Border Force Plans To 'Claw-Back' Billions By Cracking Down On Illegal Tobacco Traders

And it all gets started in July this year.

What you need to know
  • The government will make $3.6 billion from combating illicit tobacco
  • The crack down will focus on smuggling, Australian production and product leakage
  • The measures will start coming into affect from July 2018

The Federal Government is promising to 'stop' racking-up debt to pay for its spending by 2020, a year earlier than promised.

To help get it over the line, Border Force plans to 'claw-back' billions by cracking down on illegal tobacco traders.

Combatting illicit tobacco will make the Government $3.6 billion over the next four years.

The crack down will target the three main sources of illicit tobacco in Australia -- smuggling, domestic production and leakage from licenses warehouses.

A key part of this will be strengthening Australian borders with the creation is a specialised Illicit Tobacco Task Force.

Tobacco Task Force

The task force will be managed by the Australian Border Force and will combat illicit tobacco smuggling through a number of new powers. From 1 July 2018, the force will be formed and eventually, will have the capability to gather information and intelligence about organised crime groups illegally importing tobacco into Australia.

Tobacco Permits

From 1 July 2019, permits will be required for all imports of tobacco above that of the duty free limit. The aim of this new measure is to make it easier for task force staff to identify when large amounts of tobacco is being imported into the country. This means that tobacco where no duty has been paid will be seized and according to the government, will deter people from smuggling tobacco into Australia.

Duties And Taxes

All importers of tobacco will be required to pay all duties and taxes at the time of importation. This is a change from the current system, where tobacco can be imported into the country, stored in a licensed place and then paid for at a later date. ten daily understands this will work to prevent importers avoiding tobacco tax altogether.

Domestic Crops

The Australian Taxation Office will be provided extra funding to find and destroy domestically grown tobacco drops.

The measures will be rolled out from 1 July 2018, with others following by July 2019.