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The rise in black market tobacco and cigarette sales has seen a large hit to the federal budget, costing the Commonwealth $6.7 billion in lost revenue annually. Tax increases have lifted the Changes to tobacco products in Australia in 2025 Australian Government Department of Health, Disability and Ageing 13.5 How affordable are cigarettes in Australia? Tobacco in Australia Cigarette prices have surged from 3 in 2003 to 22 in 2026, reflecting a steep rise over the past two decades. The steady increase highlights tighter taxation and growing regulatory pressure on

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