Australia

Illicit Consumption, including Chop-chop, was estimated at 2.7 billion cigarettes, equivalent to 13.7% of Total Consumption. In volume terms, Illicit Consumption declined by 8.1% in 2017.
Australia
Illicit Trade Volume (Bn)
2012 2013 2014 2015 2016 2017
Illicit trade Incidence (%)
2012 2013 2014 2015 2016 2017
Total Tax Loss (AUD Mn)
2012 2013 2014 2015 2016 2017

Composition of Cigarette Consumption

19.7Bn Cigarettes
  • Cigarettes
    Bn
  • Legal Domestic Consumption (LDC)
    16.9
  • Non-Domestic Legal (NDL)
    0.1
  • Non-Domestic Illicit
    1.3
  • Chop-chop
    1.4
Total Cigarette Consumption
19.7Bn
Total Illicit Consumption
2.7Bn

Estimated Excise Tax Loss

AUD 1,872.3 Mn
  • AUD
    Mn
    USD Mn
  • Lost excise revenue
    1,630.0 1,229.8
  • Lost GST revenue
    242.3 182.8
Actual revenue from excise duties on tobacco
AUD 10,612.0 Mn
Estimated Tax Loss From Illicit Consumption
AUD 1,872.3 Mn

Australia

  • The decline in Illicit Consumption was underpinned by a 21.9% reduction in Chop-chop volumes, which was partially offset by a 14.4% increase in the consumption of Non-Domestic Illicit cigarettes.

  • Legal Domestic Consumption declined by 9.0%, resulting in a slight increase in Illicit Incidence, rising by 0.2 percentage points from to 13.5% to 13.7%.

  • Our estimates indicate that the Tax Loss due to Illicit Consumption of cigarettes and Chop-chop rose by 5.8% to AUD 1.9 billion in the fiscal year 2016/17, driven by higher Excise Tax rates.

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