Labor Premier Chris Minns breaks ranks to slam Anthony Albanese's government AGAIN

By CAITLIN POWELL - NEWS REPORTER and CALLUM GODDE FOR AUSTRALIAN ASSOCIATED PRESS Published: 07:15, 12 June 2026 | Updated: 07:15, 12 June 2026 NSW Premier Chris Minns has criticised Anthony Albanese's tobacco tax policy for a second month in a row, claiming illegal sales are fuelling Australia's black market.  Data shows four in five vapes and cigarettes consumed in Australia in 2025 were bought on the black market, sparking fresh debate about cutting the tobacco excise. The black market share of total nicotine consumption has climbed from 12 per cent to 80 per cent from 2017 to 2025, according to the Australian Bureau of Statistics (ABS). The tobacco excise has tripled over the past decade to $1.52 a cigarette, pushing the average price of a legal pack of 25 beyond $50. Under-the-counter black market equivalents are sold for less than half that price. Estimates in May's Federal Budget revealed the tobacco black market wiped $6billion from tax revenue in the five months since the previous fiscal update in December. The excise was forecast by the Budget to fall to just over $2billion a year by 2030 after raking in more than $16billion in 2020. Minns has broken ranks with Labor to criticise the federal government for not reviewing its policy amid the ongoing battle against illegal tobacco. NSW Premier Chris Minns (pictured) criticised federal Labor's tobacco tax policy, claiming illegal sales are fueling criminal behaviour The black market share of total nicotine consumption climbed to 80 per cent by 2025, according to the Australian Bureau of Statistics (Pictured, illegal tobacco seized by WA Police) 'I know the reason for the excise was to increase the cost of cigarettes so that people quit,' he told reporters on Friday. 'The grave reality today is that cigarettes are cheaper than they've ever been, and the reason is that you can buy illegal cigarettes in many places across the state and the country, far cheaper than the legal (approach). 'It's my view, and I won't be alone in this, that the excise of legal tobacco is in fact fueling a black market that is infecting cities, states and regional communities. 'That's particularly the case in New South Wales, so I think we need a rethink on the excise.' Minns conceded illegal tobacco is not the sole reason for gangland violence but that a 'lot of the violent thugs that we have in New South Wales come down this black market'. The premier said more than 200 illegal tobacconists had recently been shut down across the state, according to the latest data from NSW Health.  'We'll probably close another 200 in the coming months, and we'll probably close another 200 in the months after that,' he said. 'But at some point there's got to be a recognition that it continues to happen.'  Prime Minister Anthony Albanese (pictured with Communications Minister Anika Wells) said he will continue with the current tobacco excise policy announced in his Federal Budget in May Minns said the tobacco excise 'wasn't working' just 24 hours after the Federal Budget was announced in May.  'This is the only tax in the world that has doubled but the revenue has halved,' he said at the time. Economists have argued that decisions by successive governments to increase the tobacco excise have created a massive profit incentive for organised criminals in a thriving black market.  Assistant Minister for Customs, Julian Hill, told the Daily Mail the Albanese government will continue with its current trajectory. 'The Government will not surrender our nation's health policy to organised criminals or Big Tobacco who just want to see a new generation of Australians hooked on nicotine,' he said. 'While the Government has always acknowledged that the illicit trade might grow before it declines, there is very early evidence suggesting that in states such as Queensland with strong closure powers and landlord penalties nicotine users return to the legal market when the sleazy illegal shops have been forced shut.  'Other jurisdictions can learn from Queensland where enforcement efforts have focused on shutting down 100 per cent of the dodgy shops in a town or region with long term closure orders and by empowering landlords to terminate leases.' The Prime Minister also doubled down when asked if he would consider reducing the tobacco excise during a press conference on Thursday. 'We've just had a Budget. And so, our policies as they exist are in that Budget, but we are taking action against the illicit tobacco trade. We'll continue to do so,' he said. Asked if the current policy might be broken in the wake of ABS' revelations that illicit tobacco has actually risen, Albanese repeated the sentiment. 'We're taking action, whether it be the enforcement of suppliers are shutting down, of shops that are selling illicit tobacco, the taking of action of fines and taking police action against what is of course a crime,' he said. No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. 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