The Briefing Record house prices + How our gov let $7 billion go up in smoke
Mar 31, 2025
Rohan Pike, a former Australian Federal Police officer who led an illicit tobacco task force, shares his insights on the hidden costs of Australia's rising house prices and the out-of-control illegal tobacco market. He discusses alarming trends connecting soaring property values to increased criminal activity and examines how high tobacco taxes are driving consumers to the black market. Pike emphasizes the dire need for policy reforms to address the $7 billion revenue loss and combat violent crime linked to illicit tobacco sales.
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Illegal Tobacco's Impact
- The illegal tobacco trade is booming in Australia, impacting the federal budget and leading to increased violence.
- People are turning to cheaper, illegal alternatives due to high government taxes on legal tobacco products.
Underestimation of Illicit Tobacco
- Despite task forces and efforts, the illicit tobacco problem has been underestimated and is now deeply entrenched.
- The scale of the industry makes suppression difficult, even with increased enforcement spending.
Violence in the Tobacco Trade
- In Victoria, rival gangs are using violence, including arson and extortion, to control the illegal tobacco market.
- Competition for access to shops selling these products drives the violence, while Sydney's market remains dominated by one group.