Australian Border Force: Illegal tobacco and vaping products worth A$1 billion in tax revenue gap intercepted in Q2 2025

Key Points

• Total Value: In the second quarter of the 2025/26 financial year (1 October to 31 December 2025), the tax evasion associated with illicit tobacco and e-cigarettes intercepted at Australia's borders amounted to approximately A$1 billion (approximately US$680 million).
  Weight: Over 467 tonnes of illicit cigarettes and loose tobacco were seized.
• New South Wales: 14.4 million cigarettes seized from a Chinese shipping container in October; 2.5 tonnes of molasses tobacco (concealed behind "fruit juice") seized days later; 52,800 e-cigarettes seized from a Kuala Lumpur-bound container in November, declared as "dumbbells" and "trampolines".
• Rise in e-cigarette liquid smuggling: 3 litres seized from Hong Kong air freight in Adelaide (declared as aroma diffusers); over 5.5 litres seized from multiple parcels originating UK and France via Brisbane international mail.
• Victoria Airport: Multiple passenger smuggling cases in recent months originating from Lebanon and Taiwan; one case involving a female passenger arriving from Lebanon is pending prosecution.

2Firsts, Feb 5, 2026

According to the Australian Border Force (ABF), illicit tobacco and vapes linked to an estimated A$1 billion in evaded duty were stopped at the Australian border in Q2 of FY2025/26 (Oct 1–Dec 31, 2025), including seizures totaling more than 467 tonnes of illicit cigarettes and loose-leaf tobacco. Using the rate A$1 = US$0.68, the evaded duty figure is approximately US$680 million.

ABF said sea cargo interceptions featured prominently. In New South Wales, Australia, officers seized over 14.4 million cigarettes in mid-October from a shipping container originating from China. Days later, they found more than 2.5 tonnes of molasses tobacco concealed behind “juice” consignments. In November, ABF discovered 52,800 vapes in a container from Kuala Lumpur, Malaysia, which had been declared as “dumbbells and trampolines.”

ABF also flagged a rise in vape liquid detections. In Adelaide, Australia, officers seized three litres from air cargo originating in Hong Kong, declared as diffuser fragrance. In Brisbane, Australia, officers intercepted multiple international mail consignments from the UK and France, totaling more than 5.5 litres.

In Tasmania, Australia, ABF reported one of its largest cigarette seizures just before Christmas, after officers searched a container from Poland and uncovered more than 5.4 million illicit cigarettes, falsely declared as stretch film.

At Melbourne Airport in Victoria, Australia, ABF detected multiple traveler-smuggling attempts over the past three months, including:

• a male traveler and companion arriving from Lebanon with 7kg of tobacco;
• a male traveler from Taiwan with 23,400 cigarettes concealed in luggage;
• a female traveler from Lebanon carrying 11.5kg of tobacco and 13,200 cigarettes (pending prosecution);
• two male travelers from Lebanon with over 5,000 cigarettes and 11.75kg of tobacco.

Illicit Tobacco and Vape Enforcement Commander Greg Dowse said the figures underscore that illicit tobacco remains a top ABF priority, adding that ABF targets the black-market business model before goods reach Australia and continues post-border through cooperation and intelligence sharing. ABF encouraged anyone with information to contact Border Watch.

Image source: Australian Border Force (ABF)