Australia’s ambitious attempt to curb nicotine use through some of the world’s toughest vaping and tobacco regulations appears to be backfiring, as the country now grapples with a surge in black market activity, violent crime, and criticism from public health experts.
Framed as a “world-leading” public health initiative, the government’s anti-nicotine campaign—beginning with legislation passed in 2023—has aimed to sharply reduce access to nicotine vapes by tightly restricting sales and increasing excise taxes on tobacco. However, these well-intentioned moves have unintentionally sparked a growing illicit trade, pushing consumers towards unregulated and often unsafe products.
In April 2024, the federal government enforced new rules mandating that nicotine vapes be sold only through pharmacies. Buyers are required to show identification, consult with pharmacists, and adhere to capped nicotine levels. Minors can only access vapes with a doctor’s prescription. Starting July 2025, new packaging and product regulations will further narrow legal access. These measures are designed to limit vaping among youth and to ensure that vaping is only used as a smoking cessation tool. Yet, implementation has been slow and patchy, with only a fraction of Australian pharmacies opting into the scheme. Legal vape sales have averaged just over 5,900 per month nationwide—minuscule compared to demand.
This limited legal access has driven consumers to illicit sources offering more variety, stronger nicotine concentrations, and far lower prices. The result is a booming underground market that experts say is being exploited by organised crime groups. In the past two years alone, over 200 arson attacks linked to the illicit nicotine trade have been reported. Violent incidents, including homicides, extortion attempts, and kidnappings, have further underscored the dangerous consequences of Australia’s prohibition-style approach. Critics have compared the situation to the global “war on drugs,” where efforts to criminalise supply without reducing demand only strengthened black markets.
State and federal governments have responded with heightened law enforcement. Queensland, for instance, has introduced fines of up to $161,000 for corporations caught violating vape laws, and police now have broad powers to seize and destroy illicit products. The Australian Border Force has received an additional $295 million to combat illegal imports. Still, the focus on punitive measures has drawn concern from health experts who argue that there has been too little emphasis on harm reduction, education, and treatment. Calls are mounting for a re-evaluation of the strategy, especially as Australia’s smoking rate decline lags behind countries like the UK and New Zealand, where vaping is promoted as a safer alternative under stricter youth controls.
Convenience store associations and some state governments have warned that illegal tobacco sales could soon surpass legal ones, threatening public revenue and fueling criminal enterprises. Suggestions to reduce vape excise duties or legalise safer alternatives have so far been rejected by federal authorities, who maintain that high taxes deter smoking. Despite these assertions, an independent review of the vape reforms is not expected until 2027, leaving policymakers with limited short-term data to assess the strategy’s real impact.
As violence escalates and enforcement costs rise, public health advocates and industry stakeholders are urging a policy shift. Many are calling for better regulated access to nicotine alternatives, reform of excise tax structures, and the integration of evidence-based harm reduction practices. Without such changes, critics warn, the country risks entrenching black market networks and undermining its own public health objectives.
