Australia's Coalition, under the leadership of Angus Taylor, has announced an ambitious proposal to reduce tobacco excise by 80 percent. This substantial tax cut would lower cigarette prices by approximately $30 per packet, bringing them to levels not seen since 2013. The measure represents a significant shift in tobacco pricing policy within the country.

The Coalition frames the cut as a strategy to combat the growing illicit tobacco trade by making legal cigarettes more price-competitive. However, the timing closely follows One Nation's proposal for a 75 percent excise reduction, leading critics to suggest the policy is equally motivated by political positioning against Pauline Hanson's party. Angus Taylor has pushed back against suggestions the Coalition adopted the policy from One Nation, instead emphasising the economic rationale for undercutting illegal market alternatives.