Mr REPACHOLI (Hunter) (17:22):

Law enforcement agencies worldwide are confronting a growing challenge in the battle against organised crime. These criminal networks are resorting to increasingly violent tactics, such as arson, threats and assault, to dominate the illicit tobacco market and safeguard their profits in this country. Our border agency has made significant strides in countering this threat. Last year the Australian Border Force recorded over 120,000 detections of illicit tobacco, resulting in seizure of more than 1.77 billion cigarettes and over 867 tonnes of looseleaf tobacco. The ABF is expecting to surpass these figures this year.

It's important to acknowledge that border enforcement alone cannot fully eliminate this complex issue. Our government has taken a proactive approach to addressing this problem comprehensively by collaborating with justice, law enforcement, health portfolios and state and territory governments. Our federal agencies are at the forefront of efforts to curb illicit tobacco, targeting organised crime with a focus on disrupting priority illicit tobacco networks. The Illicit Tobacco Taskforce, comprising various agencies like the ABF, the Australian Taxation Office, the Department of Home Affairs, AUSTRAC, ACIC and the CDPP, channels its resources towards dismantling the criminal syndicates with the most significant impact on Australia's illicit tobacco market. The ABF is actively engaging with state and territory governments to foster greater cooperation in addressing all aspects of illicit tobacco, from offshore activities to importation to production and domestic manufacturing and sales.

Operational agencies have emphasised that raiding illicit tobacconists at local level won't solve these issues, as these organised crime groups are highly adaptive. Therefore the Illicit Tobacco Taskforce is collaborating with state and territory agencies across Australia to tackle the root problem and disrupt the criminal networks profiting from it. These efforts aim to make a more lasting impact against these groups.

Collaboration with the state and territory agencies has yielded promising results, with raids resulting in the seizure of more than 264 tonnes of illicit tobacco. By removing the tobacco crops, we have cut off the profits that could flow back to these organised crime networks. Additionally, during Operation Harvest Home, police seized over $1.4 million in cash, more than 2.8 million cigarettes, over 380 kilos of loose-leaf tobacco, and vaping products worth an estimated $5.3 million. The joint Operation Aberdeen, which involved various agencies, led to the seizure of $835,000 in cash, over eight million cigarettes, 3.74 tonnes of loose-leaf tobacco and 60,000 vapes, with an approximate street value of $1.8 million.

Furthermore, the Illicit Tobacco Taskforce, in collaboration with the AFP, has been executing search warrants in New South Wales against illicit tobacco organised crime networks in an ongoing operation. In other states, the taskforce works closely with the joint organised crime taskforce to address and disrupt Middle Eastern organised crime syndicates linked to illicit tobacco. These operations are part of a multifaceted approach to disrupt these organised crime networks and prevent their profits from being channelled into other illegal activities.

Australia has adopted some of the world's most robust measures to combat the importation and trade of illicit tobacco. The ABF leads the government's efforts in this regard, underpinned by a package of illicit tobacco reforms implemented on 1 July 2019. These reforms include the regulation of tobacco as a prohibited import, the establishment of a tobacco import regime, the strengthening of illicit tobacco offences and penalties, the collection of tobacco duty and taxes at the border and the establishment of the Illicit Tobacco Taskforce. These measures have significantly enhanced the ABF's ability to detect, deter and disrupt illegal tobacco industry. Penalties for illicit tobacco offences include imprisonment of up to 10 years, monetary penalties up to five times the duty evaded, or both.