The Federal Senate inquiry into Australia’s illicit tobacco crisis released its final report last week, with MGA’s evidence and recommendations cited throughout the report.

MGA made a formal written submission to the inquiry and CEO Martin Stirling also appeared before the Senate Legal and Constitutional Affairs References Committee to give oral evidence on behalf of independent retailers.

It is pleasing to see the Committee has listened to the experiences of our members, with MGA’s evidence used throughout the report to highlight the broader threat of the illicit tobacco market to legitimate businesses and communities, the aggression being experienced by retail workers, risks to younger employees and the significant security and staffing costs being borne by small businesses.

Several recommendations made by MGA have also been reflected in the Committee’s final recommendations.

Key findings and recommendations

The report recognises that the illicit tobacco market has become a systemic threat to legitimate businesses, workers and communities and that substantially stronger and more coordinated national action is required.

Key recommendations and areas identified by the Committee include:

• reconsideration of current tobacco excise settings, including a pause on further excise increases;
• stronger national enforcement and coordination to disrupt the illicit tobacco trade;
• improved enforcement capability and border controls; and
• greater public education about the illicit tobacco market.

The report also discusses MGA’s proposal for a formal mechanism to continually assess tobacco excise settings against the impact of the illicit market and Australia’s enforcement capability.

What does this mean for MGA members?

The report does not itself change the law or government policy, but it represents significant recognition at the federal level of what independent retailers have been experiencing on the ground.

Members operating legitimate businesses are being asked to compete with illegal operators selling products at a fraction of the legal price, while carrying the additional costs and risks associated with increased security, staffing and customer aggression.

MGA’s role is to ensure those real-world impacts are understood by decision-makers – and this report demonstrates that our members’ experiences have been heard.

MGA CEO Martin Stirling said the focus must now turn to action.

“Our members have been telling us for years that the illicit tobacco market is affecting the viability of legitimate businesses and creating very real safety concerns for the people working in their stores.

“We are pleased to see MGA’s evidence cited throughout this report and a number of the issues and recommendations we put before the Committee reflected in its findings.

“This is an important step, but the report itself does not solve the problem. MGA will continue advocating to the Federal Government for meaningful action that disrupts the illicit market, protects legitimate retailers and their employees, and helps consumers understand the consequences of supporting the illegal tobacco trade.”

Read the Senate Committee Report

MGA will continue engaging with government as it considers the Committee’s recommendations and will keep members informed of developments.