The Albanese government is introducing legislation to federal parliament that will overhaul Australian customs rules to make it easier to seize illegal "chop shop" tobacco. Previously, authorities had to prove illicit tobacco was knowingly imported illegally, but the new laws will allow charges based on factors such as cigarettes being sold below the cost of excise and GST, unusual packaging, or concealment, giving Border Force and state and territory police stronger powers to pursue organised crime groups behind the trade.

The reform comes amid growing political pressure over the illicit tobacco market, with the Coalition pledging an 80 per cent cut to tobacco excise and One Nation proposing a 75 per cent cut, in efforts to undercut the black market. According to the Australian Bureau of Statistics, around 80 per cent of tobacco consumed in 2025 was illegal, up from just 12 per cent in 2017, while the excise has more than tripled and risen 34 per cent since Labor took office in 2022 — a rise critics link to a wave of fire bombings targeting tobacco and vape retailers. Prime Minister Anthony Albanese has left open the possibility of cutting the excise but stressed states must also crack down on shops selling illegal products, while Assistant Customs Minister Julian Hill said the new powers would target criminals' assets, including cash, houses, cars and boats.