Malarndirri McCarthy (NT, Australian Labor Party, Assistant Minister for Indigenous Australians) Share this | Hansard source

Progressing further with the responses I gave the senator this morning in terms of the ATO and the Illicit Tobacco Taskforce, I say that the government supports the coalition's intention to combat the trade in illicit tobacco and e-cigarette products. The government is expanding compliance activities to address illicit tobacco, and we are working on finalising these details and will have more to say in the very near future.

This builds on existing significant investments the government has made in compliance measures, including as part of the October 2022-23 budget. The government extended the existing ATO shadow economy compliance program for a further three years from 1 July 2023. The ATO led program received $240 million in departmental funding from 2023-24 to 2025-26, with an estimated increase in tax receipts of $2.1 billion. The extension of the shadow economy program will enable the ATO to continue a strong and coordinated response to target shadow economy activity, including illicit tobacco, to protect revenue and level the playing field for those businesses that are following the rules.

As part of the 2023-24 budget the government also provided the ATO $223.9 million in funding to extend and merge the Serious Financial Crime Taskforce and the serious organised crime program over four years to 30 June 2027. This will maximise the disruption of organised crime groups, including those involved with illicit tobacco.

The Serious Financial Crime Taskforce and the serious organised crime program are currently separately funded ATO-led cross-agency collaborations between the ATO, national policing and other law enforcement and regulatory agencies targeting serious and organised crime groups, and serious financial crime and tax evasion. The government estimates that this will bring in $753.9 million in revenue and $279.5 million in receipts in the four years to 30 June 2027, including $32.7 million of GST paid to the states and territories.

The Illicit Tobacco Taskforce continues to combat illicit tobacco and brings together capabilities of the ATO, the ABF, the Australian Criminal Intelligence Commission, the Australian Transaction Reports and Analysis Centre, the Commonwealth Director of Public Prosecutions and the Department of Home Affairs. In the 2023-24 income year there have been 69 seizures and convictions so far, as at 30 September 2023, with an estimated excise duty value of $18 million. This strong comprehensive action, complemented by enhanced compliance and enforcement activity across all governments, will turn the tide.

I am aware that Senator Canavan raised this in his questions earlier. The vaping reforms were the focused of a joint meeting of all Australian health and police ministers on 23 November. At this important meeting, ministers agreed to task officials with developing a national enforcement framework for vaping products, to stamp out unlawful vapes in the community and prevent illegal markets from emerging. It was agreed that a multi-agency national vaping working group be established to oversee development and implementation of the national enforcement framework. All of this comprehensive action, complemented by enhanced compliance and enforcement activity across all governments, will turn the tide against the rising use of vapes by young Australians and will reduce overall tobacco use. So the government supports the coalition's intentions.

Question agreed to.