Efforts to return Australia to surplus continue – smokers, please don’t stop

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Not good news for Aussie smokers this morning:

Tobacco excise will be increased by 60 per cent, or $5.3 billion, over the next four years, in the biggest individual tax increase designed to return the federal budget to surplus by 2016-17.

  • Beginning on December 1, after the election, the excise will be increased by 12.5% each year for four years
  • The hikes will be in addition to already scheduled automatic excise increases

Cigarettes up $5.3 billion to save surplus Australian Financial Review (gated)

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

11 Comments

  1. Wow. I heard from an Australian couple two years ago that cigarettes were $20/pack down there. I wonder what they are now. LOL

  2. Hi Eamonn. So whats a pack of 25 worth in Aussie Land ?

  3. Hi John – I’m not a partaker so I don’t have first-hand knowledge, and health laws mean cigarettes are not even displayed in shops (kept behind closed cupbpard doors!). But $18 – $20 for a pack is about right. Still cheaper to have a ciggie than a cup of take-way coffee though :-D

  4. Transition into other sectors…hehe.
    Gives me an idea…down anchor 12 miles off shore and set up a shop and flog off $2 cigarette packets from Asia for $10

  5. Wow, you almost have to be a futures broker to live there. lol

  6. smuggling cigarettes must have a bright future!

  7. “So whats a pack of 25 worth in Aussie Land ?”

    It was $20 last time I looked, it’s going up to $25 after four years. Rightly so. Since everyone get free healthcare smokers ought to be chipping in a little extra.

  8. I disagree. I’m an ex smoker, so I’m not ‘talking my book’ here. But, I think it’s hypocritical to blame smokers for hospital costs when rates of fast food consumption are far higher and the outer suburbs have obesity rates to match. Tax McD’s, Hungry’s and Kentucky Fried Cat. Why won’t they? They’re too chicken! They’d have to take on businesses which are still allowed to advertise during election campaigns. Much easier to attack smoking which is mostly prevalent amongst the poor and the disabled (the latter is a ~25%).

  9. Hey, I’ve got an original idea. How about no tax and have the politicians cut down on their spending.

  10. No Tax? A world where you have to pay a fee for police attendance? Where the ignorant become even more so, thanks to a lack even basic education? Where democracy isn’t free because you must pay a fee before you can vote? No thanks. I’d rather not live out ‘The Lord of the Flies’. Just dumping useless business subsidies and middle class welfare will do just fine.

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