Australian authorities have revealed the cost of serious and organised crime.
Two reports released on Thursday, by the Australian Criminal Intelligence Commission and the Australian Institute of Criminology, unpack the cost of crimes including illicit drug activity, financial crime, cybercrime, and illicit commodities.
Among these commodities is tobacco sold illegally, estimated to cost Australia $4 billion in 2023/24.
Reports
ACIC and AIC leader Heather Cook launched the two reports on Thursday.
Cook said they reveal “the scale [and] complexity” of serious and organised crime, and the damage they cause.
ACIC and AIC estimate the cost of organised crime reached $82.3 billion in 2023/24, and has since grown by $13 billion.
Aside from the financial costs, Cook highlighted the “human cost” of serious and organised crime, such as harm to health and community, and even death.
Cook said: “Organised criminality can – and does – impact everyday Australians both directly and indirectly.”
The reports break down the individual cost of crime areas. Illicit drug activity cost an estimated $19 billion in 2023/24, while organised financial crime accounted for $13.2 billion.
Tobacco wars
The illicit tobacco trade is one of the costs identified in the reports, totalling an estimated $4 billion in 2023/24. This is four times the 2020/21 estimate of $1 billion.
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The ACIC report said there had been a spate of ‘tobacco wars’ led by organised crime groups importing and selling illicit tobacco.
Beyond the financial cost, the report linked illicit tobacco to more than 200 fire bombings and three homicides, including a case of mistaken identity.
On top of enforcement costs, the Government loses money on illicit tobacco, because it can’t claim tax on its sale.
The Federal Government has taxed tobacco since 1901, making it one of the longest-standing sources of its revenue.
Currently, a single cigarette is taxed at $1.40. Every kilo of loose tobacco has a $2,158.65 levy applied to it.
The Australian Tax Office (ATO) calculated that in 2022/23 the Government lost $2.69 billion due to illicit tobacco sold without the tax.
AIC estimated this would be equivalent to $3.3 billion in 2023/24.
Response
At the launch, Cook said Australia has “world class intelligence, border and law enforcement agencies” responding to serious and organised crime.
Cook said: “Australians can be assured that our agencies are committed, capable and united in the fight.”
In September, the Australian Federal Police said it “remains relentless in our efforts to... dismantle these criminal syndicates” selling illicit tobacco.
