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News.com.au
11 minutes ago
- News.com.au
Experts back NSW Premier Chris Minns' plea for cigarette tax cut despite opposition
NSW Premier Chris Minns says law-abiding citizens are being 'dragged into the black market' by the federal government's tobacco tax – and he wants that to change. Mr Minns threw down the gauntlet this week when he called for a re-evaluation of the tobacco excise, kicking-off political rows in both Sydney and Canberra. Twice yearly, the federal government sets the excise for tobacco products but in this year's budget recorded a $5.2bn decline in revenue since 2022-23. The NSW Premier has pointed the finger at illicit sales at tobacconists, some 5000 of which have opened up across NSW over the past few years. 'There's a whole bunch of law-abiding people who wouldn't break the law in a million years,' Mr Minns said. 'But, they're being dragged into a black market where they go to the store and they can either buy a $17 packet of illegal cigarettes or a $60 packet of cigarettes. 'It's a no-brainer.' Despite pushback, Mr Minns said every tax change started with 'an idea from someone who calls out a policy that's no longer fit for purpose'. 'So, let's get the ball rolling here because these illegal tobacco stores are pushing out hot bread shops, small businesses and restaurants. 'Because the sales from illegal tobacco are so lucrative, they can just pay the rent at a higher price. 'Something's gone amiss here and we need to have a crack at fixing it alongside our federal colleagues.' Mr Minns earlier signalled that police resources may have to be moved from domestic violence and organised crime to combat illicit tobacco. Mr Minns said the situation was 'intolerable', with 'every to-let shop in every high street in Sydney taken over by a tobacconist'. 'The biggest supporters of a massive excise on tobacco sales in NSW are probably organised criminals,' he said. 'It's a giant black market and major display on every street in every suburb in NSW.' No easy answers On Wednesday, federal Treasurer Jim Chalmers ruled out any change to the excise, saying making cigarettes cheaper wouldn't solve the issue of the booming illegal tobacco trade. In NSW, there are about 19,500 tobacco stores across the state – up from 14,500 a few years earlier – that are overseen by only about 30 health inspectors. A parliamentary inquiry into illicit tobacco sales, pushed for by the NSW opposition, will later this year examine which agency is best suited to the task. Until now, Liberal leader Mark Speakman has remained mum on whether NSW Police should takeover illicit tobacco enforcement from NSW Health. On Thursday, Mr Speakman said illicit tobacco had exploded under Mr Minns and organised criminal gangs were 'raking in big money'. 'They know NSW has minimal enforcement and some of the weakest penalties in the country,' Mr Speakman said. 'While other states have acted to drastically increase penalties and improve enforcement, Chris Minns has been missing in action. 'Now that the federal Treasurer has ruled out changes to the federal excise, Chris Minns needs to tell people how he is going to tackle this issue.' Under law, an individual found to be selling a prohibited tobacco product faces a maximum fine of $55,000 for a first offence. Those laws will change on July 1 when a new tobacco licensing scheme is introduced, requiring businesses to obtain a tobacco retailing licence. Businesses found to be selling tobacco products without a licence will face fines of up to $220,000 and $44,000 for an individual. Nonetheless, the issue sparked a fierce debate in NSW parliament on Wednesday between Mr Speakman and Police Minister Yasmin Catley. Asked about whether anti-gang Taskforce Falcon will expand its remit to illicit tobacco, Ms Catley struck out. 'The leader of the opposition knows that it is Health that enforce illicit tobacco. He knows that,' she said. 'And, he has come in here and has the audacity to come in here and say the police are not doing their job. Well, shame on you. Shame on you. 'NSW Police are doing absolutely everything they can and I am disgusted that the leader of the opposition could come to the NSW parliament and suggest otherwise.' For his part, NSW Health Minister Ryan Park has pointed the finger at the former Coalition government for not earlier introducing a licensing scheme. What do the experts say? Over the past six years, the duty price put on a 20-pack of cigarettes has gone up by about 75 per cent – from $16 to $28. As a result, the price of a packet at the counter sits about $40-50, with the cheapest little more than $30. Illicit cigarettes, meanwhile, cost about $13-15 per 20-pack and up to $20 for premium brands. University of Sydney School of Public Health researcher Edward Jegasothy supported Mr Minns' comments on the tobacco excise. He said there was no solution to the prevalence of illicit tobacco without a re-examination of the 'punitive' policy. 'There's really no ethical basis for the policy because it's essentially just a punitive policy attack on the poor,' he said. Mr Jegasothy said the policy had failed to demonstrate any 'meaningful health benefits and certainly no equitable health benefits'. 'I can't see a solution that doesn't have involve bringing down the tax,' he said. 'It has to be part of the solution … because it is essentially putting more holes in the bottom of the boat.' Mr Jegasothy said the belief that the excise, in increasing the cost of cigarettes, would reduce rates of smoking 'didn't hold water'. With rates of smoking higher among poor and marginalised groups, he instead encouraged solutions that addressed the root causes, 'which is largely poverty'. He urged for a review of the excise as a public health policy, including up until the explosion of black market sales in the early 2020s. That explosion, Mr Jegasothy suggested, came as a result of a combination of factors, including the cumulative impact of the excise and a tightening on loose leaf tobacco. The Australian Association of Convenience Stores has also backed Mr Minns' call for a rethink of the tobacco excise. Chief executive Theo Foukkare said it was 'extraordinary that it's gotten to this point'. 'Tobacco is a price-sensitive consumer product,' he said. 'If you put a price on it that is manifestly higher than what people can afford, they'll find a cheaper alternative and that's where this incredibly dangerous black market is cashing in – and even worse, they're using that money to fund the most atrocious crimes.' What about other states? NSW is far from the only state or territory in Australia where the issue of illicit tobacco has become a hot-button topic in recent years. In Victoria, police have continuingly battled the so-called tobacco wars, conflict between organised crime groups during which stores have been burned. According to Victoria Police, there were about 1300 stand-alone tobacco stores in the state – of these, 1000 sell some kind of illicit tobacco. From July 1, business caught possessing or selling an illicit tobacco product in Victoria face fines of up to $1.7m. For an individual, that penalty is about $830,000 or 15 years in prison. Further north, Queensland Health seized more than 15.2 million illicit cigarettes worth $12.2m across the state between July 1, 2024 and February 28, 2025. Mr Jegasothy said outside of NSW and Victoria, there was little publicly available information about the prevalence of illicit tobacco.

Daily Telegraph
33 minutes ago
- Daily Telegraph
‘Biggest certainty ever for the Melbourne Cup': Aidan O'Brien takes another swipe at Jan Brueghel scratching
Don't miss out on the headlines from Horse Racing. Followed categories will be added to My News. 'We thought he was the biggest certainty ever for the Melbourne Cup last year.'' This was Irish training genius Aidan O'Brien's comment at Epsom Downs overnight when asked about the controversial scratching of his top stayer Jan Brueghel just days out from the Melbourne Cup last spring. • PUNT LIKE A PRO: Become a Racenet iQ member and get expert tips – with fully transparent return on investment statistics – from Racenet's team of professional punters at our Pro Tips section. SUBSCRIBE NOW! Jan Brueghel, who gave O'Brien a 10th win in the Group 1 Coronation Cup at Epsom's Oaks Day meeting, was Melbourne Cup favourite only to be withdrawn by Racing Victoria veterinarians just days prior to the famous Flemington two miler. O'Brien was asked about the Melbourne Cup controversy after Jan Brueghel, who was the unbeaten winner of the English St Leger last year, held off favourite Calandangan in a Coronation Cup thriller. The champion Irish trainer has never won the Melbourne Cup but thought Jan Brueghel was weighted to win last year with 54kg. 'He was in with such a low weight. We thought he couldn't get beat, really,'' O'Brien said. O'Brien was at the US Breeders Cup meeting when Jan Brueghel was scratched from the Melbourne Cup and was critical of Racing Victoria's strict veterinary protocols. 'They made the decision and our vets didn't agree with that,'' O'Brien said at the time. 'They said there was a shadow in front and a shadow behind, but every three-year-old at this time will have shadows and fissures and have this and have that. 'There comes a point when it becomes ridiculous, the horsemen and women have been taken out of the picture.' O'Brien was asked at Epsom if Jan Brueghel would return for the Melbourne Cup this year and the Irish trainer replied emphatically: 'No, absolutely not!' O'Brien suggested Jan Brueghel is likely to be set for the Group 1 King George VI and Queen Elizabeth Stakes at Ascot in July and has not ruled out running the stayer in Europe's most prestigious weight-for-age race, the Group 1 Prix de l'Arc de Triomphe at Longchamp in October. Jan Brueghel was the first of two Group 1 winners for O'Brien at Epsom as he also trained the quinella in the English Oaks with Minnie Hauk defeated stablemate Whirl. Minnie Hauk was O'Brien's 11th winner of the English Oaks. Originally published as 'Biggest certainty ever for the Melbourne Cup': Aidan O'Brien takes another swipe at Jan Brueghel scratching after Coronation Cup success

Daily Telegraph
33 minutes ago
- Daily Telegraph
Hidden Motive triumphs in thrilling finish at Randwick
Don't miss out on the headlines from Horse Racing. Followed categories will be added to My News. The Private Harry crew stuck again when Hidden Motive scrambled home at Royal Randwick on Saturday. Hidden Motive, the heavily backed favourite, just held off rank outsider Kujenga in a deceptively tight finish for the Precise Air Handicap (1100m). Sean Driver of Kurrinda Bloodstock was pleasantly surprised when his colt Hidden Motive was declared the winner. Racenet iQ members get full access to our Pro Tips service, where Greg and our team of professional punters provide daily tips with fully transparent return on investment statistics. SUBSCRIBE NOW and start punting like a pro! 'To be honest we didn't think he got the bob,' Driver said. 'But he's a tough horse and was able to win in conditions that didn't suit. 'He will go home now to our farm in the Hunter Valley for two weeks and the big aim is the Coolmore (Stud Stakes) in the spring.' Talented colt Hidden Motive, trained by Nathan Doyle and ridden by Ash Morgan, was backed from $1.95 into $1.65 favouritism and just held off $81 bolter Kujenga to win by a nose with Matima ($3.80) a long head away third. Hidden Motive, a stablemate of Kurrinda Bloodstock's exciting unbeaten sprinter and The Everest contender Private Harry, scored his second successive win to complete a promising two-year-old season. 'We feel he is a four-five lengths better horse than what he showed today,' Driver said. 'He overraced, he got pestered in front and did a bit of work there. He will improve a lot. 'Wait until you see him on top of the ground. At home what he shown us, he is absolutely electric.' Morgan, who has ridden Private Harry to all five wins including the Group 1 The Galaxy this season, also has big opinion of Hidden Motive's emerging potential. 'I thought it was a very good win,' Morgan said. 'He paraded a lot better than he has been and he was very relaxed and switched off. 'Probably that first ten or fifteen metres he was a little switched off, but I let him roll up. That horse (Dubbo Boy) came to him and we just fired each other up a little bit. 'So, it was a really good win. I know it was a very small margin but he was entitled to get beaten.' Hidden Motive was born and raised at Scone nursery, Cressfield, and was offered as part of their 2024 Magic Millions Yearling Sale draft. Purchased by Doyle Racing and Kurrinda Bloodstock, the colt's $120,000 price-tag belies his epic pedigree. For starters, Hidden Motive is a son of the Magic Millions 2YO Classic and Golden Slipper winner, Capitalist. On top of that, Hidden Motive is the fourth foal of his dam, Secret Agenda, whose seven career wins included the Group 1 Robert Sangster Stakes in Adelaide and Group 2 Sapphire Stakes in Sydney. Hidden Motive is another quality descendant of the racetrack champion and broodmare gem, Denise's Joy. Driver also revealed Private Harry has returned to Doyle's Newcastle stables to begin preparations for the Group 1 $20m The TAB Everest (1200m) at Royal Randwick on October 18. 'Private Harry has been back in the stables for about two weeks and has put on between 65-80kg – and it's all muscle,' Driver said. 'He has grown about an inch-and-a-half, you've got to remember he's only three so he's still got that bit of growing to do. He looks outstanding.' Driver revealed Doyle is planning to give Private Harry two lead-up races into The Everest. 'We are going to The Shorts and then the Premiere Stakes before The Everest,' Driver said. 'He will have two barrier trials but whether the first one is in Newcastle – I'll be honest, he doesn't do much at home. He's very lazy. 'He has never beaten a horse home in trackwork. Nathan will have a horse going to Port Macquarie and it will beat him. 'If you're going off his trackwork, you might not sleep at night. But his IQ is through the roof. I imagine he will have his first trial at home, his second trial we'll come to Sydney, an exhibition gallop and then we'll go first-up.' Just 35 minutes after Hidden Motive's win, Doyle and Morgan completed an early brace when Hellfire Express scored more decisively than his stablemate in the Midway Handicap (1500m). Hellfire Express ($15) led most of the way and held off the late closing Convergent ($10) to win by one-and-a-quarter lengths with the unlucky Callistemon ($5.50) third just in front of favourite Engine Room ($4.60). Morgan's breakout season has included his first Group 1 win with Private Harry and another four stakes races. His Randwick double moved him to 98 wins on all tracks this season. But the in-form jockey is not about to rest on his laurels. 'I don't want to take a break,' Morgan said. 'I feel like I have worked too hard to take it easy now, so I'm just trying to roll while the momentum is good. It has been a magic season.' Originally published as Promising colt Hidden Motive has spring Group 1 target after digging deep for narrow victory at Randwick