Firebombs and gang wars: The bloody fallout of Australia’s tobacco crackdown
May 6, 2025
auto_awesome
Martin McKenzie-Murray, Associate Editor for The Saturday Paper, delves into the dark underbelly of Australia’s tobacco crackdown. He reveals how rising taxes have fueled a violent black market, exemplified by the tragic death of Katie Tangey, an innocent caught in gang crossfire. The conversation highlights the unintended consequences of high tobacco prices and the surge in illegal cigarette sales. Vaping's rise further complicates the landscape, raising questions about the true efficacy of current public health strategies.
Australia's tobacco crackdown has inadvertently fueled a violent black market, escalating competition among gangs and resulting in tragic civilian casualties.
High taxation and strict regulations on tobacco products have not only driven smokers to illicit options but also ignited a dangerous turf war among organized crime groups.
Deep dives
The Rise of the Black Market
Australia has witnessed a significant decline in smoking rates, now among the lowest in the developed world, yet this public health success has inadvertently fueled a violent black market for tobacco. The increase in taxes on cigarettes, alongside stringent regulations, has driven smokers towards illicit products that are more affordable than legal options. This illegal market has become a billion-dollar industry, attracting organized crime groups that engage in extortion and operate under violent turf wars. The severe tax hikes—raising the average cost of a cigarette pack significantly—have not only pushed smokers to find cheaper alternatives but have also created a culture of competition among criminals seeking control over this lucrative trade.
The Case of Katie Tangy
The tragic death of Katie Tangy, an innocent bystander who was killed in an arson attack linked to the tobacco wars, highlights the human cost of this black market. As she house-sat for her brother, she became an unintended victim when criminals targeting the illegal trade mistakenly attacked her residence, believing it was tied to rival businesses. Police have been explicit in stating that she had no involvement with the illicit tobacco market, underscoring how civilians are caught in the crossfire of this criminal conflict. The brutal reality of her death has left a profound impact on first responders, shedding light on the chilling consequences of the ongoing turf wars.
Questioning Tobacco Tax Policies
Economists have warned that excessive taxation on tobacco products, while intended to reduce smoking rates, may have contributed to the emergence of a dangerous black market. Recent data indicates that despite significant increases in taxes, the decline in smoking rates in Australia cannot be attributed to pricing alone, as vaping has gained popularity and potentially played a crucial role in this trend. Experts argue that if high taxes persist, the black market will continue thriving, exacerbating violence and criminal activity associated with the trade. There is a growing call for reevaluation of public health policies related to tobacco, as current strategies may be inadvertently supporting the illicit market rather than effectively reducing smoking.
In January, Katie Tangey was killed in a Melbourne house fire believed to be part of the ongoing “tobacco wars”. Police say she was an innocent victim and the arsonists got the wrong address.
The tobacco wars are driven by rival gangs fighting over a black market worth billions, and have been marked by firebombings, extortion and murder.
While headlines focus on the violence, skyrocketing government taxes on tobacco have long been fuelling the fire behind the scenes.
Today, associate editor for The Saturday Paper, Martin McKenzie-Murray, on how a public health initiative created the conditions for a deadly turf war.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
