Premier Chris Minns fears Qld illicit tobacco invasion in NSW amid new crackdown
The NSW government will introduce tough new laws targeting the booming illicit tobacco trade on Wednesday morning, including fines for individuals of $660,000.
The Bill would also create a new commercial possession of illicit tobacco offence, carrying a maximum penalty of seven years in prison or a $1.5m fine.
NSW Premier Chris Minns said it was necessary the state government 'take action now' after tough new penalties were introduced across the border in Queensland.
'I've got a great concern that illicit behaviour will cross the border into NSW as criminals flee Queensland. We can't be in that situation,' Mr Minns said.
'I won't allow NSW to be a dumping ground for illegal, illicit behaviour in the state (Queensland)'.
Mr Minns has repeatedly called on the federal government to re-evaluate the tobacco excise, which he blames for pushing people into illicit tobacco.
An average 20-pack of cigarettes in Australia costs about $40, marking a three-fold increase in the past decade.
In the absence of reform, Mr Minns lamented that the state government was having to move forward with a 'law enforcement' solution.
'I'd like to move these laws, these tougher penalties, these increased and enhanced law enforcement powers, alongside a commonsense approach to the excise,' he said.
'I think that would have dealt with both sides of this marketplace, supply and demand.
'The ever-increasing excise (is) pushing more and more people to an illegal marketplace, meaning that our health and law enforcement officials have got to do more work.'
Mr Minns said the tobacco excise was 'the only tax in the world that has doubled over a short space of time, and yet revenue has halved'.
Asked if he had any indication from the federal government of a change to the tax, Mr Minns said he had 'tried to influence their policy'.
'But, they're not going to change,' he said.
Mr Minns said the current fines of about $11,000 for an individual were 'too low for anyone to be dissipated to be part of this criminal marketplace'.
For many, it was just the 'cost of doing business', he added.
Under the plans, corporations will also face a maximum fine of $880,000 for selling illicit tobacco without a licence.
Health officials will also be able to issue a short-term closure order for premises suspected of selling illicit tobacco and then go to court for a longer order.
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