The growing impact of Australia’s illicit tobacco trade was placed firmly under the spotlight during a recent Senate inquiry, with industry representatives, small business owners and retailers delivering compelling evidence about the damage being caused to legitimate businesses and local communities.
Appearing before the inquiry, MGA CEO Martin Stirling highlighted the challenges facing lawful retailers who continue to meet licensing, taxation and regulatory requirements while competing against illegal operators who openly flout the law.
The committee also heard evidence from Theo Foukkare of the Australian Association of Convenience Stores (AACS), who described the increasing safety risks facing retail workers. In one of the hearing’s most confronting moments, Mr Foukkare told the inquiry that some retailers have been forced to establish “safe rooms” in their stores where staff can retreat in the event of an attack.
Powerful testimony was also provided by independent retailers. Small business owner David Allen warned senators that the illicit tobacco crisis was having serious consequences for legitimate businesses and could signal broader challenges ahead. He told the inquiry that his business was in “terrible trouble” and described the situation as a warning of what could happen across other product categories if the illicit market continues to grow.
Throughout the hearing, witnesses described significant declines in legal tobacco sales, rising security concerns, growing business costs and increasing frustration at the continued operation of illegal tobacco stores within local communities.
MGA also raised concerns that organised criminal networks involved in illicit tobacco are increasingly moving into illicit alcohol, creating the risk of further harm across the retail sector.
MGA will continue advocating for stronger enforcement and coordinated action to protect legitimate retailers, their staff and the communities they serve.
Read the full Senate hearing transcript:
Senate Inquiry Transcript – Illicit Tobacco Market Hearing
