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Introduction
With prices for legal tobacco expected to be AUD$25 a packet by 2016, Australia will soon be home to the world’s most expensive tobacco (KPMG, 2015). Illicit marketplaces have long existed throughout the world and thrive or falter based on the actions of surrounding governments. Just as outlawing a product can create demand, increasing prices on legal products can also stimulate a black market. The decision by the Australian Government to inflate the price of tobacco beyond the reach of most consumers is being capitalised upon by international organised crime syndicates, seeking the high profitability of this market (ACC, 2012). The public health initiatives of this policy produce positive health outcomes; however, little attention is being given to the expanding black market, which may also be propping up global arms trade (ACC, 2012), illicit drug production (AFP, 2013) and terrorism (Coker, 2003; Rawley and Centre for International Maritime Security, 2014). These links have been investigated and confirmed by multiple Australian law enforcement agencies and regulatory bodies with the Australian Crime Commission (ACC) (2013), The Australian Federal Police (AFP) (2013), The Australian Customs and Border Protection Service (ACBPS) (2015a, 2015b) and The Australian Taxation Office (ATO) (2015a), all releasing statements regarding illicit tobacco smuggling and its presence in the country.
The European Union (Philip Morris International, 2014) and the USA (Reuter et al., 2015) have both seen a flourishing trade in illicit tobacco linked to organised crime, and this is despite the fact that the legal price of tobacco in these areas is far below the Australian cost [the average price in the UK is AUD$13, and in the USA, it is AUD$6-13, depending on which state (Mahapatra, 2014)]. There needs to be a cohesive approach to the problem by all Australian stakeholders to prevent widespread tobacco smuggling. This article will provide an overview on the Australian illicit tobacco marketplace, including the perspectives of the government and community stakeholders. Although public data on the topic are sparse, the available data on the Australian marketplace for illicit tobacco will be interpreted and critiqued, in addition to a scrutiny of the previous efforts of the Australian Government to reduce tobacco usage. The current market issues regarding the trade will also be discussed, including the possible future...