Stephen Jones (Whitlam, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Tobacco smoking remains the leading cause of preventable death and disability in Australia. It claims the lives of around 20,500 Australians every year. As part of our National Tobacco Strategy, the government is continuing to take action to reduce the consumption of tobacco products.

This legislation will increase the tax on tobacco by five per cent for three years, in addition to the ordinary annual indexation.

These changes build on Labor's proud commitments to decisively tackle tobacco deaths and illnesses in Australia. We introduced plain packaging over a decade ago. When those reforms were introduced, smoking rates in Australia were around 16 per cent. The latest data has it at around 11 per cent, the equivalent of around one million fewer Australians smoking.

These changes will drive those rates down further, because, as the health minister has said, a higher priced cigarette is a less attractive cigarette. Increasing tobacco prices is one of the most effective measures to reduce smoking.

Our goal is to reduce smoking rates to below 10 per cent by 2025, and to five per cent or less by 2030.

We know however that simply raising prices is not the only solution to the harms caused by tobacco in Australia.

That's why the revenue generated by this legislation will form part of government funds being invested into the healthcare system, helping support the health of current and former smokers and vapers.

Our 2023-24 budget and MYEFO included $832 million to fund measures to protect Australians from the harm caused by tobacco and vaping products.

Better support for those wanting to quit, better support for those who have quit to remain healthy, and a better regulatory framework for vaping in Australia. That is the goal.

The measures in the bill were previously moved as Excise Tariff Proposal (No. 1) 2023 on 7 August 2023. Consistent with normal parliamentary practice, the excise tariff proposal now requires incorporation in the Excise Tariff Act.

This bill is complemented by the Customs Tariff Amendment (Tobacco) Bill 2024.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.