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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Australia’s 2023–24 Federal Budget set an additional tobacco excise increase of 5% a year for three years, beginning 1 September 2023, on top of normal indexation. That adds up to 15% in additional excise over the staged schedule—but it does not mean retail cigarette prices were shown to rise by exactly 15%. The tax change and the price on a shop shelf are different measures.
Did cigarette prices go up 15% in Australia?
The Budget announced a cumulative 15% increase in tobacco excise and equivalent customs duty over three years, in addition to ordinary indexation. The figure describes the additional tax schedule, not a measured change in the price consumers paid for cigarettes. The Australian Government’s Budget Paper No. 2 sets out the tax measure; it does not establish that every cigarette price rose by exactly 15%.
Retail prices can reflect factors beyond excise, so a specific shelf-price increase needs separate retail-price evidence. No precise 15% retail increase is established by the official material describing this Budget measure.
When did the tobacco tax increases start?
The additional increases began on 1 September 2023 and were scheduled at 5% annually for three years, alongside normal indexation. The Australian Government described the measure as: “Tax on tobacco will be increased by 5 per cent per year for 3 years in addition to normal indexation.” That wording appears in the Department of Health announcement, Taking action on smoking and vaping.
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How did the measure affect roll-your-own tobacco?
The measure was not limited to manufactured cigarette sticks. It also progressively changed the weight used to calculate excise-equivalent duty on tobacco products taxed by weight, including roll-your-own tobacco. The “equivalisation weight” was lowered from 0.7 grams toward 0.6 grams in steps each 1 September, starting in 2023; the 0.6-gram weight took full effect on 1 September 2026. The timetable is set out in Budget Paper No. 2 and summarized in the Treasury’s FOI 3812 – Tobacco excise.
What was the Government’s stated aim?
The Government presented the tax change as part of its response to smoking and vaping and the National Tobacco Strategy 2023–2030. Its stated aim was to reduce tobacco affordability and smoking prevalence.
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What did the Budget forecast for revenue and GST?
Budget Paper No. 2 forecast that the package would raise receipts by $3.3 billion and increase GST payments to states and territories by $290 million over the five years from 2022–23. These are Budget estimates, not reported totals of revenue or GST payments ultimately realized.
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What the 15% figure does—and does not—tell you
- It describes: the cumulative additional excise and equivalent customs duty increases scheduled at 5% per year for three years.
- It does not establish: that retail cigarette prices rose by exactly 15% or that every product’s shelf price changed by the same amount.
- It also covered: a staged adjustment to the weight basis for taxing roll-your-own and other weight-taxed tobacco products.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
