Pauline Hanson reveals her bold plan to make cigarettes cheaper in Australia: 'Labor's policy is failing'

By NICHOLAS COMINO, POLITICAL REPORTER, AUSTRALIA Published: 01:00, 18 August 2026 | Updated: 01:21, 18 August 2026 One Nation leader Pauline Hanson has pledged to slash tobacco excise by 50 per cent, bringing the price of ciggies to $22 a packet. The proposal, announced on Tuesday, would also freeze excise indexation for three years and be paired with a major crime crackdown on illegal tobacco networks. Hanson said the nation's tobacco excise system had failed and had fuelled a growing black market, while criminal gangs profited from violence and intimidation. 'People are sick of the firebombing, shootings, extortion and killings. They are sick of watching tobacco shops burn, while organised crime takes control of the market,' she said. The senator pointed to a rise in tobacco-related crime, particularly in Victoria, where authorities are battling organised syndicates linked to illicit cigarette sales. 'Victoria Police says there have been 193 tobacco arsons and six homicides directly attributed to the trade. Innocent victims have been killed by arsonists who attacked the wrong home. This is not a victimless crime,' Hanson said. One Nation said repeated tobacco tax hikes had made legal cigarettes unaffordable for many smokers, pushing consumers towards cheaper black-market options. 'Labor's policy is failing. ABS estimates show illicit sources supplied 80 per cent of nicotine consumed in 2025, while total consumption rose almost 40 per cent between 2017 and 2025,' Hanson said. Pauline Hanson (pictured) said Labor had handed the tobacco market to organised crime  'Legal tobacco is being replaced by black-market cigarettes. Excise in a packet of 20 is now about $30.60 and is scheduled to rise again in September.' Hanson said the government had lost billions in revenue as smokers turned to illicit products. 'Excise revenue is in free-fall, dropping from $12.6 billion in 2022-23 to an estimated $4.1 billion in 2025-26 and $3.6 billion this financial year,' she said. 'Labor has not only lost the revenue, it has lost control of the black market in illegal tobacco. Every budget prediction they have made on excise has been wrong, wrong, wrong.' She said One Nation's proposal would significantly cut retail prices for legal cigarettes. The party estimates that a pack that currently costs about $46.50 would fall to around $21 or $22 if the full excise cut is passed on. 'Senate inquiry evidence put illicit packs at roughly $12 to $25. Our plan makes legal tobacco competitive and attacks the gangs' extraordinary profit margin,' Hanson said. One Nation says its plan would be backed by stronger border controls, quicker closures of shops selling illicit tobacco, tougher penalties for traffickers and organisers, and a more aggressive crackdown on unexplained wealth. The government has lost over $8billion in revenue from the tobacco excise tax in just 3 years  'The cut will be matched with stronger border enforcement, faster shop closures, tougher penalties for traffickers and attack organisers, and aggressive seizure of criminal assets and unexplained wealth,' Hanson said. Hanson rejected the move would encourage smoking, insisting the policy is aimed at restoring government control of the market. 'We do not blame Australians under cost-of-living pressure for stretching their budgets. We blame a government that kept doubling down while organised crime built a multibillion-dollar market,' she said. 'This is not about encouraging smoking. It is about restoring the rule of law and breaking the black market. Labor handed this market to organised crime. One Nation will take it back.' Treasurer Jim Chalmers on Tuesday ruled out any reduction in tobacco excise, saying the government would instead continue investing in enforcement efforts to combat the growing illicit tobacco market. Chalmers said the Albanese government had committed an additional $350 million to help law enforcement and border authorities target illegal tobacco operations. 'We actually have seen some busts in recent times,' Chalmers told Nine's Today. 'I thank the police and the authorities for the work that has gone into that, but it remains a substantial challenge and the government will continue to focus on the compliance and enforcement elements of it.'