price of cigarettes in australia
Cigarette Prices Australia 2025: Why a Pack Now Costs More Than Dinner
price of cigarettes in australia Firstly Cigarette prices Australia have hit mind-boggling levels in 2025. A pack of Marlboro Gold costs $62.99 for just 25 cigarettes. That’s more expensive than a decent restaurant meal in most Australian cities. The cheapest cigarette packets start at $34.50, while some premium brands cost close to $100.
Australian cigarette prices have shot up dramatically. The average price has jumped almost 8-fold since 1990, making Australia’s tobacco market the world’s most expensive. Australian smokers now pay nearly US$26 per pack. This price tag sits way above New Zealand’s US$22, which ranks second globally. The Australian Government’s tough taxation policy drives these steep prices, including the 12.5% annual excise increases that ran until 2020.
As I wrote in this piece, we’ll get into why cigarette prices have skyrocketed. We’ll look at how these increases affect different parts of society and the collateral damage that has emerged among other public health benefits.
The evolution of cigarette prices in Australia
The Australian tobacco market has seen remarkable price changes in the last three decades. Today, Australia has the world’s most expensive cigarettes.
Historical price trends since 1990
Cigarette prices in Australia doubled between 1990 and 2000. Popular brands cost 4.5 times more by 2015 compared to their 1990 price. Leading brands like Winfield saw their prices multiply nine times between 1980 and 2020. The early 1990s prices matched those from the post-World War II period after inflation adjustments. The prices stayed flat for a while but started climbing fast. The real stick prices doubled from 1990 to 2000.
Impact of excise increases from 2010 to 2025
The biggest price jump started in April 2010 with a 25% tobacco tax increase. Annual 12.5% excise increases from 2013 to 2020 followed, with inflation adjustments twice a year. The excise rate jumped from 26 cents per stick in 2009 to 62 cents in 2017. The tobacco excise now stands at about $1.40 per cigarette. A new policy started in September 2023 that adds 5% yearly increases through 2026.
How much do cigarettes cost in Australia today?
Australia’s tobacco excise ranks among the world’s highest at more than $1.30 per stick. This pushes average pack prices above $50. The cheapest 20-pack costs around $33.50 at major retailers. Premium options can cost up to $113.20 for a 50-pack. A standard 20-pack of JPS cigarettes costs about $41.50 ($2.08 per stick) as of March 2025.
Cigarette carton prices Australia: then vs. now
Carton prices have shot up along with individual pack prices. A week’s worth of cigarettes took 14% of an average full-time working week in 2023. The financial cost keeps growing. Winfield 25s price jumped by $17.20 between 2009 and 2017 alone. Experts think a 30-pack of cigarettes will cost $100 by 2030.
Why cigarette prices are rising so fast
Australian cigarette prices continue to climb due to policy decisions rather than market forces. Let’s get into what’s behind these unprecedented increases.
Annual excise increases and indexing
The Australian government takes a two-pronged approach to tobacco taxation. Excise duty rates increase twice yearly (March and September) based on Average Weekly Ordinary Time Earnings (AWOTE). The government implements additional scheduled increases periodically. Tobacco excise increased by an additional 5% annually from September 2023, and this will continue through September 2025. The government plans to reduce the “equivalisation weight” for roll-your-own tobacco from 0.7 to 0.6 grams by 2026, which effectively raises the per-kilogram duty.
Public health rationale behind price hikes
Price increases have emerged as the most effective tobacco control measure. Research shows that higher cigarette prices prevent people from starting smoking, help them quit, and reduce overall consumption. Young people respond more to price changes – a 10% increase in cigarette prices leads to a 5-15% reduction in smoking among people under 18, compared to 3-7% for adults. Studies indicate that consumption dropped most dramatically during periods of high price increases.
Role of inflation and wage indexing
Cigarette taxes increase faster than inflation, unlike most consumer goods. Australia ties tobacco excise to AWOTE instead of the Consumer Price Index. This strategy makes cigarettes less affordable over time, whatever the wage growth. Tobacco excise merely kept pace with inflation before 2010, but now it’s a big deal as it means that inflation rates. price of cigarettes in australia
Comparison with other consumer goods
Cigarette prices have risen nowhere near the rate of other essential items. Tobacco costs jumped by 343% between 1996 and 2016, while gas/household fuel increased by 181%. Basic food items like bread and milk went up by just 76% and 38% respectively. This pricing strategy has made cigarettes cost more than dinner at many Australian restaurants (https://cheapcartoncigarettes.com/).
Unintended consequences of high cigarette prices
Higher cigarette prices have helped public health goals, but they’ve created several unexpected problems throughout Australian society. price of cigarettes in australia
Financial burden on low-income smokers
Smoking rates stay stubbornly high among lower-income groups in Australia despite steep cigarette prices. Low-income households with 2-pack-per-day smokers spend up to 25% of their income on cigarettes. Research shows that lower-income smokers don’t cut back as much as expected when prices go up. Studies after the Master Settlement Agreement in the US revealed that lower-income smokers (under $25,000 annually) reduced smoking by only 0.39 percentage points per dollar increase. Higher-income groups cut back by 0.90 percentage points. This suggests that tobacco taxes meant to discourage smoking end up hurting those who can least afford them.
Growth of illicit tobacco trade
The illicit tobacco market has surged as legal cigarette prices now exceed $50 per pack. Black market cigarettes cost about $25 per pack—half the store price. Border authorities have seen a 400% jump in seized illegal cigarettes over five years, from 400 million to 1.7 billion sticks. The Australian Taxation Office expects to lose $2.70 billion in excise revenue for 2022-23. Treasury had to cut tobacco tax revenue forecasts by $5 billion. About one-third of tobacco products in Australia now come through illegal channels.
Stigma and social exclusion
Smokers face increasing social rejection beyond just financial pressures. Research shows that tobacco denormalization policies have led to stigma against remaining smokers. This discrimination shows up in company policies that refuse to hire smokers. While stigma might push some people to quit, it hits already disadvantaged groups the hardest. People with higher education levels notice more smoker-related stigma than those with less education. Black and Latino respondents report less stigma than White respondents.
Tobacco industry lobbying and misinformation
The tobacco industry fights against public health measures through heavy lobbying. They hired 262 federal-level lobbyists in the US during 2023, with 75.57% being former government workers. State-level tobacco industry lobbyist registrations reached 1,027 in 2024—up 10.7% from 2023. The industry keeps pushing a false story that higher tobacco taxes directly cause more illegal trade. They use this message to influence tax policy by creating anti-illicit partnerships with governments.
What can be done to balance health and equity
Australian cigarette prices keep rising, and policymakers must balance tobacco control with growing social inequities. This balance demands smart approaches that weigh both public health outcomes and social justice issues.
Redirecting tax revenue to cessation programs
Tobacco taxes generate massive revenue—$9.80 billion in excise tax alone. This creates opportunities to fund detailed cessation support programs. Master Settlement Agreement funds, general funds, and tobacco taxes currently provide most state quitline funding. Tobacco tax revenue makes up less than 3% of total government revenue. This means redirecting these funds won’t significantly affect the budget.
States can fund more anti-tobacco programs when they smartly allocate tobacco tax revenues. ThaiHealth Foundation in Thailand receives funding through a 2% surtax on tobacco products, which helps various health promotion activities. California took a similar approach with Proposition 99, which put 20% of new tobacco tax revenues into detailed tobacco control programs.
Tailoring support for disadvantaged groups
Australian cigarette packs now cost more than $50, making targeted support crucial for disadvantaged smokers. Research shows community service organizations offer promising venues to help disadvantaged smokers quit. The staff sees quit support as part of their job, but they face challenges like competing priorities and limited resources.
Lower socioeconomic status smokers need specific support:
- Money incentives and access to free or cheaper nicotine replacement therapy
- Programs that help with related issues like domestic violence and psychosocial problems
- Apps that build supportive new social networks
Monitoring illicit trade and enforcement
Illicit tobacco reached $6 billion in 2022-23, which makes stronger enforcement crucial. The Illicit Tobacco Taskforce (ITTF), a 2018 initiative, works to disrupt organized crime in tobacco trade. This multi-agency team uses practical strategies to find and break up criminal networks that supply illegal tobacco.
Law enforcement alone won’t solve the problem. Policy solutions must tackle the mechanisms that fuel illicit trade, including poverty, political instability, and organized crime.
Engaging communities in policy decisions
Tobacco control policies work better when communities participate, especially those most affected by high cigarette prices. Community input ensures policies tackle health-related issues like targeted marketing and healthcare barriers.
People strongly support cigarette tax increases across regions, political parties, and demographic groups. Polls show they want this money to go toward tobacco control efforts. Policies better serve community needs while meeting tobacco control goals when people help make decisions.
Conclusion
Australian cigarette prices have hit record highs and this has changed how people think about smoking costs. This piece shows how tough tax policies and health initiatives have turned cigarettes from a regular expense into a luxury item that costs more than eating out. The strategy works well as smoking rates continue to drop across the population.
These price hikes create social problems too. Poor smokers struggle with money while the black market for tobacco grows bigger. Smokers face more social rejection, which pushes away vulnerable people who can’t quit.
Finding the right balance between tobacco control and fairness is crucial. Tax money should go to complete quit-smoking programs that help disadvantaged communities. Law enforcement needs to crack down on illegal sales without treating addiction as a crime.
Australian leaders face a choice. They can keep raising prices blindly or create smarter plans that control tobacco use while helping those hit hardest by high costs. The community’s voice must shape fair solutions that protect public health without making social gaps wider.
Cigarette prices in Australia will keep going up. By 2030, a regular pack might cost over $100. Websites like cheapcartoncigarettes.com show current prices, but quitting remains the best option instead of looking for cheaper tobacco.
Australia’s story teaches important lessons about global tobacco control. Higher prices help public health, but they need strong support systems and fair treatment to achieve their goals.
FAQs
Q1. How much does a pack of cigarettes cost in Australia in 2025? As of 2025, the average price for a pack of cigarettes in Australia exceeds $50. Premium brands can cost up to $62.99 for a pack of 25 cigarettes, while the cheapest options start at around $34.50 for a pack of 20.
Q2. Why are cigarette prices so high in Australia? Cigarette prices in Australia are high due to aggressive taxation policies, including annual excise increases and indexing to average weekly earnings. These measures are part of the government’s strategy to reduce smoking rates and improve public health.
Q3. How have cigarette prices in Australia changed over time? Since 1990, cigarette prices in Australia have increased almost 8-fold. The most significant increases began in 2010 with a 25% tobacco tax hike, followed by annual 12.5% excise increases from 2013 to 2020, and additional 5% annual increases from 2023 to 2026. price of cigarettes in australia
Q4. What are the consequences of high cigarette prices in Australia? High cigarette prices have led to reduced smoking rates but also created unintended consequences. These include a disproportionate financial burden on low-income smokers, growth in the illicit tobacco trade, increased social stigma for smokers, and aggressive lobbying from the tobacco industry. price of cigarettes in australia
Q5. How is Australia addressing the challenges created by high cigarette prices? Australia is working to balance health and equity by redirecting tax revenue to cessation programs, tailoring support for disadvantaged groups, strengthening enforcement against illicit trade, and engaging communities in policy decisions. These efforts aim to maintain effective tobacco control while addressing growing inequities. price of cigarettes in australia