How smoking makes Australians poorer – and what we can do about it

As cigarette prices have risen, so too has concern about the impact on low-income households. Critics argue tobacco taxes place an unfair burden on people with fewer resources, while contributing to a growing illicit market.

Making cigarettes cheaper may seem a logical fix. However, our study suggests it would risk making smoking-related poverty in Australia worse overall…

Rather than foregoing the estimated $3.56 billion from tobacco tax revenue in 2026-27 through tax cuts, the Australian government could earmark these funds to reducing smoking and to cover the healthcare costs of smoking.

This could include making all smoking cessation medicines free, expanding behavioural support, controlling illegal tobacco sales and providing dedicated programs for groups that are most harmed by smoking.

Such an approach would directly assist people experiencing financial hardship, while reducing smoking-related disease and pressure on health systems.