Violence associated with the illegal tobacco trade is escalating, with increasing incidents of arson and threats directed at legitimate retailers and their families.

The majority of illegal tobacco smuggled into Australia originates from China, and these products are sold without the excise tax and health warnings that accompany legal cigarettes, making them significantly cheaper.

The illicit tobacco market in Australia has skyrocketed from $980 million in 2016-17 to over $6 billion in 2022-23, fueled by economic pressures and a growing demand for affordable cigarettes.

Organized crime is increasingly drawn to the illegal tobacco trade due to its larger market and lighter penalties compared to illicit drugs, allowing criminal groups to reap substantial profits.

The involvement of organized crime in the illegal tobacco market has dire consequences for ordinary citizens, who often find themselves caught in the crossfire of gang violence.

Regulating illegal tobacco sales presents significant challenges for authorities, as both legitimate businesses and public safety are jeopardized.

Community concerns regarding illegal tobacco shops include heightened crime rates, increased insurance premiums, and fears of violence, leading to calls for stricter regulations and enforcement measures.

In a related incident, a woman in Sydney was discovered with $2 million in cash in her car, which police allege is linked to the illegal tobacco trade.

In response to the growing illegal tobacco market, NSW Premier Chris Minns has criticized the federal tobacco excise and introduced new laws aimed at penalizing illegal tobacco sales.