Australians are smoking fewer cigarettes than ever before, but health experts say a dramatic rise in the use of illegal tobacco is threatening decades of progress in reducing smoking rates.
New data released by the Australian Institute of Health and Welfare (AIHW) shows daily smoking has fallen to its lowest level on record, while the number of smokers buying illicit tobacco products has more than doubled in just two years.
The findings come as NSW Health continues its crackdown on illegal tobacco and vaping products, including action against retailers across Sydney's west.
Smoking continues to decline
According to the 2025 National Drug Strategy Household Survey, just 5.6 per cent of Australians aged 14 and over now smoke every day. That compares with 8.3 per cent in 2022-23 and 19.5 per cent in 2001.
Vaping also appears to have stabilised, with 3.6 per cent of Australians reporting daily e-cigarette use, little changed from 3.5 per cent in the previous survey. Among young adults aged 18 to 24, daily vaping declined slightly, while occasional vaping fell much more significantly.
Public health experts say these figures suggest Australia's long-term tobacco control measures, including high tobacco taxes, plain packaging laws and public education campaigns, are continuing to reduce smoking.
Illegal tobacco use surges
While fewer Australians are smoking, many of those who continue to smoke are increasingly turning to the black market. The AIHW survey found 34 per cent of smokers had recently purchased illicit tobacco products, up from just 16.7 per cent two years ago.
Nearly one in four smokers reported buying branded cigarettes that did not comply with Australia's plain packaging laws, while around one in six purchased loose tobacco sold in unmarked plastic bags. More than half of those purchasing illicit branded tobacco said they bought it from tobacconists.
Under Australian law, all tobacco products must be sold in plain packaging displaying graphic health warnings. Tobacco products on which excise has not been paid are illegal.
Cheaper prices driving demand
Professor Becky Freeman from the University of Sydney said the survey findings were promising, but that illicit tobacco remained a serious obstacle to further progress.
"The number one reason why smokers quit is because of health impacts," Professor Freeman said. "But the number two reason they quit is because of the price. The widespread availability of cheap illicit tobacco undermines those attempts."
Legal cigarettes have almost tripled in price over the past decade because of increases in tobacco excise, while the price of illicit tobacco has remained comparatively stable.
Professor Freeman said enforcement varied significantly between states. "Some states are getting it right," she said. "Others have been woeful and really dragging their feet."
Multiple nicotine products
The survey also found Australians are increasingly using more than one nicotine product, with some smokers now alternating between cigarettes, vaping and nicotine pouches depending on where they are and whether smoking or vaping is permitted.
For the first time, the survey measured nicotine pouch use, with 1.8 per cent of Australians reporting they had used the products in the past year, highest among 18 to 24-year-olds at 8.4 per cent.
Health experts fear this trend could keep people addicted to nicotine for longer, even if cigarette smoking continues to decline.
Hawkesbury concerns
The findings are particularly relevant for the Hawkesbury following recent enforcement action against retailers selling illegal tobacco and vaping products.
NSW Health has substantially increased inspections of tobacconists and convenience stores as part of a statewide crackdown on illicit tobacco and illegal vaping products. Businesses found selling illegal tobacco or vaping products face significant fines, product seizure and, in serious cases, criminal prosecution.
The Hawkesbury Gazette recently reported on enforcement action affecting a local tobacconist, highlighting the increasing focus regulators are placing on illegal tobacco sales throughout western Sydney.
Quitting remains the best option
Despite the rise in illicit tobacco, health experts say the overall trend remains positive. Australia's smoking rate continues to fall, with fewer young people taking up smoking than at any time since national records began.
However, experts warn continued enforcement against illegal tobacco sales, combined with smoking cessation support and public education campaigns, will be essential if Australia is to continue reducing nicotine addiction and smoking-related disease.
For smokers wanting to quit, support is available through Quitline on 13 7848, local general practitioners and NSW Health's free smoking cessation services.
