Australian Government to raise prices of Tobacco by 25%

Unbreakable

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Smokers face a 25 per cent tax rise from midnight after Prime Minister Kevin Rudd revealed they may already be rushing to stockpile cigarettes.

The government will also force tobacco companies to use plain packaging from July 1, 2012 - a move that one expert says will lead to a million fewer smokers by 2020.

At a press conference in Sydney this morning, Mr Rudd said he had been alerted to "changes in consumer behaviour" after speculation about the 25 per cent rise in excise duty on cigarettes.

So the increase had been brought forward to midnight tonight, he said.

The rise will add about $2.16 to a pack of 30 cigarettes and generate an extra $5 billion over four years, which the government vows to invest in hospitals.

"Because of media speculation about the excise in recent days, there was real concern about changes to consumer behaviour and the importance of acting now," Mr Rudd said, saying the decision had been brought forward on advice from the Tax Office.

Health Minister Nicola Roxon said the Tax Office was already monitoring cigarette outlets for any signs of stockpiling among consumers today.

"The Tax Office will be taking steps if there is any evidence of hoarding between the announcement being made and the time at which it commences," she said.

"We obviously want to make sure that these announcements have the effect as intended, which is that from midnight tonight your average packet of 30 cigarettes will cost $2 or so extra as a result of these changes.

"And we hope and we encourage the community to think again about whether now is the time to quit."

Mr Rudd denied the announcement was politically motivated or brought forward to draw attention away from the stalling of the ETS.

"There appears to be sort of an assumption in your question that this is somehow a popular announcement. It’s just not," he said.

"There’s a whole lot of smokers out there and I don’t think it’s going to be greeted with dancing in the streets."

A government statement says the changes will cut tobacco consumption by 6 per cent and the number of smokers by 2 or 3 per cent - about 87,000 Australians.

Internet advertising of cigarettes will also be restricted, and an extra $27.8 million will be spent on anti-smoking campaigns.

New legislation will prohibit logos, brand imagery, colours, and promotional text other than brand and product names in standard colour, position, font style and size, the government statement says.

"The new branding for cigarettes will be the most hardline regime in the world and cigarette companies will hate it," Mr Rudd said.

A leading youth worker said today that plainer cigarette boxes may make no difference to whether young people try smoking.

A Woolworths spokeswoman said stores had started to see a spike in sales.

"Our stores are starting to report that customers are buying more cigarettes that usual - not in huge quantities but more like three or four packets rather than one," she said.

"However, we are anticipating the demand for tobacco products will increase significantly as the day goes on and more people become aware of the impending price changes.

Coles said it had seen a spike in sales this afternoon and had instituted at three carton limit per customer to deal with the demand.

But the supermarket chain said it had a supply of cigarettes bought under the old excise and did not expect to be changing prices until the weekend.
‘

‘We won’t be changing our prices at midnight tonight,’’ a spokesman for Coles, Jim Cooper, said. ‘‘We’ve got existing stock in store.’’

A worker at an Alexandria newsagency said he had seen no rush to buy cigarettes.

source:

http://www.smh.com.au/national/smok...crease-to-beat-stockpilers-20100429-ttm4.html

Lucky Aussie's
 
"And we hope and we encourage the community to think again about whether now is the time to quit."

A community doesn't use tobacco. It's used by individuals. Everyone is not the same. People are not cattle.

Don't you just hate it when government uses your own tax dollars to control your private behavior.
 
unbreakable, how can you POSSIBLY be in favour of this tax?! you realize that this is 'the government' interfering with freedom for the sake of happiness right?
 
It will cost around 15-17 aud now for premium 25's 8o
My cigarettes will cost pretty much 15 aud for a 20 pack now. Sucks living here more and more every day :(
 
Australia really is trying to make itself the Western world's least free nation.

And Rudd is a complete cunt.
 
unbreakable, how can you POSSIBLY be in favour of this tax?! you realize that this is 'the government' interfering with freedom for the sake of happiness right?

How is dying from lung cancer "happiness"? The stark reality is that smoking kills consumers at a 2:1 ratio. I'm an Australian smoker battling with the insidious addiction to nicotine and I applaud this move. Ever seen someone die from lung cancer, it ain't pretty, and there is ample evidence to show that increasing the price of tobacco reduces the number of people who get addicted in the first place and increases the number of people who quit. There is nothing "happy" about indulging in a filthy, stinking, deadly habit that does NOTHING for you except makes you feel better because you stop the withdrawal process.
 
Even better, by 2012 all marketing of cigaretts will be banned, right dowwn to using colours to promote their product. Example:

A current pack of Winfield 'Blue'

WinfieldBlue-25fAU2007.jpg


And a future pack of Winfield Blue, according to proposed legislation

cigarette-420x0.jpg


An excellent public health measure. There is a thread on the topic in CE+P for anyone who wants to take it up :)
 
Exactly. Death isn't a pretty thing. It's not supposed to be.
Westerners dress death up in a nice drug induced haze and surround the sick with flowers.
We think it's something we have to hide from.

FYI the government isn't doing this for people's health. They are doing it for money and voters. All you alcohol drinkers out there are next. In fact they've already started on that. It won't be long before you're paying 80 bucks for a bottle of shit whiskey.

I'm moving as soon as I get enough money. Australia is worse than America now. Just as America is starting to get better.
 
It's a false premise that a tax hike on tobacco will raise a fixed amount of revenue. One likely result is cigarette smuggling will become rife. Purchases on the black market lose the government not only the tax increase, but also the original tax. For every black market sale, the government has to sell 3 packs of cigarettes just to get the same revenue they were getting before the tax increase.

Alcohol has the advantage of being easy to make on a small scale. Increasing the tax on it would hopefully result in an explosion of home brewing.
 
But what form of death IS pretty? Alzheimer's isn't. You have to die of something.

Well, seeing a loved one die in their early fifties, when otherwise you might have got to spend another 20 years or so with them, certainly opens ones eyes.
 
I'm moving as soon as I get enough money. Australia is worse than America now. Just as America is starting to get better.

Good luck with that! :D

Have you spoken to any American's lately? It's hardly the land of opitimism, put it that way. "Shit, I can't get a job or afford healthcare... But at least the smokes are cheap!"
 
How is dying from lung cancer "happiness"? The stark reality is that smoking kills consumers at a 2:1 ratio. I'm an Australian smoker battling with the insidious addiction to nicotine and I applaud this move. Ever seen someone die from lung cancer, it ain't pretty, and there is ample evidence to show that increasing the price of tobacco reduces the number of people who get addicted in the first place and increases the number of people who quit. There is nothing "happy" about indulging in a filthy, stinking, deadly habit that does NOTHING for you except makes you feel better because you stop the withdrawal process.

understanding stuff is hard sometimes, eh?
 
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