what was required. One thing I will say back to the states is that they have to give law enforcement—the police—a penalty notice. It's a hell of a lot easier for them to go and hand out a penalty notice to someone dealing with illegal tobacco, because it's so difficult. Even those reporting it—those legitimate people selling tobacco—are just getting outplayed by the illegal operators and organised crime groups. We are seeing in Victoria at the moment, when it comes to bikies and others, fire bombings. It was all to be expected. Sadly, it wasn't listened to. Organised crime are running out the good guys and attacking each other, and it's an entire mess down there.

If you took out those selling the illegal tobacco with a monster fine, where police could issue it, it would make such a big difference. At that meeting, ministers agreed to work together to consider coordinated efforts to combat illicit tobacco, including a response to recommendations of the Parliamentary Joint Committee on Law Enforcement inquiry into tobacco. Ministers agreed to reconvene in six months. Sadly, the Albanese government came into play after that, and nothing has happened when it comes to doing more to target organised crime. I know in Victoria police have now launched Taskforce Lunar again. They've now investigated over 30 fires linked to the tobacco wars in Victoria—if I can call them that. Since October, the taskforce has executed 70 warrants in tobacco and seized 108,000 vapes and three million cigarettes.

Can I just say: organised crime is involved in this. They always just follow the money, and the simple way to do it is to take the incentive away. You take the incentive away by going after those illegal operators with very tough penalties, then you take away the market. Sadly, that hasn't happened, and that's what we're getting down in Victoria. I'll leave it there.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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