Internal tobacco industry data estimates the illicit tobacco market now makes up 64 per cent of all tobacco consumed in Australia and 82 per cent of the total nicotine consumed.

And as of September the size of that illicit market is estimated to be worth almost $10 billion.

Australia's love affair with illegal tobacco has seen the federal government's tobacco excise revenue fall dramatically since 2020, from more than $16 billion to $7.4 billion in 2025 , with further falls forecast.

Last month the federal excise on tobacco rose a further 5 per cent on top of regular indexing.

Now the average price for a legal packet of 20 cigarettes is more than $40. The tax on an individual cigarette is now $1.49.

Many large retailers have reported plummeting legal tobacco sales.

US economist Dr

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