The Australian Taxation Office (ATO) seized and destroyed over 131 tonnes of illicit tobacco in the 2019–20 financial year, representing estimated excise forgone of $171 million. This includes activity undertaken by the ATO as part of the Illicit Tobacco Taskforce (ITTF).
With the assistance of New South Wales Police, Victoria Police, Queensland Police and Australian Border Force, ATO officers executed 19 search warrants and uncovered over 184 acres of illicit tobacco growing in hot spots across regional New South Wales, Victoria and Queensland.
The largest single seizure was in Lake Bolac in Victoria, with the ATO, Victoria Police and Australian Border Force officers locating 31.4 acres of tobacco, seizing and destroying 28 tonnes worth approximately $36.6 million in lost excise.
A total of 65 tonnes worth approximately $85 million was seized and destroyed in New South Wales, 57.8 tonnes worth $75.5 million in Victoria and 8 tonnes worth $10 million in Queensland.
Assistant Commissioner Ian Read said these outcomes demonstrate the ATO’s commitment to disrupting organised crime syndicates that produce and supply illegal tobacco for sale on the black market in Australia.
“The trade in illicit tobacco products in Australia has widespread negative consequences across the community,” Mr Read said.
“Tobacco growing operations are not run by small producers or farmers. They are run by organised crime syndicates who deliberately engage in illegal activities to fund their extravagant lifestyles and other criminal activity.”
“We’re finding crops in regional and remote areas of the country, being grown on land being leased from unsuspecting owners under the guise of growing vegetables,” he said.
“A number of these operations were as a result of tip-offs from concerned members of the community, and I urge people to keep reporting any activity they suspect may involve the production of illicit tobacco. Public tip-offs build on the intelligence we gather from a range of sources and help us to identify, seize and destroy these illicit crops before they are harvested and sold on the black market.”
If you suspect that illegal tobacco is being grown or manufactured in your community you can confidentially report it online at ato.gov.au/illicittobacco or by calling 1800 060 062.
Signs to look out for include intense labour production between November and May, suspicious enquiries about land for lease, unexplained use of water resources and large crops of leafy plants that may resemble kale, cabbage or corn.
Illicit Tobacco Taskforce
The ATO is part of the ITTF that is led by the Australian Border Force. The ITTF was established on 1 July 2018 to investigate, prosecute and dismantle organised crime groups who use the proceeds of illicit tobacco to fund other criminal activity, as well as ensure the appropriate revenue is paid to the Australian Government.
Australian Border Force, Special Investigations Commander Greg Linsdell, said the ITTF is dedicated to disrupting the supply of illicit tobacco and dismantling the criminal syndicates that support the illicit trade.
“As at 30 June 2020, the ITTF has effected the seizure of more than 75 tonnes of smuggled tobacco and approximately 361 million smuggled cigarettes. This is equivalent to over $399 million in evaded duty,” said Special Investigations Commander Linsdell.
Illicit tobacco costs the Australian community $647 million in lost revenue each year. It takes vital money away from the community and places it directly in hands of organise crime groups.
NSW Police Force State Crime Commander, Assistant Commissioner Stuart Smith, said police actively target and investigate those involved in the illegal tobacco trade across the state.
“Despite the warnings, tobacco remains a key facilitated import by organised crime syndicates in an attempt to evade authorities for significant financial benefit
“In the past year, the NSW Police Force have assisted considerably in the execution of warrants and dismantling of locally grown tobacco crops established right across New South Wales – spanning from the Mid North Coast, out to the state’s Central West and Southern Tablelands. Together with our law enforcement partner agencies, NSW Police will continue to put those participating in and facilitating these illicit activities before the courts,” said Assistant Commissioner Smith.
It has been illegal to grow tobacco in Australia for more than a decade. If convicted, growing tobacco carries a maximum penalty of up to 10 years’ imprisonment.
For more information about illicit tobacco, visit ato.gov.au/illicittobacco
Information for journalists
|
Region |
Month and year |
Crop acres destroyed |
Estimate of dry weight from seizures (cigarettes, crops and picked) |
Estimate of excise forgone |
|
|---|---|---|---|---|---|
|
Lake Bolac, VIC |
March 2020 |
31.4 |
28,000 kg |
$36.7 million |
|
|
Patho, VIC |
May 2020 |
14.95 |
9,550 kg |
$12.5 million |
|
|
Nhill, VIC |
March 2020 |
4.9 |
5,900 kg |
$7.7 million |
|
|
Bylands, VIC |
April 2020 |
17.1 |
9,600 kg |
$12.6 million |
|
|
Landsborough, VIC |
March 2020 |
7.8 |
4,600 kg |
$6.0 million |
|
|
Total |
|
76.15 acres |
57,800 kg |
$75.5 million |
|
|
Region |
Month and year |
Crop Acres destroyed |
Estimate of dry weight from seizures (cigarettes, crops and picked) |
Estimate of excise forgone |
|---|---|---|---|---|
|
Mt Seaview and Port Macquarie, NSW (4 locations) |
January 2020 |
49.6 |
26,500 kg |
$34.5 million |
|
Bevendale, NSW |
May 2020 |
8.7 |
12,200 kg |
$15.9 million |
|
Boxers Creek, NSW |
February 2020 |
3.8 |
10,300 kg |
$13.3 million |
|
Peelwood, NSW |
March 2020 |
10.7 |
5,900 kg |
$7.7 million |
|
Peats Ridge, NSW |
April 2020 |
13.2 |
2,400 kg |
$3.1 million |
|
Bungonia, NSW |
April 2020 |
3.4 |
1,950 kg |
$2.5 million |
|
Lidcombe NSW |
July 2019 |
0 |
2,000 cigarettes |
$12,000 |
|
Region |
Month and year |
Crop acres destroyed |
Estimate of dry weight from seizures (cigarettes, crops and picked) |
Estimate of excise forgone |
|
|---|---|---|---|---|---|
|
Berrigan NSW |
April 2020 |
0 |
2,500 kg |
$3.3 million |
|
|
Mendooran, NSW |
April 2020 |
5 |
3,200 kg |
$4.2 million |
|
|
Total |
|
94.4 acres |
64,950 kg |
$84.5 million |
|
|
Region |
Month and year |
Crop acres destroyed |
Estimate of dry weight from seizures (cigarettes, crops and picked) |
Estimate of excise forgone |
|
|---|---|---|---|---|---|
|
Winfield, QLD |
June 2020 |
6.9 |
5,250 kg |
$6.9 million |
|
|
South Kolan, QLD |
June 2020 |
4.3 |
1,600 kg |
$2.1 million |
|
|
Gungaloon, QLD |
June 2020 |
3.14 |
1,200 kg |
$1.6 million |
|
|
Brisbane QLD |
July 2019 |
0 |
7,480 cigarettes 2 kg dried tobacco |
$8,000 |
|
|
Woodridge QLD |
October 2019 |
0 |
2,000 cigarettes 4 kg dried tobacco |
$7,000 |
|
|
Total |
|
14.34 acres |
8,056 kg |
$10.6 million |
|
|
Region |
Year |
Crop acres destroyed |
Estimate of dry weight from seizures (cigarettes, crops and picked) |
Estimate of excise forgone |
|---|---|---|---|---|
|
Australia |
2019–20 |
184 acres |
130,806 kg |
$170.6 million |
Media assets:
- Illicit tobacco infographic (PDF 466KB)This link will download a file
- Audio grabs
- Nhill, Victoria
- Lake Bolac, Victoria
- Landsborough, Victoria
- Image 1 - Dried tobacco (JPG 3.9MB)This link will download a file
- Image 2 - Dried tobacco (JPG 3.4MB)This link will download a file
- Image 3 - Dried tobacco on trailer (JPG 2.8MB)This link will download a file
- Image 4 - Production facility (JPG 3.1MB)This link will download a file
- Image 5 - Production facility (JPG 2.5MB)This link will download a file
- Image 6 - Harvesting equipment and crop (JPG 3.1MB)This link will download a file
- Goulburn, New South Wales
- Image 1 - Tobacco crop (JPG 4.1MB)This link will download a file
- Image 2 - Tobacco leaf in drying rack (JPG 3.1MB)This link will download a file
- Image 3 - Bales of tobacco (JPG 4.6MB)This link will download a file
- Image 4 - Hothouse (JPG 5.4MB)This link will download a file
- Video 1 - Tobacco crop (MOV 6.5MB)This link will download a file
- Video 2 - Crop being ploughed (MOV 2.8MB)This link will download a file
- Video 3 - Hothouse (MOV 2.3MB)This link will download a file
- Mount Seaview, New South Wales
- Image 1 - Tobacco crop (JPG 383KB)This link will download a file
- Image 2 - Tobacco crop (JPG 379KB)This link will download a file
- Image 3 - Production equipment (JPG 568KB)This link will download a file
- Video 1 - Tobacco crop wide view (MP4 2.3MB)This link will download a file
- Video 2 - Portrait tobacco crop being destroyed (MP4 9.4MB)This link will download a file
