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ABS Says 80% of Nicotine Used in Australia in 2025 Came From Illegal Sources

The data raises urgent questions about whether high tobacco taxes or stronger enforcement should be the priority to curb organised crime and rising nicotine use.

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Getting the help needed to give up cigarettes is more expensive than continuing to smoke, new WA-led research has revealed.
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Overview

  • The Australian Bureau of Statistics published experimental estimates on Wednesday showing about 80% of all nicotine consumed in 2025 was from illicit sources and national nicotine consumption rose roughly 40% since 2017.
  • The ABS combined wastewater testing for nicotine metabolites with sales and tax records to estimate total legal and illegal consumption, a method officials describe as experimental and broader than previous government counts.
  • Border and domestic enforcement have increased sharply, with Australian Border Force reporting more than 2.66 billion illegal cigarettes seized in the last financial year and states using closure powers to shut retailers.
  • State crackdowns, including Queensland’s 275 closure orders since November, have pushed illicit sellers off shop fronts and into online sales, home delivery and informal networks, making enforcement more complex.
  • The rise of the black market has cut excise receipts and prompted multi‑billion dollar Treasury downgrades, triggering a political split between calls to cut the excise and government officials who say tougher enforcement and border action are the answer.